Nepal Electricity Authority Forms Subcommittee to Study Power Purchase Agreement (PPA) Criteria
Summary
Nepal Electricity Authority has formed a five-member subcommittee to set new criteria for power purchase agreements, raising concerns among energy producers about policy instability and delays. The committee will submit recommendations within seven days as Nepal pushes to expand electricity generation toward a 30,000-megawatt target by 2035.
Key Points
- The Nepal Electricity Authority has formed a five-member subcommittee to study and recommend new criteria for power purchase agreements within seven days.
- Energy producers say the move adds uncertainty because the Authority had already issued criteria and priorities for several PPA-eligible projects.
- The new criteria will consider electricity demand, project type, and transmission-line availability, especially in congested corridors.
- The decision comes as Nepal aims to generate 30,000 megawatts of electricity by 2035, but delays in PPAs are worrying investors.
