The Ministry of Energy, Water Resources and Irrigation has begun preparations to regulate private sector participation in electricity trade, aiming to better balance power generation with domestic demand and expand opportunities in cross-border markets.
The move comes as Nepal's electricity generation capacity grows. Additional power in the coming years will require new markets, making the development of a framework for private sector involvement a priority for the ministry.
Why Nepal is preparing to regulate electricity trade
The ministry's plan is intended to help align electricity supply with demand within Nepal while supporting the search for markets beyond the country. As generation capacity increases, the need to manage surplus electricity and identify buyers is expected to grow.
Regulating private sector participation would establish a clearer basis for companies to take part in electricity trade. The ministry has begun preparations for this work, though the available information does not specify the rules or a timeline for their introduction.
Focus on domestic demand and cross-border markets
The plan reflects two related priorities: matching electricity generation with domestic consumption and expanding potential cross-border markets. Developing those markets could help create options for the additional electricity expected as Nepal's power capacity grows.
