Final preparations underway to allow private sector to enter electricity trade: Energy Minister

लगानी न्यूज

२८ आश्विन २०८३, बुधबार १७:१४October 14, 2026

TAG_OPEN_div_60 KATHMANDU: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said that the policy arrangements required to allow the private sector to enter the electricity trade have reached the final stage and preparations are underway to issue a letter of intent (LOI) to the private sector.

While reviewing the 6-month period at the Ministry on Wednesday, he said that electricity generation, transmission, market expansion and internal consumption increase have been taken forward in an integrated manner with the objective of making the energy sector the basis of the country’s economic development. He said that the work of restoration of service and development works has been continued despite the damage to the energy infrastructure due to natural disasters.

He said efforts have been made to resume the stalled investment in the energy sector in the past six months, prepare the base for the entry of private sector in electricity trade, expand transmission infrastructure and expedite the implementation of irrigation projects.TAG_OPEN_div_56

A total of 540 of the 27 hydropower projects that are in the final stage of construction during this period. The date for commencement of commercial production (RCOD) for the 47 MW capacity has been extended.

Minister Shrestha also said that Nepal TAG_OPEN_div_52 and India have agreed to increase the power flow capacity from 1,000 MW to 1,400 MW for import and from 1,100 MW to 1,650 MW for export. Work has been forwarded to strengthen the base of electricity trade through the expansion of cross-border transmission infrastructure, open access and transparent transmission tariff determination.

The construction work of Hetauda-Dhalkebar-Inaruwa 400 kV transmission line has reached the final stage. The construction of the Barhabise-Lapsiphedi 400 kV transmission line has been completed while the construction of Barhabise and New Khimti substations has been completed and brought into partial operation.TAG_OPEN_div_50

The Marki Chowk-Bharatpur 220 kV transmission line and the Dhalkebar-Balganga 132 kV transmission line have come into operation under the Marsyangdi corridor. The Lalbandi-Salempur 132 kV transmission line and related substations have also come into operation.TAG_OPEN_div_48

Emergency rehabilitation system has been installed on the damaged section of the Kohalpur-Surkhet transmission line. Similarly, the construction of Balkot and Dahachok substations, Chandrapur-Sukhdevchowk and Lahan-Sukhipur transmission lines has been started. Minister Shrestha said that the construction of 12 more transmission lines has been started with the target of completing the construction of 12 more transmission lines within the current fiscal year.

The process of expansion of distribution line has also been initiated for rural electrification in Madhes and full electrification in Karnali. Similarly, an action plan has been prepared and implemented with the goal of completing the projects of national pride in the irrigation sector within the stipulated time frame. Irrigation facilities have been expanded to 1,300 hectares of land by constructing an additional 13 kilometers of canal in the Sikta Irrigation Project. Out of the 27 tenders of the project, 11 have been awarded contracts.

Minister Shrestha further informed that the government has expanded irrigation facility to additional 1,155 hectares of land in Mahakali Irrigation Project, 610 hectares in Badkapath, 600 hectares in Babai and 150 hectares in Rani Jamara Kulariya.TAG_OPEN_div_42

{{TAG_OPEN_div_40} The work has been started with the aim of completing the Babai Irrigation and Bheri-Babai Diversion Multipurpose Project within the next two fiscal years. An integrated work schedule has been prepared by coordinating between the major contractors of the Bheri-Babai project.

The technical evaluation has been completed by inviting tenders again for the civil construction of the Sunkoshi Marin Diversion Project. Minister Shrestha said that the contract agreement for the project, which is in the process of evaluation of the financial proposal, is expected to be signed soon. In order to improve the management of the irrigation system, real-time water flow monitoring has been started in Rani, Jamara, Kulariya and Rajapur through telemetry technology. It is stated that regular irrigation service has been provided to about 2.33 lakh hectares of arable land through the irrigation system operated under joint management.

As part of the institutional and legal reforms in the energy sector, a bill related to renewable energy and energy efficiency has been registered in the House of Representatives and a bill related to water resources has been tabled in the cabinet. The process of preparing a draft of the Electricity and Irrigation Bill and seeking suggestions from the stakeholders has been initiated.

Electricity Consumer Tariff Determination Directive, 2083 and National Electricity Transmission Grid Transmission Fee Calculation Standard, 2083 have been issued. Guidelines related to open access to electricity transmission and distribution system have been prepared. Preparations have also been made to amend the Electricity Rules, 2050 to keep the license period of reservoir hydropower projects at 50 years.

To expand access to electricity in rural areas, 693 KW of electricity has been generated from micro and small hydropower and 841 KW from the solar minigrid. 18,575 in various institutions. 30 KW capacity rooftop solar systems have been installed and 315 solar irrigation pumps have been installed to increase energy use in the agricultural sector.TAG_OPEN_div_32

He said that scientific and objective criteria have been prepared to take the Power Purchase Agreement (PPA) process forward according to the national needs and demands of the system. The proposed criteria will give priority to the generation capacity to meet the high demand in the dry season, energy contribution in the dry season, stability of monthly generation, availability of transmission infrastructure and ensuring electricity export by the date of commercial commencement of commercial production of the project.TAG_OPEN_div_30