Nepal Electricity Authority (NEA) enjoys a practical monopoly over transmission and distribution systems in Nepal. The sad reality remains that majority of hydropower projects in Nepal have not gone under construction due to the absence of transmission lines.
Independent Power Producers are compelled to sell electricity to NEA as a Single Buyer Model is operating in Nepal, and NEA has shown reluctance in signing the Power Purchasing Agreement (PPA) citing excess energy during wet season after 2017 as the reason. This has severely constrained the pace of hydropower development in Nepal. Implementation of provision of allowing private sector to build their own transmission lines and open access on transmission service under specific regulation may solve this problem by inviting multiple buyers system in Nepali electric market as it helps to manage demand and supply of energy on the basis of market driven model.
Join Samriddhi’s Pramod Rijal as he presents his views on ‘Policy Options for Improved Electricity Transmission System in Nepal’ at Martin Chautari on April 5, beginning 3:00 p.m.