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In the context of preparations for the budget of the upcoming fiscal year /27, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has made it clear that the energy sector will be advanced as a key indicator of economic growth and overall development.

Speaking with journalists covering the energy sector on Thursday, he indicated that the government aims not only to focus on infrastructure construction but also to restructure the energy system at policy, institutional, and structural levels.

Minister Shrestha said that in a democratic governance system, constructive criticism should be taken as a basis for policy improvement, emphasizing the need for active collaboration with stakeholders. “The energy sector is as large as it is sensitive, so it requires deep study and continuous monitoring,” he said.

The government has also put forward a plan to expand energy services through alternative sources such as solar and micro-hydro in around 16 local levels that still lack electricity access. In the long term, a concept has also been introduced to connect local governments with energy production and make them self-reliant. He said this is expected to strengthen rural energy access as well as social justice.

Acknowledging the private sector’s contribution to energy generation, Minister Shrestha said the government will now introduce policies to expand private sector participation not only in generation, transmission, and distribution, but also in energy trade. However, he stressed that instead of weak regulations, a strong legal foundation would be created through robust legislation. “Large investment sectors require a strong legal base,” he clarified.

The government is also focused on making regulatory bodies in the energy sector more effective. Policies are being advanced to strengthen the Electricity Regulatory Commission, reduce direct ministry intervention, and make autonomous institutions more accountable. Likewise, he said there are plans to empower the Water and Energy Commission Secretariat and the Alternative Energy Promotion Centre for policy research and long-term planning.

Minister Shrestha said the government is actively working to remove delays in transmission line expansion. He noted that stalled projects, including those in Hetauda, have been moved forward and coordination with donor agencies has intensified. According to him, delays in energy infrastructure affect the country’s credibility, so implementation capacity will be improved.

He also signaled a review of the Power Purchase Agreement (PPA) system, acknowledging that some past decisions had created difficulties for investors. The government, he said, will move toward protecting investments, increasing transparency, and ensuring policy clarity.

He further stated that the government is serious about local contradictions arising from energy projects, such as water shortages despite increased electricity production. Priority will be given to protecting local rights linked to water, land, and forests, as well as to environmental studies and evaluation of their implementation.

Overall, the government appears to be pursuing a strategy to transform the energy sector not only through higher production but also through policy reform, institutional strengthening, cooperation with the private sector, and expanded access to the local level. The government’s commitment to transparency, legal clarity, and accountability signals long-term reform in the energy sector.

Jalasarokar