Government opens door for private sector in cross-border electricity trade
Summary
The government has opened the door for private companies in Nepal to explore cross-border electricity trading, allowing them to seek in-principle approval and prepare for future deals. Actual trading will still require licences, government approvals and compliance with legal requirements.
Key Points
- Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has decided to issue letters of intent to private companies for preparatory approval in cross-border electricity trade.
- The letters allow firms to study markets, identify partners and draft commercial agreements, but they do not authorize actual import, export or trading of electricity.
- Companies must meet licensing, transmission and legal requirements, while the ministry will monitor progress through quarterly reports and can suspend or revoke approvals for violations.
- The move is expected to make Nepal’s energy sector more market-oriented by linking power generation with trading opportunities.
