Nepal Government Open to Private Sector Participation in Electricity Trade

Nepal’s Energy, Water Resources, and Irrigation Minister, Biraj Bhatta Shrestha, has stated that the country’s clean, green, and reliable electricity sector needs to expand competitively in the regional market, making private sector participation necessary.

He informed that the government is currently studying whether the existing legal framework is sufficient or if new laws are required to facilitate this.

Government Positive on Private Sector Participation

During a discussion with officials of the Independent Power Producers’ Association of Nepal (IPPAN) on Friday, Minister Shrestha said that the government is positive about allowing the private sector to work in coordination with the Nepal Electricity Authority to explore international markets through the ‘Business-to-Business’ (B2B) model.

He assured that the private sector’s participation would not affect the authority’s role or the state’s interests.

Minister Shrestha expressed confidence that the development of the energy sector would make a significant contribution to the country’s economy and stated that the government has prioritized the expansion of transmission lines.

IPPAN Officials Meet with Minister

During the discussion, former Secretary Dinesh Ghimire, IPPAN President Mohan Dangi, former President Ganesh Karki, and Senior Vice President Uttam Blon urged the government to create a competitive electricity market, manage PPA pressure, and make necessary policy and legal reforms to allow the private sector to participate in electricity trade legally.

IPPAN President Dangi emphasized that private sector participation in electricity trade and transmission systems is no longer an option but a necessity, and the government should adopt policies to encourage genuine investors.

IPPAN Senior Vice President Blon presented a presentation, stating that a competitive market with multiple buyers and sellers would help in determining the correct price of electricity and expanding the market.

He stressed that it is essential to have a system in place to sell Nepal’s electricity in the regional market at the right time, price, and demand.

Blon requested the government to open up legal avenues for the private sector to enter electricity trade, even if it requires amending some Nepal Acts.