Though the private sector’s involvement in constructing electricity transmission lines has begun in Nepal, uncertainty over the wheeling charge—the primary revenue source for such projects—has raised concerns about investment recovery.  

The Tamor-Dhungesanghu 220 kV transmission line , announced on December 17, 2024, under the Build-Own-Operate-Transfer (BOOT) model, marked the first private sector participation in Nepal’s transmission line projects. This initiative involves a public-private partnership with agreements signed between the National Transmission Grid Company (NTGC), Hydroelectricity Investment and Development Company Ltd. (HIDCL), and five private hydropower promoters.  

On January 2, 2025, NTGC invited expressions of interest for the Lamabagar-Barhabise 220 kV Transmission Line Project under the same model, requesting submissions within 15 days.  

Krishna Acharya, a private sector representative for the Tamor-Dhungesanghu project, highlighted concerns about the unresolved wheeling charge—a fee paid by power producers and network users to transmission line operators. “Investors are moving forward, trusting the government to address this issue in consultation with the Ministry of Energy,” Acharya told New Business Age. However, he cautioned that delays in determining the wheeling charge could hinder progress.  

The Tamor-Dhungesanghu transmission line is estimated to cost Rs 3.8 billion, while the Lamabagar-Barhabise line is projected to require Rs 5 billion.  

Netraprasad Gyawali, CEO of NTGC, stated that private companies are investing in the Tamor-Dhungesanghu project based on bookings by hydropower companies needing electricity transmission. He added that the Lamabagar-Barhabise line would connect five hydropower projects—Lapche (160 MW), Super Lapche (52 MW), Lapche Tamakoshi (40 MW), Jum Khola (56 MW), and Rolwaling (88 MW)—to the national grid.  

Gyawali expressed optimism that the wheeling charge would be finalized by the time loans are secured. 

Responsibility for setting the charge lies with the Electricity Regulatory Commission. Its spokesperson, Mandevi Shrestha, assured that the charge would be determined before the transmission lines become operational.  

Despite these assurances, stakeholders remain concerned that delays in finalizing the wheeling charge could deter private sector investment in transmission line projects.