IPPAN urges political parties to prioritise private sector–friendly energy Policies in election manifestos

Kathmandu, Jan. 24: The Independent Power Producers’ Association, Nepal (IPPAN) has urged political parties to prioritise energy-sector issues of the private sector in their election manifestos, stating that such focus is crucial to accelerate Nepal’s energy development.

On Friday, IPPAN sent formal letters to major political parties—including the Nepali Congress, CPN-UML, Nepali Communist Party, Rastriya Swatantra Party, Rastriya Prajatantra Party, and Ujyalo Nepal Party—calling for the adoption of private sector–friendly energy policies.

Addressing the top leadership of the parties, IPPAN stressed the need to transform Nepal into an energy-secure nation and to develop the country as a 100 per cent clean and green energy user.

According to a press statement issued by IPPAN, the association has put forward 13 demands, including a proposal to declare Nepal an “energy-friendly country.”

IPPAN President Ganesh Karki said amendments to the Electricity Act, 2049 are necessary to establish a competitive electricity market through a multi-buyer, multi-seller system. He also called for allowing private sector participation in electricity trading, transmission, and distribution.

“The energy sector has become the backbone of the country’s prosperity and development. If political parties clearly prioritise this sector—the largest investment sector in Nepal—in their manifestos, it will help attract further investment,” Karki said.

He added that achieving national development goals would not be possible without meaningful private sector involvement in electricity trade, transmission, and distribution. “The vision of prosperity through energy development cannot be realised unless the private sector is fully included,” he said.

According to IPPAN, the private sector has generated more than 3,300 megawatts of electricity over the past 26 years. At present, power projects with a combined capacity of 5,700 megawatts under 190 projects are under construction, while 958 projects with a total capacity of 36,336 megawatts are at various stages of development.

IPPAN further stated that around Rs. 1,300 billion has already been invested in electricity generation. However, growing challenges in the sector have made policy clarity in political party manifestos increasingly important.

A study by the Water and Energy Commission estimates that Nepal has the potential to generate about 120,000 megawatts of electricity—48,000 megawatts from reservoir-based projects and more than 72,000 megawatts from run-of-river projects. Despite this potential, only around 4,000 megawatts have been generated so far.

The National Planning Commission has set a target of expanding electricity generation capacity to 8,500 megawatts under the 16th Five-Year Plan. Nepal’s long-term goal is to produce 40,000 megawatts by 2100.

Likewise, the Energy Development Roadmap 2081 aims to generate 28,500 megawatts by 2035, while the Third Nationally Determined Contribution (NDC) targets 14,000 megawatts by 2030 and 28,500 megawatts by 2035.

To meet these ambitious targets, IPPAN has urged political parties to clearly outline strategic plans, policies, and private sector–friendly provisions related to energy development in their election manifestos.