Nepal's Energy Sector Shifts Focus from Production to Market Management
Summary
Nepal’s power sector is shifting from solving shortages to managing a growing surplus, with new attention on electricity markets, transmission, and exports. Officials and experts say the country now needs open access, market rules, and stronger infrastructure to turn hydropower into a reliable commercial asset.
Key Points
- Nepal’s electricity system has moved from shortage to surplus, making market management and power trade the main challenge.
- The Electricity Regulatory Commission says electricity trade can begin under the existing legal framework, with open access as a key tool.
- Experts warn that Nepal needs stronger institutions, predictable regulation, and major transmission investment to support future exports.
- India remains the main market, while Bangladesh is emerging as a destination and domestic industrial demand is also seen as essential.
