Experts have stated that policy interventions are necessary to increase investment in the energy sector at the South Asia (BIN) Power Summit 2025, held in Kathmandu, India.

The summit organized by the Confederation of Indian Industry (CII) in New Delhi was attended by long-standing energy entrepreneurs and government officials from the energy sectors of Bhutan, India, and Nepal (BIN).

Representing Nepal’s private sector, a five-member team led by Mohankumar Dangi, Senior Vice President of the Independent Power Producers’ Association, Nepal (IPPAN), participated in the summit. On behalf of government officials, a team led by Nutan Kumar Sharma, Joint Secretary at the Ministry of Energy, Water Resources, and Irrigation and Deputy Director General of the Department of Electricity Development, also took part.

Joint Secretary Sharma, while sharing his views at the inaugural session of the summit jointly organized by the Confederation of Indian Industry and the Ministry of External Affairs, stated that Nepal is capable of producing the clean energy necessary to meet South Asia’s electricity demand.

Speaking at the session titled “Accelerating Investment in the Power Sector: Intervention Required,” IPPAN Senior Vice President Mohan kumar Dangi stated that policy interventions are necessary in the BIN countries to rapidly increase investment in the energy sector.

Recalling that the Government of Nepal has set a target to achieve 28,500 megawatts of electricity production by 2035, Senior Vice President Dangi highlighted that an investment of USD 4.65 billion is required for this and urged BITUB investors to bring their investments to Nepal.

Dangi stated that there is a huge demand for clean energy in India and Bangladesh, and given Nepal’s vast potential for hydropower generation, Nepali energy producers are capable of meeting the clean energy demand of India and Bangladesh through mutual cooperation among the BIN countries.

He also stated that Nepal currently has an electricity generation capacity of 4,000 megawatts, with projects totaling 5,500 megawatts under construction led by the private sector, and another 3,000-megawatt capacity projects in the final stages of financial arrangement before construction. In addition, Dangi mentioned that the private sector is conducting studies on hydropower projects with a combined capacity of another 20,000 megawatts.

Speaking at the session titled “Strategizing for Enhancing Energy Cooperation through Border Power Trade,” IPPAN Vice President Ashish Garg stated that, over the past two years, electricity demand in the BIN region has been increasing, making it necessary to expand power trade.

Participating in the same session, Deputy Managing Director of Nepal Electricity Authority, Subash Kumar Mishra, stated that although there are some challenges in BIN power trade, with proper planning and specific strategies, the trade can be accelerated.

Garg expressed the view that to promote open access and power trade, proper planning is needed in generation, distribution, and transmission. He emphasized that structural, commercial, and regulatory aspects must involve policy interventions to prepare for a broader power trade scenario.

Speaking at the session titled “Creating a Framework to Promote Power Exchanges: Challenges and Opportunities,” IPPAN Vice President Uttam Blon Lama stated that although power trade was traditionally conducted on a long-term basis, under India’s new cross-border power trade guidelines, it is now possible to conduct daily inter-country electricity trade through the Day-Ahead Market (DAM).

Lama further stated that Nepal is currently exporting over 1,000 megawatts of electricity to India and 40 megawatts to Bangladesh. He added that the revenue from electricity exported to Bangladesh remains stable, while electricity trade with India occurs both through stable contracts and the Day-Ahead Market.

He noted that, at present, electricity trade in this sector is being conducted only by the Nepalese government, while the private sector has completed all preparations and is awaiting permission to participate in power trading.

Lama stated that, since cross-border electricity exchange is still in its early stages, it is necessary to develop appropriate strategies to increase the participation of power exchanges in this sector.

Biznessnews