Under the partnership, the two governments will set up a mechanism to share their expertise and explore potential for investment in electric power development and new energy industries.
The governmental entities and public authorities from both countries will work together on potential projects.
The partners will primarily focus on electric power development, renewable energy, smart grids and power information and technology, transmission and distribution of electric power, energy efficiency and energy storage systems, among others.
India Prime Minister Narendra Modi said in a statement: "The memorandum of understanding (MoU) is also expected to take forward development in the power sector for providing equitable access to reliable electricity supply to consumers through bilateral cooperation."
With this partnership, the countries will be able to improve security and reliability of energy supply, as well as enhance energy access and ease sustainable economic growth.
