Nepal accelerates transmission projects and opens grid to private sector

Nepal's Ministry of Energy, Water Resources and Irrigation is taking steps to expedite the construction of 12 national transmission line projects. Energy Minister Biraj Bhakta Shrestha has initiated coordination to resolve obstacles involving the Department of Forests and the Department of Roads, which have previously hindered progress regarding tree cutting permissions and pole relocation.

In a separate move to modernize the energy market, the Electricity Regulatory Commission (ERC) has opened the national transmission grid to the private sector. The government has established specific wheeling charges to facilitate private participation in electricity trading. For the 2026/27 fiscal year, medium-term and long-term open access fees are set at Rs 413,000 per megawatt per month, while short-term open access is priced at Rs 0.57 per kilowatt-hour.

These initiatives aim to strengthen the national power system and align with open market policies by allowing third-party entities to utilize the Nepal Electricity Authority's (NEA) transmission and distribution lines.