Kathmandu: Narendra Ballav Pant, Vice President of the Independent Power Producers’ Association, Nepal (IPPAN), has welcomed the government’s plan to involve the private sector in electricity trading.
The government is moving forward with a plan to issue Letters of Intent (LOIs) to private companies preparing to engage in cross-border electricity trading, followed by licences once the necessary legal and regulatory procedures have been completed.
According to Pant, allowing the private sector, which has already been investing in electricity generation, to participate in electricity trading as well is a positive step towards developing the energy sector. The move is expected to encourage private investors to explore new business opportunities and contribute to expanding Nepal’s electricity trade.
As Nepal’s hydropower generation capacity continues to grow, Pant said it is essential to ensure domestic and international markets for the electricity produced. The LOI arrangement is expected to help companies identify potential markets, hold discussions with domestic and foreign trading partners, and prepare for possible electricity purchase and sale agreements.
However, receiving an LOI will not, by itself, authorise companies to begin electricity trading. They will still need to obtain the required licences and regulatory approvals, secure access to transmission systems, and comply with the applicable legal procedures in the relevant countries before conducting actual transactions.
The participation of the private sector is expected to strengthen Nepal’s presence in regional energy markets and enhance the commercial potential of investments in hydropower.
Nepalpurbadhar
