Government Opens National Transmission Grid to Private Power Producers

The government has opened the national transmission grid to private developers by introducing open-access wheeling charges. The Electricity Regulatory Commission announced transmission rates for fiscal year 2083/84 (2026–27), setting medium- and long-term grid access at Rs 413,000 per megawatt per month and short-term access at 57 paisa per kilowatt-hour, Nagarik News reported. Additional rules for lines outside the national grid remain in development.

The decision follows demands by the Independent Power Producers' Association, Nepal (IPPAN) to end the Nepal Electricity Authority's utility monopoly, legalize private domestic and cross-border power sales, and unfreeze power purchase agreements for roughly 17,000 megawatts of capacity. At the same time, private developers face unresolved operational friction with the state utility. Saral Patrika reported that IPPAN submitted 19 objections to NEA management over draft rules governing grid connections and technical loss deductions, prompting the utility to promise a review as its board weighs resuming purchase agreements for projects up to 10 megawatts.