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Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has said Nepal must develop transmission and distribution infrastructure in a balanced and coordinated manner alongside power generation to make the energy sector a key pillar of economic transformation.

Speaking at an event organized to mark the 11th anniversary of the National Transmission Grid Company Limited, Minister Shrestha said Nepal has entered a decisive phase in expanding electricity generation, transmission, domestic consumption and cross-border power trade. He stressed the need to prioritize modern, reliable, safe and adequately capable transmission systems to fully benefit from increased power generation.

He said increasing electricity generation alone would not deliver the expected economic returns unless production, transmission and distribution infrastructure were developed in an integrated manner.

“Growing electricity generation is a positive achievement, but we cannot reap its full economic benefits unless we can transmit the generated power reliably and increase its consumption in productive sectors,” he said.

Minister Shrestha said the government has adopted a policy of developing electricity as a major driver of industrialization, job creation, increased production and broader economic transformation. He said policy and infrastructure arrangements would be made to increase electricity consumption in industries, agriculture, irrigation, electric transportation, information technology and other productive sectors.

He said Nepal has significant potential to earn foreign currency and increase the power sector’s contribution to the national economy by exporting surplus electricity to regional markets. Connecting Nepal’s hydropower potential to regional energy markets could make the electricity sector an important foundation for economic prosperity, he said.

Shrestha said expanding high-capacity transmission lines, substations and cross-border transmission infrastructure would require substantial investment. He stressed the need to effectively mobilize the private sector, development partners, financial institutions and international cooperation alongside public sector investment.

He also said modern technology was essential to ensure that the transmission system can meet future electricity generation and demand. Modern grid management systems should be adopted to make the transmission network more reliable, efficient and sustainable, he said.

Minister Shrestha said the government was committed to developing open access to the transmission system, transparent regulatory arrangements and cost-based transmission services to create a competitive and dynamic electricity market. He also stressed the need for clear, stable and investment-friendly policies to attract investment in the energy sector.

He said the National Transmission Grid Company Limited should further strengthen its institutional capacity and play an effective and leading role in developing strategically important transmission infrastructure in line with its founding objectives.