Kathmandu, April 18
Prime Minister Puspa Kamal Dahal has said that Nepal is now looking to become a net exporter of electricity by 2025, without any need for imports even during the dry season.
Addressing the Power Summit 2023 which kicked off here today, PM Dahal stated that the government of Nepal takes great pride in the achievements in the energy sector and is committed to further expanding the market for its green energy.
"We are therefore gathered in Kathmandu to share and learn from experiences of Nepal and abroad on the best strategy to broaden the markets for our green energy," PM Dahal said. "We realise that many Nepalis still do not have access to green energy and we must continue to expand the grid as well as adopt off grid technologies to make electricity available to all people of the country."
Emphasising the need to expand transmission and distribution lines to meet industrial demands and ensure a stable power supply, PM Dahal highlighted the importance of engaging in cross-border power trade to benefit from cheap and diverse resources in the region and sub-region.
"We all should understand that the use of generated electricity in our own domestic market is our key priority as we aspire to be economically prosperous. Until we build enough infrastructure to utilise the generated electricity internally, we need to export it to protect the huge investments already made on the generation side."
Likewise, Minister of Energy, Water Resources, and Irrigation Shakti Bahadur Basnet highlighted the significance of a collaborative approach between the government and private sector in achieving Nepal's green energy goals.
Minister Basnet emphasised that the government's long-term plans in exploring international markets for electricity and increasing domestic consumption demonstrates its unwavering commitment to sustainable economic growth and harnessing the country's potential as a major player in the global energy market.
Meanwhile, a memorandum of understanding (MoU) for a direct power purchase agreement between the Nepali hydropower project and Indian buyer was signed at the summit.
Agreement between SteelMint India P Ltd and Nepal Power Exchange Ltd for launch of Power Mint power index in Nepal has been inked at the summit.
Kshitiz Pandey, general manager of SteelMint India and Krishna Acharya, chairman of Nepal Power Exchange Ltd signed the agreement.
As per agreement, both the companies have joined hands to launch Power Mint Power Index in Nepal, which will serve as a platform for information-sharing on electricity tariff, demand supply and many more.
Likewise, an MoU was signed between Manikaran Power Ltd India and Bizbell Energy Pvt. According to the agreement, Bizbell Energy's 103.5 MW hydropower plant under construction in Humla will be purchased by the Indian company Manikaran for electricity production.
Also, there was an MoU between Manikaran Power LTd India and Kasuwa Khola Hydropower Project Nepal for purchase of power at the summit. As per MoU, Manikaran Power as leader power trader shall work on securing PPA in Indian market on long term basis whereas Nepal Power Exchange shall be market intermediate for carrying out the transaction and getting the buyer and the seller together.
With the slogan 'Green Energy Market Expansion', the two-day summit is hosting 15 sessions covering issues relating to markets for Nepal's power, power infrastructure, demand for Nepal's hydropower, technology and innovation, thinking beyond hydropower to solar, hydrogen, regulatory framework, cross-border power trade, sustainable and climate-resilient development, environment social and governance, regional interest and energy security.
According to Independent Power Producers' Association - Nepal, the summit is the largest power sector event in Nepal, with 800 energy sector-related participants, including 300 international delegates from more than 30 countries.
A version of this article appears in the print on April 19, 2023, of The Himalayan Times.
