KATHMANDU: Minister for Energy, Water Resources, and Irrigation Deepak Khadka has pledged to resolve the challenges faced by small hydropower projects through policy reforms.
Speaking at a program organized by Green Energy Entrepreneur Nepal on Thursday, Minister Khadka highlighted the government’s commitment to collaborating with the private sector to improve the energy landscape.
“The ministry is ready to address the problems of small hydropower projects through necessary policy amendments,” Minister Khadka said. “Let’s discuss the issues together and work towards sustainable solutions.”
He highlighted the need for joint efforts between the government and private stakeholders to develop the energy sector and address institutional discrepancies. Khadka further mentioned that the energy development roadmap, recently approved by the Council of Ministers, aims to resolve the challenges faced by private sector entrepreneurs.
Green Energy Entrepreneur Nepal Chair Engineer Surya Prasad Adhikari raised demands during the program, including adjustments in power purchase agreement (PPA) rates for small hydropower projects and the implementation of the ‘take or pay’ provision.
He also called for the removal of the alternative electricity generation system and requested that the production period not be specified for projects below five megawatts.
Additionally, Adhikari urged the government to maintain a 50-year production license period for projects between five and 10 megawatts and to keep the customs duty rate on spare parts at one percent, as per the old policy.
Minister Khadka said the government is committed to resolving these issues and that private sector stakeholders should not be blamed for any lapses on the part of the NEA.
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