Ministry of Energy and Nepal Chamber of Industries Discuss Electricity Consumption Strategy Development

Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha and the Nepal Chamber of Industries held discussions on collaboration for the development and advancement of the energy sector. Minister Shrestha stated that the government is responsible for increasing both electricity export and domestic consumption, and is expecting suggestions from the private sector. President of the Chamber, Birendra Raj Pandey, proposed the formulation of policies to boost electricity consumption and urged allowing the private sector to engage in both domestic and international electricity trade.

During the meeting on Monday, 1st Baisakh, in Kathmandu, Minister Shrestha emphasized the government’s commitment to progressing by cooperating with the private sector for the overall development of the energy sector. He mentioned that the government is undertaking groundwork on how to increase domestic electricity consumption alongside exports. Highlighting that the government prioritizes reservoir, renewable energy, and strategies to increase electricity consumption, he also expressed expectations for clear suggestions from the private sector on how the energy sector can contribute more significantly to the country’s Gross Domestic Product (GDP).

Birendra Raj Pandey, President of the Nepal Chamber of Industries, stressed the need for policy implementation to increase electricity consumption, suggesting that energy production should be ensured for industries and transmitted via ‘wheeling charges.’ He recommended allowing the private sector to participate in both domestic and international electricity trading. Upon federal government approval, he urged immediate power purchase agreements (PPAs) with all surveyed projects pending such agreements. He also called for the development of policies to increase electricity consumption and requested incentives for industries based on fossil fuels to transition to electric-based equipment. Additionally, Pandey emphasized the importance of paying attention to alternative energy sources.