Nepal and India have agreed to set up an 'Energy Banking' mechanism that would help the Himalayan country export its surplus electricity to neighbor India during the monsoon season and import power during its lean season in winter.
Nepal’s demand for electricity reaches its peak during the summer months, but production slumps to one-third of demand. Likewise, in India demand reaches its peak during the monsoon season and slumps during winter. Following the agreement, Nepal will export its surplus electricity to India during the monsoon season.
The Energy Banking agreement would be initiated from newly-constructed Dhalkebar-Mujaraffpur 400 KVA transmission line. As per the agreement, India has also agreed to provide up to 80-megawatt electricity to Nepal, through setting up a temporary 50 MVA capacity temporary transformer at Tanakpur. India has agreed to set up a new transformer within two months. At present, Nepal is able to import only 30 to 35-megawatt electricity from Tanakpur.
Aiming to make Nepal’s electricity mechanism strong and stable, the Indian side has agreed to extend the capacity of the Raksaul-Parwanipur and Kataiya-Kusaha 132 KV transmission line.
Source: New Kerala