Government Shows Positive Approach to Private Sector Participation in Electricity Trade

Energy Minister Biraj Bhakta Shrestha has stated that the government is positive about involving the private sector in electricity trade. He said, “The government is studying the necessary policy arrangements to enable the private sector to sell electricity in international markets.” Officials from the Independent Power Producers’ Association Nepal (IPPAN) have requested the government to make legal reforms to incorporate the private sector in electricity trade. 8 Shrawan, Kathmandu.

Minister Shrestha emphasized that private sector participation in electricity trade has become essential to competitively expand Nepal’s clean, green, and reliable regional electricity market. He informed that the government is examining whether existing legal provisions are sufficient or if new legislation is needed for this purpose.

During a discussion on Friday with officials from IPPAN, he mentioned that the government is positive about granting the private sector the necessary permissions to explore international markets through a coordinated ‘Business-to-Business’ (B2B) model with the Nepal Electricity Authority. Minister Shrestha also stated that the government has prioritized transmission line expansion and expressed confidence that the development of the energy sector will make a significant contribution to the country’s economy.

In the discussion, former Secretary Dinesh Ghimire, IPPAN President Mohan Dangī, former President Ganesh Karki, and Senior Vice President Uttam Blon urged the government to create a competitive electricity market, manage power purchase agreement pressures, and implement necessary policy and legal reforms to legally incorporate the private sector in electricity trade.