Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has issued a detailed action plan with time limits to the concerned bodies to make structural reforms, transparency enhancement and performance of the energy and water resources sector result-oriented.

The ministry has issued a 32-point directive covering multifaceted issues ranging from electricity market reform to strengthening the irrigation system.

The ministry has assigned clear responsibilities to the concerned bodies to implement all the action plans within the specified time limit. In addition, there will be regular intensive monitoring.

‘This directive has been issued to strengthen the water resources and energy sector after long homework and intensive discussions with the stakeholders,’ he said. ‘This directive is not just for show, but on this basis, our policies, plans and program roadmap will be prepared.’ Therefore, I also direct the subordinate bodies and employees to complete the work within the specified time limit and follow it up continuously.''

In the said directive, the Electricity Regulatory Commission has been asked to determine the necessary 'wheeling charge' within 30 days for the implementation of the 'open access' system towards the reform of the electricity sector. This is expected to open the door to competitive electricity trading between the private and public sectors.

Different tariff structures will be implemented for reservoir and pumped storage projects based on seasonal and peak demand, which will balance electricity generation and consumption management.

The Nepal Electricity Authority has been directed to submit a report with a list of all PPA (Power Purchase Agreement) disputes to date and options for resolution.

It has been directed to submit a report with a clear status by classifying the existing PPAs into operational, delayed and at-risk projects. This decision is expected to increase investor confidence and help in resolving stalled projects. In order to attract the private sector to reservoir projects, a policy is being introduced to fix the license period for such projects for 50 years.

The Electricity Regulatory Commission, power generation companies and the National Transmission Grid Company have been asked to identify performance, duplication of responsibilities and necessary aspects of improvement and submit a report within 30 days.

The Power Development Department has been directed to make public the detailed details of the survey and construction licenses of all hydropower projects across the country within 60 days. This will include the license issuance date, progress, milestones and compliance status. Companies that do not comply with the rules will be issued a 'cure notice' and a provision has been made that no new licenses will be issued without review.

A plan has also been put forward to establish a publicly accessible 'License Performance Dashboard' and update it monthly. 'Grid evacuation', i.e. infrastructure that can transmit the generated electricity, has been made a mandatory prerequisite for moving forward with new hydropower projects. Now, a new construction permit will be issued only after the Nepal Electricity Authority and the National Transmission Grid Company ensure the capacity of the required transmission lines and substations.

Towards financial transparency, a detailed report on the hydropower royalty collection and distribution process will have to be made public. This will also ensure that the share received by the provinces and local levels as per the law has been correctly transferred.

A ‘Carbon Revenue Unit’ is to be established as a new dimension in the energy sector, which will prepare criteria for registration, certification and benefit sharing of carbon trading projects. It is also expected to help reduce the cost of small projects.

To increase domestic electricity consumption, the Nepal Electricity Authority and the Alternative Energy Promotion Center will jointly prepare a national demand and consumption plan. A long-term electricity export roadmap will be prepared by making the Nepal Power Trading Company fully active.

Prioritizing the use of innovative technology, arrangements will be made to resolve consumer complaints and problems related to electricity disruptions through an ‘AI chatbot’ that will operate 24 hours a day. In addition, research and development will be encouraged by advancing the 'Green Hydrogen' pilot project.

Similarly, a 'hydrological series' will be prepared to include changes in river flow and the penalty system will be reviewed according to its impact on electricity generation.

In terms of water resource management, the implementation of the river basin master plan, establishment of inland water resource units, development of a certified water and weather data system, and groundwater monitoring programs will be conducted. Groundwater management will be strengthened with a digital monitoring system, especially in the Terai region.

In terms of irrigation, special emphasis has been placed on the timely completion of national pride projects such as Babai, Bheri-Babai Diversion and Sikta. Diplomatic initiatives with India will be intensified for the Mahakali Irrigation Project, while the Sunkoshi-Marin Project will be taken forward through a re-contracting process.