Door opens to private sector for cross-border power trade
Summary
Nepal has formally allowed private companies to prepare for cross-border electricity trade for the first time, opening a new pathway beyond power generation. The move is expected to attract investment, expand market-oriented electricity trading and support structural reforms in the energy sector.
Key Points
- The Energy minister has decided to issue letters of intent giving private companies in-principle consent to prepare for cross-border electricity trading.
- Companies will be able to conduct feasibility studies, identify markets and partners, and prepare agreements, but actual trading will still require licences and other legal approvals.
- The government says the change could expand private investment, create new business opportunities and help shift Nepal’s electricity sector toward a more market-oriented structure.
- The letters of intent come with conditions, including anti-blacklisting declarations, quarterly progress reports and the possibility of suspension or revocation for violations.
