India, Nepal agree to set up ‘energy bank’

India, Nepal agree to set up ‘energy bank’

India and Nepal have agreed to set up an energy banking mechanism to prevent spilling of electricity when production surpasses demand, according to The Kathmandu Post.

The two countries agreed to the ‘Nepal-India energy banking deal’ at the 13th meeting of the Power Exchange Committee held in New Delhi on Tuesday.

The state-owned power utility, Nepal Electricity Authority (NEA), and India’s Central Electricity Authority have agreed to the draft guidelines, which would be presented for approval before the energy secretary-level joint steering committee’s meeting in January, according to the report.

The banking system would involve exchanging electricity for electricity instead of cash. Under this, one country exports electricity to the other when it has a surplus, and imports back the same amount of energy when it has a deficit. Read More

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