Private Sector Key to Expanding Electricity Market, Say Energy Experts

Experts in the energy sector have said the private sector plays a vital role in expanding the country's electricity market, urging the government to heed its concerns. They said no new legislation was required to facilitate expansion of the energy sector, as licenses for hydropower generation can be issued to the private sector under the existing Electricity Act, 2049.

The views were expressed at a discussion on 'Nepal-India Energy Trade, The Way Forward for the Private Sector', organised by the Independent Power Producers' Association of Nepal (IPPAN) in Lalitpur. Speakers said private sector involvement is instrumental in fostering a competitive electricity market, adding that large-scale power trade cannot be managed through a single entity.

Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha reiterated the government's commitment to economic prosperity by leveraging the country's water resources for hydropower, and said the government favours building partnerships with the private sector in this endeavour. The country earned Rs 29 billion from electricity exports and saved over Rs 18 billion in the last fiscal year, the Minister said, stressing stable policies, effective regulation, private-sector engagement and strategic energy diplomacy to ensure Nepal remains a reliable electricity exporter.

Former energy secretary Anup Kumar Upadhyay said a law on issuing power production licenses to the private sector had been drafted earlier, but a decision on it is yet to be made. Former NEA deputy executive director Prabal Adhikari said since the current law already includes provisions for the sale and import of electricity produced, licenses could be granted to the private sector for business based on these existing provisions.