The budget speech of the FY 2021/22 contains reference about introduction of wheeling system in Nepal’s power sector.
The proposed Electricity Act -2077 has made provision of power sales by private sector . It also ensures open access to NEA’s transmission line grid system for power trading.
India’s Guidelines, regulations and rules on import /export of power, CBET are viewed as a breakthrough, as it has enabling provisions for access to India’s power exchange, and support for trilateral trade transactions.
Regional Forum like SAARC, BIMSTEC, SASEC Agreements, provides framework for regional co-operation in power connectivity in South Asia Region. India is already importing 364 MW of power from Nepal.
South Asia Forum for Electricity Market (SAFEM), Market-based Electricity Trade in South Asian Region
The prospects for power trade by private sector never brighter before in Nepal.
Easy access to the competitive electricity market means more investors will be motivated to construct and commission energy projects, resulting in following benefits:
Reliable, affordable electricity supply 24 x 7
Competitive electricity market inside Nepal or cross border. Design based on optimization study, and Surplus energy, on top of the committed energy to NEA, domestic or cross border electricity market, fetching competitive price Switch-over to Peaking Run of River from the Run of River Projects, to sell energy during peak hours, when the tariff rate is the maximum. Project viability of hydropower projects can be improved . Also, IPPs might prefer peaking run of reservoir and reservoir projects. Option to sell energy to NEA or PTEEL, by entering into PPA with either NEA or PTEEL
More energy project means Local rural economy in the periphery of project area, enhanced due to increased economic activities ( constructions and CSR Activities) More energy project means Local population of the project area to benefit from the provision of separate shares for project affected people. People of Nepal , outside the Project area , also to benefit from the provision of shares.
Optimum design means optimum utilization of hydropower potential at a river stretch Guaranteed sale of power means more projects will come up, contributing to local and regional economic development, Increased revenue, in infrastructures and social sectors like transmission lines , health, education, poverty alleviation etc.