Govt mulls allowing cross-border electricity trade by Nepali private hydropower producers

Published On: December 18, 2021 06:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 18: The government is mulling over involving private sector hydropower producers in cross-border electricity trade, at a time when Bangladesh has expressed its will to purchase electricity from the Nepali private sector.

According to an official of the Ministry of Energy, Water Resources and Irrigation, the ministry, in this regard, has started discussions with the stakeholders to formulate a directive. The ministry is considering fixing the criteria for the private hydropower producers that include the net worth and capital base of the companies concerned, the source said.

Targeting to carry out cross-border electricity trade, Nepal Infrastructure Bank, Independent Power Producers’ Association Nepal and Nepal Electricity Authority have already set up their subsidiaries. However, due to the lack of related laws, these organizations have failed to materialize their plans.

Meanwhile, India has endorsed related laws to conduct cross-border energy trade. Recently, during a meeting with delegates from the Confederation of Nepalese Industries, Bangladeshis authorities also expressed their interest to purchase electricity produced by the Nepali private sector.  


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