India and Nepal Note Positive Developments in Cross-border Energy Trade, Discuss Potential Energy Cooperation under BBIN

2 April 2022

India Prime Minister Narendra Modi and Nepal Prime Minister Sher Bahadur Deuba held bilateral talks on 2 April 2022 in New Delhi, India, focusing on power sector cooperation between India and Nepal. Nepal Prime Minister Deuba lauded India for its enabling cross-border electricity trade regulations that have made it easier for key partners including Nepal to access India's energy market and engage in power trade. They also noted the potential to expand energy cooperation to include their neighbors in the subregion under the Bangladesh-Bhutan-India-Nepal (BBIN) framework.

The news release underscored that the meeting between the two leaders acknowledged positive developments in each other's power sectors. India congratulated Nepal on becoming a near power surplus country.

Both Prime Ministers agreed on the huge potential to expand and further strengthen their mutually beneficial bilateral cooperation in the power sector, such as through the following:

  • Jointly developing power generation projects in Nepal,
  • Development of cross-border transmission infrastructure,
  • Bi-directional power trade with appropriate access to electricity markets in both countries based on mutual benefits, market demand, and applicable domestic regulations of each country,
  • Coordinated operation of the national grids, and
  • Institutional cooperation in sharing the latest operational information, technology and know-how.

Renewable energy was also highlighted. They pledged to make renewable energy, hydropower in particular, central to their energy partnership. India's investment into Nepal's renewable energy sector, including hydropower, can mutually benefit them by boosting their economies and generating employment, increasing export earnings, contributing to further development of industrial and financial capacities, and mutually agreed to share other benefits.

Read the full press release.


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