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Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has stressed the need to prioritise increasing domestic electricity consumption and expanding power exports to maximise the economic benefits of electricity generation.

Addressing the 41st anniversary of the Nepal Electricity Authority (NEA) on Monday, Minister Shrestha said the government was working to provide reliable electricity to household consumers at affordable rates and stable tariffs to productive industries.

He said electricity was no longer merely a means of lighting homes but a foundation for employment, industry, agriculture, education, health and overall economic transformation.

The government is also working to introduce seasonal electricity tariffs to maximise the use of surplus power generated during the rainy season, he said.

Shrestha said the focus should now shift from merely increasing electricity generation to creating economic and social value from the produced power.

He said the government was simultaneously working to boost domestic consumption, strengthen transmission and distribution systems and expand access to external electricity markets.

According to the minister, electricity access has reached 97.6 per cent of the population, with more than 5.92 million customers connected to the national grid. Per capita electricity consumption has reached around 465 kilowatt-hours, while Nepal is now capable of exporting electricity worth nearly Rs. 30 billion.

He said that the government was accelerating the construction of strategic transmission lines, substations, grid infrastructure and cross-border transmission systems.

It also aims to expand electricity exports to third-country markets and help reduce the widening trade deficit of the country.

Shrestha said modernising the distribution system would be another major priority.

He said that the replacement of old and dilapidated structures, enhancement of system capacity, use of smart technology, control of electricity leakage, demand management, and expansion of digital technology in service delivery should no longer be an option but a necessity.

Minister Shrestha said that the authority should not be established as a monopoly in the name of strengthening it, but should be made an institution based on institutional capacity, competitive efficiency and public accountability.

Stating that the private sector is bearing huge investment and risks in energy development, he said that it is the responsibility of the state to protect and promote private sector investment.

The minister also said the government was committed to ending the long-standing “licence raj” meaning holding liecence of the projects without developing them and establishing a fair, transparent and competitive system for project development.

Similarly, he said that the government is clear about resolving the long-standing dispute over the collection of electricity tariff arrears in a legal and lawful manner. He said that the authority management is also working on the collection of arrears by keeping it on its regular agenda.

Member of National Planning Commission (NPC) Dr. Sudan Jha stressed on the need of promoting energy mix for ensuring energy security.

"It is a must to promote solar and other sources of renewable energy for energy security as dependence only on hydropower is not reliable for being self-reliant in energy and energy security as well," he said.

Secretary at the Ministry of Energy, Water Resources and Irrigation Sarita Dawadi asked the NEA officials for providing quality service to the consumers along with priority production, transmission and distribution of electricity.

President of the Federation of Nepalese Chambers of Commerce and Industry Anjan Shrestha said that the problems in the energy sector should be resolved immediately for the country’s economic prosperity.

Shrestha said the dedicated and trunk line dispute has been raging for years displaying the country’s incompetence.

Stating that it is sad that a problem cannot be resolved even after 10 years, he said, "Everyone may be partly to blame for the problem not being resolved after 10 years, but this has created a negative image of businessmen in society. This problem must now end forever."

Mohan Kumar Dangi, president of the Independent Power Producers Association of Nepal (IPPAN), demanded that the private sector be allowed to trade in electricity.

Dangi said that the private sector, which entered the energy sector since 2055 BS, now accounts for 80 per cent of production and has also proven its capacity in constructing transmission lines.

"We are ready to generate electricity and give it to the NEA, but if the NEA cannot trade at this level, then it should not delay in giving a business licence to the private sector," he clarified.

He said that the journey of the private sector, which started with 1-2 megawatts, has now reached the level of building projects up to 440 megawatts.

So far, the NEA has signed PPAs for 12,000 MW, of which 3,500 MW has been produced by the private sector, while 6,200 MW is under construction and 2,300 MW is in the financial management phase.

President Dangi proposed that the design of projects should be improved for maximum utilisation of water resources.

He said that if the current ‘Q40’ design is changed to ‘Q25’, the production capacity will increase by 85 per cent and it will also reduce the cost of electricity.