Electricity trading company gets permission

For the first time, the government has given permission to a subsidiary of Nepal Electricity Authority for international electricity trade. Thursday’s cabinet meeting approved the power trading company.

NEA had set up the company about three years ago and was seeking permission.

“The government has given permission to the subsidiary of NEA for electricity trade. Now all the process is moving forward, ‘said Minister for Energy, Water Resources and Irrigation Pampha Bhusal.

The government-sanctioned company has shares in HIDCL, a power generation company. There are more than three dozen public and private sector companies operating in India for electricity trade. Regular business operations and decision making process will also be easier when trading electricity through the company. Even the private sector has been demanding from the government for electricity trade. NEPEX, established by the officials of Independent Power Producers Association of Nepal (IPPAN), has also applied to the Ministry of Energy for permission. Similarly, a subsidiary of Nepal Infrastructure Bank has applied for electricity trade. With the permission of the government investment company, it has become easier for the private sector company to get the permission. At present, the total installed capacity of Nepal’s system has reached 2,000 MW.

If the work is done as specified, an additional 1,300 MW of electricity will be added to the system by the end of the current fiscal year. When electricity is connected in the current year, a total of 3300 MW of electricity is available in the system. Similarly, the capacity of the project under construction is 3,500 MW.

Projects with foreign investment are in various stages of construction. The physical construction progress of Arun III with a capacity of 900 MW being constructed by Indian company Sutlej is expected to be good. Nepal receives 200 megawatts of free electricity from the project. The Upper Trishuli 1 Hydropower Project in Rasuwa has also entered the construction phase. The government and NEA have to find an international market as the system is constantly adding electricity but electricity cannot be consumed accordingly. After the company got permission, NEA Executive Director Kulman Ghising said, “We have been addressing the demand for the last three years. This is a matter of happiness for us. ‘ He said that it would be easier to work through the company and now it is easier to move the process forward.

Especially Nepal’s electricity market is India and Bangladesh. Bangladesh has expressed interest in purchasing electricity for the coming monsoon season. According to Energy Minister Bhusal, the government has a plan to involve the private sector in electricity trade, but there must be some basis for that. He said that the ministry was clear that they should be involved in the production as they have the support and cooperation of the private sector.

She said, “Yesterday there was a tendency to get a license and do the same business. That will not be allowed to happen.” We are aware of this. It was established as a trend to keep the river in the bag. That will not be allowed in business. ‘ She said that since it is a matter of international trade, there should be a clear basis as to where to sell it, how to do it and with whom the agreement has been reached.

“The government needs to be reassured,” she added. Anyone who has taken permission should do so. We allow for business. There is no problem in that. Even if there is no law, we give. We have not been told to come. ‘