Nepal Issues Intent Letters for Private Firms in Cross-Border Power Trade

Key points

• The Ministry of Energy, Water Resources and Irrigation decided to issue intent letters on October 25, 2026.
• Twelve companies, including Nepal Power Exchange and Green Energy Power Trading, have applied for the letters.
• The letters will allow companies to study markets and prepare for trading but not to enter power purchase agreements.
• Legal amendments to the Electricity Act are required before companies can obtain trading licenses.
• The letters of intent will be valid for two years, requiring quarterly progress reports.