Energy ministry issues letters of intent to 6 private power trading firms

The Ministry of Energy, Water Resources and Irrigation has issued letters of intent to 6 private companies as part of preparations for power trading. So far, 14 companies have applied to the ministry for this purpose, while the documents and applications of the remaining 8 are still under review.

The ministry had decided on Asoj 30 to issue letters of intent to the private sector. Companies that have received them include Trans Asia Power Trading, Nepal Power Exchange and Dev Power Trade Company, among others. The validity period of the letters of intent has been set at 2 years.

According to senior divisional engineer Sanjeev Rai at the ministry, all companies that submit the required documents will receive letters of intent. He said the letters of intent are meant for market survey purposes, while preparations for issuing actual power trading licenses are being carried out separately.

Rai added that licensing conditions will be strict, and not all companies that received letters of intent are guaranteed to receive a license.