IPPAN welcomes decision to give private sector letters of intent for electricity trade

The Independent Power Producers' Association, Nepal (IPPAN) has welcomed a government decision under which the private sector will be given letters of intent to prepare for cross-border electricity trade.

According to IPPAN, until now the private sector had been confined only to power generation. This decision opens the way for the private sector, for the first time, to seek markets, identify partners and prepare power purchase and sale agreements.

Welcoming the decision, IPPAN has also demanded that the government ensure the licenses needed for electricity trade.

IPPAN says the decision will advance preparations to sell electricity generated by the private sector abroad.