Nepal Earns 3 Billion NPR from Electricity Exports Amid Growing Concerns Over Market Expansion
Energy Minister Biraj Bhakta Shrestha informed at an event organized by the Nepal Electricity Authority on Monday that Nepal is now capable of exporting electrical energy worth nearly 3 billion Nepalese rupees. He described last fiscal year’s electricity trade figures in foreign markets as not merely an achievement but also as proof that “Nepal is undergoing transformation.” However, some experts in the energy sector pointed out that despite these positive figures, there is still insufficient assurance regarding sustained foreign market access and expansion in domestic consumption alongside the continuously increasing production. They cautioned that as production rises without corresponding market and consumption growth, the risk of electricity being wasted uncontrollably could increase. This issue has particularly manifested in recent years with a noticeable rise in electricity wastage during the rainy season.
“An excess production of around one or two hundred megawatts can be considered a non-problematic reserve,” said Mohan Dangi, President of the Independent Power Producers’ Association Nepal (IPPAN). “However, as new production capacity continues to be added, this issue could become a major challenge.” Former Executive Director of the Nepal Electricity Authority, Hitendra Dev Shakya, highlighted delays in expanding the transmission and distribution systems over recent years in response to private sector demands related to electricity trade and transmission. “The private sector is already capable in electricity production, so the primary focus now should be on transmission and distribution infrastructure, but requisite ‘attention’ and ‘urgency’ in these areas are lacking,” he stated.
Energy producers have long called for allowing private sector participation not only in production but also in market expansion and transmission line construction to prevent electricity wastage. “Indian traders are also willing to assist in electricity trade, and the private sector has gained experience in constructing major transmission lines from hydropower plants,” noted IPPAN President Dangi. Sandeep Kumar Dev, spokesperson for the Ministry of Energy, revealed that the legal amendment process to permit private sector involvement is underway. “A new Electricity Act was presented to Parliament but was stalled due to its dissolution. Efforts are now being made to reintroduce the bill, which will include provisions for private sector participation,” said Dev.
