Kathmandu: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has issued time-bound directives to concerned agencies, along with a detailed action plan, aimed at structural reforms in the energy and water resources sector, enhancing transparency, and making performance more results-oriented.
A 32-point directive has been introduced, covering a wide range of areas from electricity market reform to strengthening irrigation systems. The ministry has clearly assigned responsibilities to relevant bodies to ensure all action plans are implemented within the stipulated deadlines, with regular and intensive monitoring to follow.
“After extensive groundwork and in-depth consultations with stakeholders, this directive has been issued to strengthen the water resources and energy sector,” the minister said. “This is not just for show—our policies, plans, and programs will now be guided by it. Therefore, I instruct all subordinate agencies and staff to complete tasks within the given timelines and ensure continuous follow-up.”
On electricity sector reform, the directive instructs the Electricity Regulatory Commission to determine the necessary “wheeling charge” within 30 days to implement an open access system. This is expected to open the door for competitive electricity trading between the private and public sectors. Additionally, differentiated tariff structures based on seasonal and peak demand will be introduced for reservoir-based and pumped storage projects, helping balance electricity production and consumption.
The Nepal Electricity Authority has been directed to submit a report listing all existing Power Purchase Agreement (PPA) disputes along with possible solutions. It must also classify projects under PPAs into operational, delayed, and at-risk categories and present a clear status report. This move is expected to boost investor confidence and help resolve stalled projects. To attract private sector investment in reservoir-based projects, a policy will be introduced to set license validity at 50 years.
The Electricity Regulatory Commission, Hydropower Generation Company, and National Transmission Grid Company have been instructed to submit reports within 30 days identifying performance issues, overlapping responsibilities, and areas requiring reform.
Similarly, the Department of Electricity Development has been directed to publish, within 60 days, detailed information on all hydropower survey and construction licenses across the country. This will include issuance dates, progress, milestones, and compliance status. Companies failing to comply with regulations will be issued “cure notices,” and no new licenses will be granted without review.
A publicly accessible “license performance dashboard” will also be established and updated monthly. Furthermore, grid evacuation infrastructure—capacity to transmit generated electricity—has been made a mandatory prerequisite for new hydropower projects. Construction licenses will only be issued after the Nepal Electricity Authority and National Transmission Grid Company ensure the required transmission lines and substations are in place.
On financial transparency, detailed reports on hydropower royalty collection and distribution must be made public to ensure that provinces and local governments receive their rightful shares as per the law.
A new “Carbon Revenue Unit” will be established to set standards for registration, certification, and benefit-sharing of carbon trading projects, which is also expected to help reduce costs for small projects.
To increase domestic electricity consumption, the Nepal Electricity Authority and the Alternative Energy Promotion Centre will jointly prepare a national demand and consumption plan. The Nepal Power Trading Company will be fully activated to develop a long-term electricity export roadmap.
Emphasizing new technologies, a 24-hour AI chatbot system will be introduced to address consumer complaints and power outage issues. A pilot project on green hydrogen will also be launched to promote research and development.
A “hydrological series” incorporating changes in river flow will be prepared, and the penalty system will be reviewed based on its impact on electricity generation.
In water resource management, initiatives will include implementation of river basin master plans, establishment of an inter-basin water resources unit, development of certified water and meteorological data systems, and operation of groundwater monitoring programs. In particular, groundwater management in the Terai region will be strengthened through digital monitoring systems.
In the irrigation sector, special emphasis has been placed on timely completion of national pride projects such as Babai, Bheri-Babai Diversion, and Sikta. Diplomatic efforts with India will be intensified for the Mahakali Irrigation Project, while the Sunkoshi–Marin project will be advanced through a re-tendering process.
To ensure sustainability in irrigation systems, measures include implementing an irrigation service fee, executing integrated agriculture–irrigation–industry plans, and preparing drought-resilient strategies for the Terai–Madhes region.
Urjasanchar