KATHMANDU: Experts in the energy sector have claimed the private sector plays a vital role in expanding electricity market within country, so the government needs paying heed to its concerns.

They, however, said no new legislation was required to facilitate expansion of energy sector because licenses for hydropower generation can be issued to the private sector in line with the existing Electricity Act, 2049.

The discussion on ‘Nepal-India Energy Trade: The Way Forward for the Private Sector,’ witnessed such views. The event was conducted by the Independent Power Producers Association of Nepal (IPPAN) in Lalitpur.

Private sector’s involvement in instrumental in fostering a competitive electricity market, the experts said, adding that it is not feasible to manage large-scale power trade through a single entity.

Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, reminded government’s commitment to forwarding economic prosperity by leveraging country’s vast water resources for hydro power.

Government is for building partnership with the private sector in this endeavour, the Minister said, adding that the country earned Rs 29 billion from electricity exports and saved over Rs 18 billion in the last fiscal year.

Stable policies, effective regulation, private sector engagement, and strategic energy diplomacy are given emphasis to ensure Nepal as a reliable electricity exporter.

Former energy secretary Anup Kumar Upadhyay said that although a law was previously drafted on the issuance of license for power production to the private sector, a decision is yet to be realized.

Former deputy executive director at the Nepal Electricity Authority, Prabal Adhikari, noted that since the current law includes provisions for the sale and import of produced electricity, licenses for business could be granted to the private sector based on these regulations.