US Federal Energy Regulatory Commission (FERC) is close to signing a memorandum of understanding (MoU) with Central Electricity Regulatory Commission (CERC) to share its experience in the capacity market.

US FERC’s chairman Neil Chatterjee said that CERC can benefit from the US experience on competitive markets.

“The CERC is our counterpart at the US FERC and they are looking to learn from US about how to set up competitive wholesale electricity markets. We in the US have two decades of experience with capacity markets, energy markets, markets for ancillary services and we are working very closely with our Indian counterparts because we have seen the benefits first-hand in the US of competitive markets and believe that our allies in India can benefit from the US experience,” said Chatterjee in an interaction with CNBC-TV18.

“We think that energy is at the core of the bilateral conversations and the relationship between US and India," he said, adding that if India and the experts at CERC can move towards establishing these competitive wholesale markets, that will provide opportunities for the US.

"The US is a net exporter of the energy, and for the first time in 60 years, we are becoming a leader in the liquefied natural gas (LNG) export market. We think that is an opportunity to aide an ally like India,” he added.

Speaking about the collaboration, Chatterjee said, “Both the US and India have expressed desire to engage in this area. We think that the US being a player in the LNG market has positive economic benefits, has positive geopolitical benefits for both countries. They are allies and the US being an alternative market for India is beneficial to both countries geopolitically, and there is also positive environmental benefit.”