Finance Minister Dr. Prakash Sharan Mahat has said that the contribution of the private sector to electricity generation is extremely important. He made this remark while addressing the closing ceremony of Power Summit-2023, started on Tuesday with the theme ‘Broadening Green Energy Markets,’ organised by Independent Power Producers' Association (IPPAN).

The two-day summit was inaugurated by Prime Minister Pushpa Kamal Dahal 'Prachanda'. FM Dr. Mahat said, 'Before the 90s, one or two megawatts of electricity were generated. When the private sector became involved in power generation, power added to national transmission increased, helping the country meet its growing power needs. So, the contribution of the private sector to energy production has been significant."

Private sector investors are attracted to hydropower development after seeing the potential of energy, he said, adding that with energy being produced by the private sector, Nepal has not only become self-sufficient, but has also started exporting electricity. "It is good news for us that the country has started exporting electricity. It is also attracting investors to increase their investment in hydropower development," said Dr. Mahat. The Finance Minister requested national and international investors to invest in hydropower in Nepal and assured them of all helps needed.

Since the government has prioritised energy for investment, he said, the government is ready to solve the problems faced by investors in Nepal.

"We are ready to give incentives to investors. Recent investments by the private sector have been good in energy. Energy is a major source of the country's income," he said. He said, "The government will create a mechanism to export electricity to India. Bangladesh is another big market for electricity," he said. After the electricity trade agreement with Bangladesh, it can be exported to that country, he said.

Even big investors like the World Bank are willing to invest in Nepal's energy sector, he said, and added that many other companies willing to invest in electricity production are in the pipeline. Minister Dr. Mahat said that it was necessary to focus on increasing domestic consumption of electricity.

"We have to maximise use of electricity in transportation, cooking and industrial areas. If we use electricity in transportation and cooking, it will help to reduce the import of petroleum products and LPG, and narrow down the trade deficit," he said.

More than 300 domestic and foreign representatives from different countries, including India, Bangladesh, Bhutan and Sri Lanka, participated in the summit.

In the summit, about a dozen sessions were conducted to discuss Nepal's electricity market, transmission infrastructure, electricity demand, technology, innovation and electricity trade.