Government to Avoid Indiscriminate Power Purchase Agreements
Summary
The government will avoid indiscriminate electricity purchase agreements and base new PPAs on demand, consumption capacity, transmission readiness and market needs. It is also preparing a transmission master plan, promoting private investment in grid projects and setting up a legal framework for electricity trading.
Key Points
- The government says new electricity purchase agreements will be made only when demand, transmission capacity and market requirements are clear.
- Minister Biraj Bhakta Shrestha warned that unchecked PPAs could create financial burdens for the government, private developers and the public.
- The state is preparing a need-based PPA framework and is expected to decide on the Required Commercial Operation Date next week.
- Transmission expansion will increasingly use PPP and BOOT models, alongside a national transmission master plan and future electricity trading rules.
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