Government to Tighten Power Purchase Agreements and Environmental Studies
Summary
The Nepal government plans to tighten environmental studies and electricity purchase agreements for hydropower projects to protect local rights and ensure financial feasibility. Committees have been formed to review permits and PPAs, and policy clarifications on 'Take or Pay' provisions are underway.
Key Points
- The government will tighten environmental studies and electricity purchase agreements (PPAs) for hydropower projects to protect local water, land, and forest rights.
- Two high-level committees have been formed to review permits and analyze obstacles in the PPA process within 120 days.
- Policy ambiguity regarding 'Take or Pay' and 'Take and Pay' models in PPAs will be resolved through the upcoming budget amendment.
- Discussions are ongoing to make large hydropower projects like Budhigandaki financially feasible by adopting a multipurpose model rather than only hydropower.
