Private sector is vital to expanding Nepal’s electricity market, say experts

KATHMANDU: Energy experts said the private sector is vital to expanding Nepal’s electricity market and the government should heed its concerns.

The views were presented at a discussion on “Nepal-India Energy Trade: The Way Forward for the Private Sector”, organised by the Independent Power Producers' Association, Nepal (IPPAN) in Lalitpur today. Speakers said no new legislation is needed to widen the sector as licences for hydropower generation can be issued under the existing Electricity Act, 2049.

Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said the government is committed to economic growth by harnessing the country’s water resources for hydropower. He said the government seeks partnership with the private sector and noted that Nepal earned Rs 29 billion from electricity exports and saved over Rs 18 billion in the last fiscal year.

Speakers said stable policies, effective regulation, private sector engagement and strategic energy diplomacy are essential to secure Nepal’s reputation as a reliable electricity exporter.

Former energy secretary Anup Kumar Upadhyay said a draft law on issuing licences for private power production exists but a final decision has not been taken. Prabal Adhikari, former deputy executive director at Nepal Electricity Authority (NEA), said the current law already contains provisions for the sale and import of produced electricity, allowing licences for private businesses under existing regulations.