Nepal power monopoly yet to commit purchases from 281 projects worth 16,425.77 MW
Summary
Nepal faces delays in power purchase agreements for 281 hydropower projects totaling 16,425.77 MW, causing uncertainty among developers and raising concerns about future electricity supply and infrastructure needs.
Key Points
- 281 hydropower projects with 16,425.77 MW capacity are awaiting power purchase agreements (PPAs) with the Nepal Electricity Authority (NEA).
- Delays in signing PPAs are due to low domestic consumption, transmission limitations, and export market uncertainties.
- The NEA retains a monopoly on electricity purchases, causing financing difficulties for developers without PPAs.
- The government is reviewing hydropower policies and infrastructure investment to address supply-demand imbalances and promote domestic electricity use.
