‘Allow private sector to sell electricity in international market’

Kathmandu, June 25

Independent Power Producers’ Association, Nepal (IP- PAN) has asked the government to bring a policy allowing the private sector to sell electricity in the international market.

After India and Bangladesh expressed their interest to buy electricity from Nepal, IPPAN has urged the government to allow the private sector players to sell electricity to international consumers. Recently a representative team of IPPAN had visited India for discussions on the probability of regional energy trade.

During the visit, India showed interest to buy 18,000 megawatts of electricity, while Bangladesh expressed interest to purchase 9,000 MW from the private sector, according to IPPAN.

Speaking at a press meet today, Shailendra Guragain, president of IPPAN, said that Indian stakeholders have conveyed a positive response towards the achievement of the Nepali private sector in power generation.

“It became imminent through this visit that Indian market is open for Nepali hydroelectricity,” he said, “The legal provisions of the Indian government for electricity development clearly indicates that Nepal can supply electricity to India as well as to third countries via India.”

Guragain, however, said that there are lots of legal hurdles in Nepal either to sell electricity to India or to other countries. “With existing laws and regulations, we are unable to compete in the international market. Thus, the Nepali government has to hold discussions with Indian government and ensure access for private sector in Indian and third-country markets,” he added.

He further said that after fulfilling the internal demand of electricity, the surplus energy could be supplied to the regional market.

Thus, considering the longterm benefits, the government has to amend the existing policies to make them more contextual, he added.

He further said that the government must hold discussions regarding this issue in upcoming bilateral meetings with the Indian government.

“High-level meetings between the two governments are a must in order to create a conducive environment for the private sector,” he said adding, “The government should bring a precise policy regarding power export and regional trade.”

Meanwhile, highlighting interest of Bangladesh, he said government also has to hold tripartite meeting with India and Bangladesh.