Energy Minister Shakti Basnet has asked the private sector to get ready for the power trade. Addressing the 21st annual general meeting (AGM) of the Independent Power Producers' Association Nepal (IPPAN) on Thursday, Basnet said the government is all set to open power trading for the private sector. According to Basnet, the Electricity Bill 2080 will be registered in the parliament soon and its parliamentary endorsement will pave the way for the private sector to engage in power trading. “The bill is currently reviewed by the ministries concerned,” said Basnet. The government, according to Basnet, is going to implement a campaign called ‘Energy for Development’ to further develop the energy sector. “The campaign is aimed at increasing production, distribution, transmission, trade, and consumption of electricity,” he said.

IPPAN President Krishna Prasad Acharya said that the government should open the way as the private sector is ready for power trading. Stating that the country’s electricity generation increased after the entry of the private sector, Acharya said that the private sector should now be allowed to do power trade business in order to increase consumption and export of electricity.

Private power producers have been lobbying for their involvement in power trading. This demand stems from the fact that the Nepal Electricity Authority (NEA) currently holds a monopoly on power purchase agreements (PPAs), leaving no other entity in the country authorized to sign such agreements with power producers. The power producers have been gearing up for power trading licenses by establishing power trade companies. According to the Department of Electricity Development (DoED), Nepal Power Exchange Ltd (NEPEX) and Power Trading and Energy Exchange Ltd (PTEEL) have applied for power trading licenses. Similarly, Nepal Infrastructure Bank has applied to the Ministry of Energy, on behalf of the Power Trading Company (PTC) Ltd, and the Himalayan Trading Company is also preparing to register an application for the license. While the private sector in Nepal is still awaiting the trading license to sell electricity in both domestic and foreign markets, some private entities have already signed memorandums of understanding (MoUs) with Indian companies for the cross-border trading of electricity. The Nepal Power Exchange Limited (NPEL), subsidiary of IPPAN has already signed an agreement with Manikaran Power Limited, India to carry out cross-border electricity trade. As per the MoU, the Indian company will buy 500MW of electricity from the Nepal Power Exchange Limited besides investing in the Nepali company itself. During the Power Summit 2023, Nepali and Indian companies signed initial deals for selling 2,200 MW of electricity to India. Karki elected new IPPAN President The 21st AGM of IPPAN also elected a new executive committee. Ganesh Karki has been elected as the new president of the association unopposed. Similarly, all office bearers including Mohan Kurma Dangi as Senior Vice President were elected unopposed. The meeting elected Ashish Garg, Bharat Kumar Khatri, Uttam Vlon Lama, Ram Prasad Acharya, and Anand Chaudhary as vice presidents of IPPAN. Similarly, Balram Khatiwada was elected as the General Secretary. Prakash Chandra Dulal as the Deputy Secretary General. Likewise, Bharat Prasad Nepal, Bharat Kumar Khadka, Kavita Pokharel, Vikram Bista, and Him Prasad Pathak have been elected as secretaries.