Power Market Unplugged

With the adoption of the Open Access Directive 2025, the Nepalese energy sector has entered a new era. For years, each unit of electricity passed through one channel as the Nepal Electricity Authority (NEA) purchased and sold the energy, thereby controlling the flow of money. The private hydropower firms did heavy work—they constructed the plant and did everything to produce energy. And after starting energy production, they were compelled to go to the NEA’s doorstep to sell power, which clearly showed that they did not have another option. Hence, the price quoted by the NEA did not depend on demand, and they depend on the electricity authority for getting money. Therefore, the way of energy sale confined the private firms to a corner. The Open Access Directive has removed this problem, as now the private firms can sell energy directly to their customers through the national grid. The captive plants of 1 MW and contract energy projects of 5 MW or more connected to 33 kV lines can supply energy to industries, hotels, and large-scale commercial institutions. For export purposes, the criteria is 10 MW. This does not close the door to the NEA.