Kathmandu, October 14
Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha has said that policy arrangements to allow the private sector to enter electricity trading are in the final stage.
Speaking at a press conference organised at the ministry on Wednesday, Shrestha said the government was preparing the necessary policies to make the energy sector a foundation for the country’s economic development.
He also said that despite damage to energy infrastructure caused by natural disasters, efforts to restore services and continue development work were ongoing.
Shrestha said scientific and objective criteria had been prepared to guide power purchase agreements (PPAs) in line with national needs and demand from the electricity system.
Under the proposed criteria, priority will be given to projects that can meet peak electricity demand on winter evenings, contribute to energy supply during the dry season, maintain stable monthly production, have access to transmission infrastructure and ensure that electricity can be exported by the time commercial production begins.
The minister also said the commercial operation deadlines had been extended for 27 hydropower projects in the final stages of construction, with a combined capacity of 540.47 megawatts.
Shrestha further said Nepal and India had agreed to increase cross-border electricity transmission capacity from 1,000 megawatts to 1,400 megawatts for imports, and from 1,100 megawatts to 1,650 megawatts for exports.
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