Urja Khabar
Kathmandu: Nepali private sector’s energy producers said they reached an agreement with Indian companies to sell up to 200 MW of electricity, although there is no provision in the state’s law allowing the private companies to sell electricity by themselves.
According to the Independent Power Producers Association Nepal (IPPAN), the agreement was developed among the players of the energy sectors of two countries during the 'Energy Conference, 2023’ that was started on Tuesday. Ashish Garg, vice president of IPPAN and conference coordinator, said they initiated the move to pressurize the government to open permits to the private sector on cross-border energy trade.
According to Garg, Nepali company Bizbell Energy Pvt Ltd signed a memorandum of understanding with Manikaran Power, an Indian company, to sell 103.5 MW of electricity produced from Chuwakhola Hydropower Project. Likewise, the developer of 85 MW Kasuwakhola Hydropower Limited inked the agreement with Manikaran Power to export produce of the power plant.
Private companies were said to have signed agreements for energy trade from other hydropower plants too, which, however, have not been disclosed. Similarly, Steel Meet and Nepali Power Exchange Company also carried out an agreement to extend the energy trade between two countries.
Nepali private sector energy developers have long been demanding the government to allow them to be involved in cross-border electricity trade. However, the existing Electricity Act-1992 bars implementation of the provision as demanded by the private sector companies, while the government has also been showing apathy to make necessary move on the issue.
