KATHMANDU: Independent Power Producers’ Association of Nepal (IPPAN) has demanded Nepal Electricity Authority (NEA) resume signing the Power Purchase Agreement (PPA).
A team of IPPAN led by Chairman Krishna Prasad Acharya called on NEA Executive Director Kulman Ghising and urged him to reopen the PPA.
Reminding that 215 power projects have been looking forward to signing the PPA after fulfilling all procedures and criteria, IPPAN said power companies have been paying annual renewal fee of the survey license for the last three years as PPA for these projects have not been finalized. The 215 companies waiting PPAs have a combined capacity of over 9,000 megawatts (MW).
Even companies that already have power generation license have been strained financially as they are losing their annual revenue. The halt in signing PPAs would increase the overall cost of the projects and possibilities of projects not completing on time would affect the government’s national target of producing 15,000 MW in 10 years, IPPAN cautioned.
According to IPPAN, the private sector has so far invested around Rs 1 trillion in the the identification, study and development of power production projects. Similarly, it would spend over Rs. 17 trillion in the next seven years for the purpose.
“However, NEA’s policy has left private sector promoters frustrated.”
“By suspending signing of PPAs, the NEA has not only discouraged private investors but also created serious obstacles to the overall development of the energy sector that was attracting domestic and foreign investors and which is also identified as the backbone of the country’s overall economic development,” the IPPAN statement read.
Keeping in view the financial burdens faced by investors and clear confusion, IPPAN has demanded resuming signing of the PPA immediately.
Energy sector entrepreneurs, including IPPAN Vice Chairman Mohan Kumar Dangi, members of the working committee Prakash Chandra Dulal, Uttam Blon Lama, Kabita Pokhrel, coordinator of the advisory committee Kumar Pandel and others were present at NEA.
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