Nepal opens door for state-backed power trader, while private firms remain shut out
Summary
Nepal Electricity Authority’s subsidiary Nepal Power Trading Company Ltd is preparing to enter the electricity-trading market with approval to sell up to 100 megawatts, mainly for exports to India and other countries. Private power firms say the government is opening the market selectively while delaying licences for private traders.
Key Points
- Nepal Power Trading Company Ltd (NPTCL) has been approved to trade up to 100 megawatts of electricity, subject to regulatory consent and price limits.
- The company will trade power generated by projects with existing PPAs with the Nepal Electricity Authority, primarily targeting India and potentially other countries.
- Private producers and associations like IPPAN say the government is favoring a state-backed trader while keeping private firms out of the market.
- The government says it is working to amend the Electricity Act, 1992, to allow private-sector participation in electricity trading.
