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Nepal’s Department of Electricity Development has temporarily suspended the issuance of new survey licenses for hydropower, solar, and other energy projects.
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The suspension follows a directive from the Energy Ministry requiring a comprehensive review of all existing licenses, including project progress and compliance status, before any new permits are granted.
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Industry stakeholders say the halt is linked to delays in Power Purchase Agreements (PPAs), creating uncertainty for developers awaiting survey approvals and project advancement.
Kathmandu — The issuance of survey licenses for all energy projects, including hydropower and solar energy, by Nepal’s Department of Electricity Development (DoED) has been put on hold. The department has not issued any new survey licenses since mid-April 2026.
On April 16, 2026, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha directed the Department of Electricity Development to prepare and publish a complete list of all survey and generation licenses within 60 days. He also instructed the department to refrain from issuing new survey licenses until a comprehensive review is completed.
Minister Shrestha further ordered the department to disclose details of licensed projects, including the dates licenses were issued, contractual milestones, progress toward those milestones, and a list of projects that have failed to comply with regulations. The department was also instructed to issue “cure notices” to license holders that have not met legal requirements, in accordance with existing laws.
As a result, although the department continues to accept new survey license applications, no new licenses have been issued since the ministerial directive, according to DoED Information Officer Badri Kuinkel.
“We are still receiving new survey applications, but no new licenses have been issued by the department,” Kuinkel said. He added that work is underway to compile a complete database of survey and generation licenses along with their progress status, as required by the ministry.
According to the department, as of May 18, 2026, applications for survey licenses had been submitted by 235 hydropower projects larger than 1 MW, representing a combined capacity of 7,706.73 MW. Additionally, 52 hydropower projects below 1 MW, totaling 43.75 MW, had also applied for survey permits.
In the solar energy sector, 17 companies have applied for survey licenses covering 199.70 MW, while one wind energy project with a capacity of 1 MW has submitted an application.
President of the Independent Power Producers’ Association, Nepal, Ganesh Karki, said the main challenge is not the issuance of licenses but the delay in signing Power Purchase Agreements (PPAs).
“Licenses continue to be issued, but PPAs are not being signed. If this continues, many developers could face severe financial difficulties,” Karki warned.
According to the Nepal Electricity Authority, by the first week of May–June 2026, PPAs had been signed for 56 solar projects totaling 835.5 MW and 547 hydropower projects with a combined capacity of 11,988 MW.
However, PPAs for seven solar projects totaling 124.5 MW remain pending. In the hydropower sector, PPAs are still pending for 126 projects with grid connection agreements, representing 7,617.45 MW, and 138 projects without connection agreements, totaling 8,134.16 MW. Altogether, 264 projects with a combined capacity of 15,751 MW are still awaiting PPAs.
Karki argued that new licenses should only be issued after a clear pathway is provided for Power Purchase Agreements (PPAs) for projects that have already received licenses. He also stressed the need to distinguish between projects that have been unable to proceed to construction due to government, forestry, or other administrative hurdles and those that obtained licenses but have made no progress.
The Department of Electricity Development has already launched a publicly accessible License Performance Dashboard, which includes project-wise milestone progress, compliance status, and enforcement actions taken against license holders.
According to Balram Khatiwada, Secretary General of Independent Power Producers’ Association, Nepal, the suspension of survey licenses is only temporary and linked to the current slowdown in PPA approvals.
“Since PPAs are being held back, the government is likely reviewing the situation before issuing new survey licenses. The suspension is temporary,” Khatiwada said. “Developers have already paid fees and submitted applications for survey licenses. If licensing were halted permanently, it would create serious problems.”
To date, 13 hydropower projects with a combined capacity of 8.85 MW and individual capacities below 1 MW have received survey licenses. In addition, 242 hydropower projects totaling approximately 11,000 MW have already secured survey licenses.
In the renewable energy sector, 88 solar projects with a combined capacity of 2,000 MW have received permits, while four wind energy projects totaling 15 MW have also obtained licenses.
Kantipur
