Fiscal Nepal
First Business News Portal in English from Nepal
Birajbhakta stha IPPAN opening
KATHMANDU: Former President of the Independent Power Producers’ Association, Nepal (IPPAN), Krishna Prasad Acharya has urged the government to open Nepal’s electricity trading and distribution sectors to private sector participation, arguing that broader liberalization is essential for the continued growth of the country’s energy industry.
Speaking during the 26th Annual General Meeting and 8th Convention of Independent Power Producers’ Association Nepal, Acharya said the private sector has already demonstrated its capability in power generation and is equally prepared to contribute to electricity trading and distribution.
“Just as the government opened electricity generation to the private sector, it should now allow private investment and participation in electricity trading and distribution as well,” Acharya said. “The private sector is ready not only for generation but also for power trade and distribution.”
He emphasized that expanding private sector involvement across the entire electricity value chain would help improve efficiency, attract investment, and accelerate the development of Nepal’s power market.
Acharya also called for the immediate implementation of a one-door policy mechanism to simplify administrative procedures and approvals in the energy sector. He argued that bureaucratic hurdles and regulatory complexities continue to obstruct hydropower development and discourage investors.
Highlighting concerns over project delays, Acharya questioned why extending the Revised Commercial Operation Date (RCOD) for hydropower projects should be controversial.
“Who loses if RCOD extensions are granted?” he asked, noting that many hydropower projects have faced delays due to factors beyond developers’ control, including government-related bottlenecks.
According to Acharya, projects delayed because of government procedures, approvals, transmission infrastructure constraints, or other institutional obstacles should receive blanket RCOD extensions. Such a move, he said, would provide relief to developers, improve project bankability, and support Nepal’s long-term energy expansion goals.
His remarks come at a time when Nepal is seeking to increase electricity production, expand cross-border power trade, attract greater investment in the hydropower sector, and position itself as a regional clean energy exporter.
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