IPPAN Urges Immediate Opening of Power Purchase Agreement Process for 16,000 MW Hydropower Projects

The Independent Power Producers Association Nepal (IPPAN) has called on the Nepal Electricity Authority (NEA) to immediately open the power purchase agreement (PPA) process for hydropower projects with a combined capacity of 16,000 megawatts, which has been stalled. Acting Executive Director of NEA, Dirghayu Kumar Shrestha, informed that the PPA process for small hydropower projects and the extension of the commercial operations date (RCOD) are underway. Private power producers have submitted a 13-point demand to the authority, including delays in transmission lines, PPA tariff revision, and the formation of a joint mechanism. Kathmandu, 25th Saun.

IPPAN has formally requested NEA to reopen the PPA process for projects amounting to 16,000 MW for power purchase. During a meeting between NEA and IPPAN representatives, IPPAN urged the authority to accelerate the long-delayed PPA process. IPPAN President Mohankumar Dangui explained that the halt in PPA approvals has adversely affected the investment, financial management, and development stages of projects under study and construction. “For immediate resolution of the issues faced by projects delayed for a long time, the 16,000 MW cap should be lifted, and the PPA process for all qualified projects should proceed,” Dangui emphasized.

NEA’s Acting Executive Director Dirghayu Kumar Shrestha stated that the PPA process for hydropower projects under 10 MW capacity has already progressed. In the meeting with the IPPAN delegation, he shared that preparations are ongoing to fast-track the PPA process for small-scale projects. Additionally, NEA is advancing the process to extend the commercial operation date (RCOD). Based on project status and the nature of issues, the authority has categorized projects into ‘A’ and ‘B’ groups and initiated work on extending RCOD accordingly, he added.