This policy analysis paper titled “Policy Options for Improved Electricity Transmission System in Nepal” is prepared under the banner of Nepal Economic Growth Agenda (NEGA) 2014, which is preceded by NEGA 2012 and NEGA 2013. NEGA is an annual effort of Samriddhi Foundation to identify key constraints to Nepal’s economic growth and policy options for reform.
This specific policy analysis paper is based on the premise that absence of infrastructure to evacuate power generated through hydro plants is one of the key constraints in hastening the pace of hydro power development in Nepal, which sits on top of enormous hydroelectricity production potential.
Based on the secondary research as well as information and input collected from stakeholders through consultations, the paper argues that policy provisions allowing private sector to build their own transmission lines and open access on transmission service under specific regulation will help speed up the construction of transmission lines and consequently hasten the development of Nepal’s hydro power sector.
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