Nepal Power Trading Company Limited (NPTCL), a state-backed subsidiary of the Nepal Electricity Authority (NEA), has received board approval to initiate power trading operations, authorizing the commercial sale of up to 100 megawatts (MW) of electricity.
The board decision marks a pivotal operational step for NPTCL, which was originally established in 2016 to facilitate cross-border energy transactions but remained largely dormant while the NEA directly handled power imports and exports. Under the new framework, the proposal has been forwarded to the Electricity Regulatory Commission (ERC) for final consent. Once approved, NPTCL will source power from hydro projects operating under existing Power Purchase Agreements (PPAs) with the NEA and execute direct sales to India and neighboring regional markets.
The activation of NPTCL aligns with broader structural reforms aimed at unbundling generation, transmission, and trading functions within Nepal’s power sector. The expansion of commercial power trading capabilities comes on the heels of record growth in regional energy trade, with Nepal recording a net electricity trade surplus of Rs 18.76 billion in the recently concluded fiscal year.