Kathmandu: Nepal has made a significant leap forward in the energy sector since the private sector entered electricity generation. With the country’s total installed capacity reaching around 4,000 megawatts, the private sector accounts for approximately 80 percent of the total.
For a long time, the private sector has been seeking permission to engage in electricity transmission and trading, in addition to generation. The government has issued Letters of Intent (LOIs) to 12 companies, including 11 from the private sector, to open up electricity trading. Issuing the LOIs marks the first step toward allowing private sector participation in electricity trading. Once they obtain licences, private companies will be able to trade electricity.
Floods in the Bhotekoshi River have caused significant damage to the hydropower sector, with projects totaling 400 megawatts currently out of operation. Both private and government-owned projects have suffered extensive damage. This has sparked discussions on issues such as the need to revise the design of hydropower projects.
Dinesh Khadka of Nepal Infrastructure interviewed Batu Lamichhane, an energy entrepreneur, chairman of BG Group, and chairperson of the FNCCI Renewable Energy Committee.
Nepalpurbadhar