Nepal and India agree to set of institution for energy banking. Both the countries agree to set up an institution during the sixth secretary level Joint Steering Committee (JSTC) meeting held in Pokhara.

According to Water Energy, Water Resources and Irrigation secretary Dinesh Kumar Ghimire, energy banking was one of the main agenda of the meeting. JSTC meeting endorse the proposal prepared by Nepal Electricity Authority and Central Electricity Authority of India last month.

“Now the road to energy banking has opened,” said secretary Ghimire. This is a major achievement for us as it will address our concern to sale energy as part the cost of energy.”

Secretary Ghimire said that nature of power generation encourages both the countries to go for energy banking. “Nepal has high demand in winter and low production and India has high demand in summer and low demand in winter. After this agreement, we can sale our energy to India during wet session, “said secretary Ghimire.

After this approval, the energy banking will start from Dhalkebar-Mujffarpur 400 kV Cross Border Transmission line. Nepal Electricity Authority has already signed PPA with the projects with capacity of 2500 MW run of the river and 2500 MW Picking Projects.

After the completion of these projects, almost 2500 MW energy generated by picking projects will go waste. However, this agreement saves NEA Rs.84 billion rupees. The meeting also agreed to install 50 MVA transfer in Tanakpur and India will provide additional 80 MW power. This will solve the power crisis of far-western province. Currently, Nepal is importing 30 to 35 MW energy from India through Tanakpur.

India also agreed to support Nepal to enhance the capacity of 132 kV Raxaul-Parwanipur and Kataiya Kusaha Transmission line to end the electricity fluctuations in the region. Currently, Nepal is importing 50 MW each from both the transmission line.

Similarly, India also agreed to provide access to Nepal within 500 meter of India in Nautanuwa to improve the capacity of transmission line. After the completion of 132 kV Transmission line, power supply in Bhairahawa Industrial sector will improve. Nepal will invest money to improve the transmission line.

As per the demand of Nepal, India agrees to construct 132 kV Kohalpur Nanpara Transmission line on India’s grant. However, both the countries agree to further discussion on New Butwal Gorakhpur 400 kV cross border Transmission line.