Kathmandu: The government has decided to establish policy arrangements for the long-discussed issue of energy export. A decision made by the Cabinet meeting held on Friday, immediately after the formation of the new government, includes provisions to prepare a strategy for the broader development of the energy sector as well as for export within one month.
Nepal has been exporting hydropower to India and, on a limited basis, to Bangladesh. The government aims to further clarify this arrangement in policy terms and make it more implementable. The strategy is expected to be finalized within one month.
Similarly, the long-demanded Power Purchase Agreements (PPAs) will be concluded within 180 days. The timeline has also been set in line with the goal of further expanding hydropower production and addressing the demands of the private sector.
Overall, with the objective of developing the energy sector as a key foundation for economic transformation, the government has emphasized the need to immediately remove obstacles related to electricity generation, transmission, distribution, and export, ensuring rapid progress in the sector.
The government is also preparing to implement a strategy focused on exporting electricity to high-value markets, particularly during peak evening hours.
The plan includes preparing and implementing a roadmap for structural reforms of the Nepal Electricity Authority. Additionally, a multi-dimensional financial framework—incorporating government, private sector, foreign, and diaspora investment—will be developed to manage long-term financial resources in the energy sector.
