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Home Meghalaya

Rising power demand prompts Meghalaya to seek private investment in energy sector

The state benefits from 12% free power from this project, along with 1% allocated for local area development

Northeast NewsbyNortheast News
February 4, 2025
in Meghalaya
Representational image (pixabay)
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Shillong: The Meghalaya government is actively seeking private investment to enhance power generation in the state, as electricity demand continues to rise.

Power Minister A T Mondal announced on Tuesday that the state has introduced a new power policy aimed at encouraging private producers to invest in local energy generation. “With growing demand, it is crucial to ensure affordable, locally generated power,” Mondal stated.

The state has already allocated a hydel power project to the North Eastern Electric Power Corporation (NEEPCO), though progress has been hampered by ongoing land disputes.

“The 85 MW project, likely named ‘Wah Umiam,’ is located between the Shella and Mawsynram constituencies. We are optimistic that the land issues will be resolved soon,” Mondal explained.

The state benefits from 12% free power from this project, along with 1% allocated for local area development.

With electricity demand increasing at a rate of 11% annually, Mondal emphasised the need for local generation rather than relying on costly power imports.

“We must secure local generation to meet this demand,” he added.

Regarding private sector involvement, the Minister shared that several Memorandums of Understanding (MoUs) are in the pipeline, with some companies actively engaging in the process.

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He clarified that private firms would not be obligated to sell power to the state but noted that larger projects would include a “right of refusal” clause. This clause allows the state to opt out of purchasing power if necessary.

“All details of the policy are available on our website,” Mondal added.

As demand for power continues to rise, the Meghalaya government is aggressively pursuing investment in the energy sector to prevent future shortages and ensure long-term energy security for the state.

Tags: ElectricityInvestmentMeghalaya governmentPower Minister AT Mondal
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