Memorandum Of Understanding (MOU) Between The Iceland And Himachal Pradesh

The Himachal Pradesh government announced that firewood costs will be reduced from Rs 1,300 per quintal to Rs 805 per quintal, providing significant assistance to the state's indigenous population.  The tribal people of the state are mostly concentrated in the districts of Lahal, Spiti, Kinnaur, and sections of Chamba. Due to the regular landslides on the strategically vital Hindustan-Tibet Highway (National Highway No. 5), army troops, farmers, and horticulturists are enduring challenges.

Memorandum of understanding (MOU) with the Iceland

• On November 18, the Himachal government indicated it would sign a memorandum of understanding (MOU) with the Icelandic government for the development of cold storage facilities using geothermal energy. 
• The government has agreed to offer the State Forest Corporation a subsidy by lowering firewood costs by around Rs 500 per quintal. 
• This subsidy would allow indigenous people to purchase firewood from the corporation for Rs 805 per quintal, as opposed to Rs 1,300 per quintal previously.

What is geothermal energy?

• Geothermal energy is a renewable energy source derived from the Earth's core. 
• It is caused by heat generated during the formation of the planet and radioactive decay of components.
• It is a renewable energy source since heat is constantly created within the earth's crust. 

Sources of Geothermal Energy

• Geothermal power plants are typically built within two miles of a geothermal resource. 
• The steam from these reserves is utilised to either directly power the turbines of an electrical generator or to heat water, which then creates steam for the process.
• Drilling is used to reach deep underground pools of hot water or steam.
• Geothermal reservoirs are found near the earth's surface, mostly in the western United States, Alaska, and Hawaii.
• The shallow earth near the Earth's surface remains largely constant around 50-60°F.