Fri. Mar 29th, 2024

India and Nepal have agreed to set up an “Energy Banking” mechanism in order to help the Himalayan country to export its surplus electricity to its nieghbours during the monsoon season and to import power during its lean season of winter.

According to ANI news reports, the agreement on the “Energy Banking” mechanism was marked between both countries during a meeting between Indian and Nepali energy secretaries on Thursday in Pokhara, following the recommendations by the electricity authorities of both the countries.

Nepali government officials said the agreement was based on nature of demand and supply, according to the state news agency RSS reports.

The demand for electricity in Nepal reached its peak during their summer months and the production drops to one-third of demand. Likewise, the electricity’s demand in India reached a peak during the monsoon season and drops during the winter seasons.

According to the agreement signed, Nepal will export its surplus electricity, during the monsoon season, to India.

The NEA (Nepali Electricity Authority) said in a couple of years, around 4,750 megawatts surplus electricity has remained unused, which will be utilized now. With converting the surplus electricity into monetary value, it would work out to Nepali Rs one trillion and 79 billion.

Aiming to make electricity mechanism stable and strong in Nepal, the Indian government has agreed to extend its capacity of the Kataiya-Kusaha and Raksaul-Parwanipur 132 KV transmission line. An equilibrium of about 50-50 megawatt electricity has been imported through these two transmission lines.

After extending the transmission lines into India, it would further help the Bhairahawa Industrial Estate to manage the load through the 132 KV transmission line. Likewise, India has agreed to build the Kohalpur-Nanpara 132 km transmission line on the request by Nepal and would be starting the feasibility study of the site.

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