Minister for Energy, Water Resources and Irrigation, Deepak Khadka, has said that private sector participation will now be ensured in electricity trade.

While receiving the report submitted by the Electricity Trade Study and Recommendation Committee, formed under the coordination of former Secretary Dinesh Kumar Ghimire, Minister Khadka highlighted the need to provide equal opportunities not only to the government but also to the private sector in both domestic and cross-border electricity trade in order to fully utilize Nepal’s hydropower potential.

Stating that the participation of the private sector in both electricity export and import processes will enhance competition, efficiency, and investment, Minister Khadka said that this will make a significant contribution towards achieving Nepal’s target of generating 28,500 megawatts. He further expressed that Nepal can advance not only as a consumer but also as a supplier of electricity at the regional level.

The committee has suggested that in order to systematize electricity trade and link it with a long-term strategy, operations should be carried out through a separate company for domestic and cross-border trade, necessary policies and existing laws should be amended, transmission infrastructure should be strengthened, and access to regional markets should be ensured.

In addition, the report also includes detailed studies on measures to promote private sector investment, cooperation with friendly nations, and the prospects of bilateral, trilateral, and multilateral trade models.

The report was prepared and submitted to Energy Minister Khadka by representatives from the Ministry of Energy, Water Resources and Irrigation, the Department of Electricity Development, the Electricity Regulatory Commission, the Nepal Electricity Authority, experts, and the Independent Power Producers’ Association Nepal (IPPAN).

Energy experts have described the cooperation between the government and the private sector as a historic step, expressing the expectation that it will strengthen Nepal’s long-term energy strategy, create a competitive environment, and make a significant contribution to strengthening the national economy.

Source: Nepal Purbadhar