Kathmandu— Experts in Nepal's energy sector emphasized the crucial role of private sector involvement in expanding the country’s electricity market during a recent discussion hosted by the Independent Power Producers Association of Nepal (IPPAN) in Lalitpur, asserting that relying on a single entity to manage large-scale power trade is not feasible. Participants highlighted that current legislation, specifically the Electricity Act of 2049, already allows for the issuance of hydropower generation licenses to private companies, negating the need for new laws. The event focused on Nepal-India energy trade and explored pathways for increased private sector participation.

Government Commitment to Hydropower Development

Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, affirmed the government’s dedication to utilizing Nepal's abundant water resources for hydropower generation as a means of driving economic prosperity. He stated that the government is committed to forging partnerships with the private sector in this endeavor. According to the Minister, Nepal earned Rs 29 billion from electricity exports and saved over Rs 18 billion during the last fiscal year.

Existing Legal Framework Sufficient

Former energy secretary Anup Kumar Upadhyay pointed out that a draft law concerning the issuance of licenses for private power production exists but remains unimplemented. Prabal Adhikari, former deputy executive director at the Nepal Electricity Authority, explained that the current legal framework already encompasses provisions for both the sale and import of electricity, allowing licenses for related business activities to be granted to private sector entities based on existing regulations.

Priorities for Reliable Export Market

Stable policies, effective regulation, increased private sector engagement, and strategic energy diplomacy are being prioritized to establish Nepal as a reliable exporter of electricity. Experts believe these elements are essential for fostering a competitive electricity market and maximizing the potential of hydropower resources.

The discussion underscored the importance of continued collaboration between the government and private sectors to unlock the full potential of Nepal’s energy sector and solidify its position in regional energy trade.

(With inputs from RN)

Originally published on abcnews.com.np.