At the 13th Joint Working Group (JWG) and Joint Steering Committee (JSC) meetings in Pokhara, India and Nepal will be reviewing important bilateral energy projects. One of the most anticipated agenda items is the Phukot Karnali Hydropower Project, which is being advocated by the NHPC. Hydropower development, international power commerce, and long-term energy cooperation will be the topics of the two-day talks.
The Nepal Supreme Court has ordered the government to amend the Phukot Karnali Hydropower Project’s Memorandum of Understanding (MoU), which is a big deal that will certainly get some attention. According to the court’s order, Nepal’s existing share of free electricity—21.9%—must be increased in line with the country’s investment in the project. The order has cast doubt on the project’s ability to generate revenue.
The altered terms may impact the project’s financial sustainability, which is why NHPC Limited is hesitant to implement the court’s order. The Nepalese capital is in a tough spot, having to balance protecting national interests with attracting more foreign investment in the hydropower sector, all while responding to calls from Nepal Vidyut Utpadan Company Limited to seek a review of the ruling.
In addition to the Phukot Karnali project, the two parties will assess the development of cross-border transmission lines, including as the 400 kV Dhalkebar-Sitamarhi and New Butwal-Gorakhpur lines. The Inaruwa-Purnea and Dododhara-Bareilly 400 kV transmission routes are set to be completed by 2030 and will allow Nepal to export an extra 5,000 MW of power to India. They will also evaluate the implementation of these corridors.
The sessions will also assess the implementation of the long-term power trade deal between Nepal and India, which was inked in January 2024. As part of this agreement, India committed to importing a maximum of 10,000 MW of power from Nepal over the following ten years. Timely construction of transmission infrastructure is critical for Nepal to achieve future export ambitions, as the country already exports approximately 1,000 MW of electricity to India during the monsoon season.
Green hydrogen development, collaboration in the renewable energy sector, and the growth of bilateral power markets will also be on the agenda for official discussion. Strengthening regional connectivity, supporting sustainable energy transitions, and boosting energy security for both countries are all goals of the expanding partnership, which highlights the strategic relevance of energy cooperation.
Image: FPJ
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