The volume of cross border electricity trade (CBET) is currently far less than its potential in the BBIN (Bangladesh, Bhutan, India and Nepal) subregion. Given their rich renewable energy resource endowments and market complementarities, enhanced CBET can help the subregion in meeting its ever-growing energy demand from green energy sources. The North East Region (NER) of India is particularly well positioned to act as a key supplying market and transit point for CBET in the subregion due to its geographical advantages and renewable energy capacities. Based on an analysis of the current energy mix of the BBIN countries as well as the existing legal and institutional frameworks for cross-border energy cooperation and trade, this paper finds that higher volumes of CBET can be facilitated by strengthening regulatory coordination and institutional architecture for a subregional power trading system. This would also help to create an enabling environment of attracting capital investments into renewable energy sector. A comprehensive policy framework for achieving this goal is proposed including capacity building of power transmission utilities, creation of inclusive subregional CBET coordination committees, and institution of forums for power sector regulators.