What happened?
Nepal’s Foreign Minister Arzoo Rana Deuba, during the Nepal-India Strategic Dialogue in Kathmandu, emphasised that green energy cooperation, particularly through clean and sustainable energy sources, will strengthen interdependence between Nepal and India. She highlighted India’s commitment to importing 10,000 MW of electricity from Nepal over the next decade, an agreement signed in January 2024. Deuba also stressed the importance of enhancing connectivity through investments in various infrastructure projects such as roads, railways, waterways, airways, and digital infrastructure.
Why it matters to India
This emphasis on green energy cooperation holds significant importance for India as it seeks to diversify its energy sources and strengthen regional energy security. The long-term agreement to import 10,000 MW of electricity from Nepal over the next 10 years directly contributes to India’s energy demands and renewable energy targets. Nepal’s substantial hydro-potential offers a clean, climate-resilient, and renewable energy source that can be harnessed for generations, aligning with India’s efforts to transition towards sustainable energy. Enhanced connectivity through infrastructure investments will further integrate the two economies, facilitating trade and movement of goods and services, which is particularly crucial for land-locked Nepal’s reliance on India. This collaboration not only secures a stable energy supply for India but also strengthens bilateral ties and regional stability.