Nepal Electricity Authority Acting MD Stresses Private Sector Role in Energy Development

Kathmandu. Nepal Electricity Authority Acting Executive Director Dirghayukumar Shrestha has stated that the participation of the private sector in transmission line construction and electricity trade is essential for the development of the country's energy sector. He said so while addressing the 26th Annual General Meeting and 8th Convention of the Independent Power Producers' Association, Nepal (IPPAN) on Friday.

He admitted that due to the lack of transmission lines, electricity produced by the private sector is currently being wasted during the monsoon season. He stated that the problem of energy wastage arises because transmission line construction is a challenging task and the authority has not been able to complete these projects on time due to coordination with various stakeholders.

"To solve the challenges seen in transmission line construction and to facilitate electricity flow, the authority will move forward in collaboration with the private sector," Shrestha said. He praised the cooperation shown by the private sector in projects like Dordi Corridor and expressed expectations for similar cooperation in the future.

Shrestha mentioned that managing surplus electricity during the monsoon and exporting it is the current main challenge. He informed that more than 5 billion units of electricity are estimated to be saved in the current fiscal year and the target is to export up to 1000 megawatts of electricity to India.

Stating that he is clear about allowing the private sector in transmission lines and electricity trade, he said, "I have repeatedly raised the issue of bringing the private sector into transmission and trade in discussions with the minister. This will help reduce the high risks currently faced by the authority."

Regarding electricity export, he opined that if the private sector can also take initiative in Indian guidelines and other legal processes, it will be easier to achieve the government's long-term goal of exporting 15,000 megawatts of electricity. He also mentioned that discussions are ongoing regarding open access, wheeling charges, and cross-border regulations.

Shrestha emphasized the need to move forward towards solving the energy crisis and economic prosperity by further improving the relationship between the private sector and the authority.