Green energy has been popularized in the global community over the last few years on the questions of energy security and reducing pollution. There is a close connection between energy supply and economic development. As a part of the sustainable development goals (SDGs), the use of renewable green energy is a must. There is no doubt that the demands of energy cannot be mitigated by the South Asian states. Small states like Nepal, Bhutan, and Maldives have different energy policies. Nepal and Bhutan have potential hydel power but Maldives has neither a hydel power project nor a thermal power project. The Maldivian government emphasizes solar energy, windmill-based energy, and biomass. Green energy is an eco-friendly alternative energy that cannot be able to meet the demands of energy for the entire country. The chapter intends to investigate the initiatives of Nepal, Bhutan, and Maldives toward introducing green energy and how it works. Besides, it analyzes the capacity of the governments of these three countries to initiate green energy use. Using the content analysis method, the study finds that, at this moment, green energy is unable to meet the required energy for developmental activities of these three countries in the region. The basic argument of this chapter is green energy that is expected for the greater interest of the global community but proper implementation of green energy is challenging for Nepal, Bhutan, and Maldives.