Nepal | July 12, 2020

IPPs establish power trading firm to export energy to India, Bangladesh

UMESH POUDEL
Share Now:

Kathmandu, June 12

Twenty private power developers have come together to establish ‘Nepal Power Exchange Ltd’.

The independent power producers (IPPs) aim to supply power generated by private developers in the domestic market as well as export electricity to neighbouring countries like India and Bangladesh through the power trading company.

The IPPs have jointly formed the energy trading company as the additional electricity expected to be generated by the end of next fiscal is at risk of going to waste if the government is unable to export it. At present, the country is generating 1,142 megawatts of electricity, of which more than half is generated by IPPs.

“Despite our significant contribution to the energy sector, the government has largely ignored our genuine concerns,” claimed Asish Garg, managing director of the company, who is also the promoter and general secretary of Independent Power Producers’ Association, Nepal (IPPAN). “Hence, we have established a public company to ensure the market for electricity generated by IPPs.”

As per him, the company has submitted an application at the Electricity Regulatory Commission and the Ministry of Energy, Water Resources and Irrigation for further process.

The company is finalising some of the projects in Arun basin developed by IPPs that can export energy to India and Bangladesh in the near future.

“We have already inked a memorandum of understanding with the Bangladeshi government and their private sector regarding power trade and we will soon hold further discussions regarding mutual benefits for both parties,” Garg said.

In September last year, when Energy Minister Barsha Man Pun had visited Bangladesh, Bangladeshi government had expressed interest to purchase electricity generated from the Upper Karnali Hydropower Project of Nepal. The Bangladeshi government had said it would purchase 500 megawatts of power from the 900-megawatt project.

Back then, Energy Minister Pun had said that Bangladesh planned to buy 9,000 megawatts of power from Nepal by 2040. He added that the two countries were in discussion regarding Bangladesh purchasing around 1,500 megawatts of electricity to be generated from Dudhkoshi and Upper Arun Hydropower projects of Nepal.

At that time, Minister Pun had said the talks would be concluded soon.

As per Garg, the company is planning to visit India this week to discuss the prospects of power trade with the southern neighbour. “We are scheduled to hold discussions with the Central Electricity Authority of India, along with other power-related entities for power sales and other transmission line issues.”

According to him, the establishment of the firm will increase competitiveness and break monopoly of Nepal Electricity Authority in power trade.


A version of this article appears in print on June 13, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Tarai districts at risk of floods after heavy rainfall in hilly region

RAUTAHAT: Tarai districts are at a high risk of floods as water level has risen alarmingly after incessant rainfall in hilly and Chure region in recent days. Locals residing on the banks of Bagmati and Lalbakiya rivers in Rautahat and Sarlahi districts have been living in terror of floods as Read More...

NHRC chief draws flak for condemning Mohna Ansari

KATHMANDU, JULY 10 National Human Rights Commission Chairman Anup Raj Sharma has drawn flak for issuing a press release condemning NHRC member Mohna Ansari for criticising Samajwadi Party-Nepal’s decision to expel Sarita Giri from both the party and the House of Representatives. Sharma h Read More...

Commission on the investigation of Enforced Disappeared Persons

Conflict victims lament govt’s apathy in their joint submission

KATHMANDU, JULY 10 Various victim groups of Nepal have made a joint submission to the 37th Session of the Working Group on Universal Periodic Review of the United Nations Human Rights Council, drawing its attention to the Government of Nepal’s persistent failure to deliver truth, justice, repar Read More...

Gaindakot, Nawalparasi

East-West Highway obstructed as flood sweeps diversion in Nawalpur

KATHMANDU: The East-West Highway has been obstructed since a diversion was washed away by a flash flood at Gaindakot section in Nawalparasi (East) district. It has been learnt that the vehicular movement along the highway came to halt after the flooded rivulet in Thumsi swept away the culvert o Read More...

Nepal Communist Party (NCP) standing committee meet put off for a week

KATHMANDU, JULY 10 The ruling Nepal Communist Party (NCP) has postponed its Standing Committee meeting for a week. NCP Spokesperson Narayan Kaji Shrestha wrote on his Twitter handle that the party took the decision to postpone its Standing Committee meeting to enable the party’s rank and fil Read More...

‘Regulate particular content, media, not entire industry’

KATHMANDU, JULY 10 Freedom Forum, a civil society organisation, issued a press release condemning cable operators’ decision to halt broadcast of Indian news channels, except Doordarshan, over misleading and defamatory content about Nepal. Freedom Forum said service providers and media carrie Read More...

Jada and Will Smith reveal marriage trouble on Facebook show

LOS ANGELES: With their marriage under social-media scrutiny, Jada Pinkett Smith and Will Smith reaffirmed their commitment to each other as Pinkett Smith admitted to having a relationship with musician August Alsina when she and Smith were separated. In a one-on-one conversation Friday on Pinke Read More...

Amazon says email to employees banning TikTok was a mistake

Roughly five hours after an internal email went out Friday to Amazon employees telling them to delete the popular video app TikTok from their phones, the online retailing giant appeared to backtrack, calling the ban a mistake. “This morning’s email to some of our employees was sent in error," Read More...