Kathmandu, December 18, 2025: A delegation from the Solar Power Producers’ Association, Nepal (SOPPAN) met with the newly appointed Managing Director of the Nepal Electricity Authority (NEA), Mr. Hitendra Dev Shakya, to congratulate him and offer full support for his tenure. The meeting focused on advancing Nepal’s solar energy transition through policy reforms and technical improvements.
During the meeting, SOPPAN’s Executive Committee highlighted ten key priorities to strengthen the solar power sector. These included removing the 10 percent cap on solar energy in the national energy mix, extending generation licenses and Power Purchase Agreements (PPAs) to at least 35 years, and amending Ministry of Energy directives to ensure fairness and predictability, particularly in VAT treatment.
Other major concerns raised included standardizing Environmental Impact Assessment (EIA) thresholds, applying EIA requirements only for projects above 50 MW, transparent capitalization cost methodologies for transformers and accessories, and exempting Independent Power Producers (IPPs) from SCADA integration fees, recognizing them as operational costs.
The delegation also emphasized streamlining no-objection procedures from irrigation authorities, promoting Agri-PV integration, introducing Battery Energy Storage Systems (BESS) with viable tariffs for new solar projects, expanding distributed generation and net metering up to 1 MW for commercial and industrial users, and urgently announcing the next solar PPA auction targeting 1,000 MW or more.
SOPPAN President Dr. Sandip Shah stressed the strategic importance of grid-connected solar power within Nepal’s Integrated Power System. He highlighted solar energy’s complementary role with run-of-river and PROR hydropower, particularly in mitigating climate-induced variability in hydro generation. The discussion also covered the role of BESS and pumped storage hydropower in enhancing grid stability and energy security.
Managing Director Shakya welcomed SOPPAN’s proactive engagement and acknowledged the technical and commercial depth of the discussions. While noting that several matters fall under the Ministry of Energy and the Electricity Regulatory Commission, he assured that NEA would actively address issues within its authority to promote solar development and ensure equitable electricity access nationwide.
The SOPPAN delegation included President Dr. Sandip Shah, Vice President Nikhil Raj Banka, General Secretary Prawin Aryal, and members Prashant Pratap Shah, Padma Gurung, Gaurav Poudel, and Apar Neupane.
