Nepal, India agree to sign much-awaitedenergy banking deal
Nepal, India agree to sign much-awaitedâenergy bankingâ deal
Published: 10:40 am Dec 28, 2018
Kathmandu, December 27 Nepal and India have agreed to ink the much awaited âenergy bankingâ deal, which will ensure uninterrupted exchange of power between the two countries. The 13th meeting of the Power Exchange Committee (PEC) held in New Delhi, India on Wednesday has agreed to seal the Nepal-India energy banking deal. The draft of this agreement is expected to be approved by the energy secretary-level joint steering committee meeting scheduled for January. Nepal had long been demanding the energy banking deal with India in a bid to ensure that the country is able to export its surplus electricity to India, especially during monsoon and import power from the southern neighbour when necessary. The energy banking mechanism allows Nepal to export power to India amid surplus generation and import the same amount of power when necessary. Following the agreement at this level, Kulman Ghising, managing director of Nepal Electricity Authority (NEA) and the leader of Nepalâs delegation at the PEC meeting, said that energy banking agreement between Nepal and India will prove crucial to enhance bilateral energy trade. The PEC meeting has also agreed on the draft guideline of the energy banking mechanism that incorporates methodology and structure of energy banking. âThe agreement has been forged on the guideline prepared for energy banking and will be implemented following approval from the secretary-level joint steering committee meeting,â said Ghising, adding that the decision to ink the energy banking deal with India is a âmilestone achievementâ in the history of Nepalâs hydropower industry. Meanwhile, NEA Spokesperson Prabal Adhikari, informed that Nepal also proposed for an âenergy bookâ for the first five to seven years with India and India was positive in this regard. âNepal will book for energy in the first five to seven years as it will take almost four years to construct the transmission line. The model of the investment mechanism will be finalised by the joint steering committee meeting,â said Adhikari. Currently, NEA has been purchasing electricity from India on a need basis from Bihar, Uttar Pradesh and Uttarakhand under the âpurchase and payâ mechanism.