Nepal Govt opens energy sector for private investments

The Nepal Government has cleared the way for private players to enter the Himalayan nation’s energy sector, said Federal Minister Biraj Bhakta Shrestha on Friday.

Speaking at the annual general meeting of the Independent Power Producers’ Association, Nepal (IPPAN) in Kathmandu, the Energy Minister said that the private sector will now be involved in transmission, distribution, and trading of power.

IIPAN is a non-profit autonomous organisation that works with the Government in the sectors of energy and irrigation.

The Government has started amending laws hindering energy development and discouraging investment in the sector, he said, adding that the government will also introduce bills related to renewable energy and energy efficiency in the ongoing Parliament session.

At the event, President of IPPAN Ganesh Karki requested the Government to introduce rules and regulations helpful in the creation of a conducive environment for private investments in the hydro-power sector.

The private sector is willing to work with the government to achieve the target of generating 28,500 MW of electricity by 2035 in order to achieve the aim of exporting 10,000 MW of hydropower to India, he said.

The minister said that the Government is working towards establishing the energy sector as the main basis for economic transformation through the current fiscal year.

Initiatives to promote entrepreneurship, employment generation, create an investment-friendly atmosphere and economic transformation of the country, he said, adding that the government is prioritising the construction of transmission lines and sub-stations, and has allocated around Nepalese Rupees 70 billion budget for the same.

Nepal is currently generating 4,300 MW of electricity, of which the private sector alone contributes 3,466 MW, according to Karki.