Nepal Government to Formulate Energy Export Strategy Within a Month

Kathmandu. The government is set to make policy arrangements for long-demanded energy export. A decision made in the Cabinet meeting held on Friday immediately after the formation of the new government mentions preparing a strategy for export within one month, in addition to the broader development of the energy sector.

Nepal has been exporting hydropower to India and, even if only as a token, to Bangladesh. This will be further clarified and made implementable through policy. The preparation of this strategy within one month has been mentioned.

Similarly, agreements related to the purchase and sale of electricity, long demanded by the private sector, will be made within 180 days. A timeline has also been set for further expansion of hydropower generation and for concluding such agreements as per the private sector's demand.

Overall, by putting forward various action plans for the development of the energy sector, the government has clarified that decisions regarding power purchase agreements and licenses will be made within a maximum of 180 days.

The objective is to develop the country's energy sector as the main basis for economic transformation and to ensure rapid development by immediately removing obstacles related to electricity generation, transmission, distribution, and export.

Furthermore, the government is preparing to immediately implement a strategy focused on obtaining high prices for electricity exports, especially during the evening 'peak' hours. The action plan includes preparing and immediately initiating the implementation process for a roadmap regarding the structural reform of the Nepal Electricity Authority.

Moreover, a multi-dimensional financial structure (government, private, foreign, and diaspora investment) will be developed for the long-term financial resource management of the energy sector. The details made public on Saturday include that relevant bodies will set clear timelines and implement the reform action plan.