Government Tightens Power Purchase Agreement Policy
Summary
The Nepalese government plans to tighten the Power Purchase Agreement (PPA) policy from the upcoming fiscal year to reform the hydropower sector, including canceling delayed projects and encouraging private sector participation in electricity trade and transmission.
Key Points
- The government has adopted a policy to tighten the Power Purchase Agreement (PPA) policy in Nepal's energy sector starting from the next fiscal year.
- A high-level committee recommended canceling 38 hydropower projects totaling 1388 megawatts due to delays and irregularities.
- Immediate PPAs will be issued for 176 projects under 10 megawatts, but uncertainty remains for large hydropower projects including the previous 5000 megawatts allocation.
- The Ministry of Energy plans to allow private sector involvement in electricity trade, export, and transmission line construction with legal provisions to regulate 'wheeling charges.'
