KATHMANDU, June 18:Independent Power Producers´ Association, Nepal (IPPAN) has urged the government to accelerate the development of hydropower sector by taking different measures such as expediting power purchase agreement (PPA), focusing on expanding transmission lines and materializing the power trade agreement (PTA) with India.
In a letter submitted to Energy Secretary Bishwa Prakash Pandit, independent power producers have urged the government to take forward the process of signing PPA for different projects.
“The Nepal Electricity Authority has virtually stopped signing PPA for hydropower projects above 25 MW,” reads the letter. “It has made adverse impact on hydropower sector. It has also discouraged power developers from making new investment.”
Pandit was recently appointed secretary at the Ministry of Energy.
The independent power producers said the need of the hour was to develop adequate infrastructure for transmission and distribution of power. “Avoiding PPAs will lead the country towards further darkness,” reads the letter.
The power producers have strongly pushed the government to sign PTA with India. “PTA with India is crucial to develop a stable power market,” the letter reads. “We can export power when we have surplus and import when we run short of it in the domestic market once we sign PTA with India,” they said in the letter.
The government had shared the draft of PTA with India in 2009.
The independent power producers have also raised the issue of project development agreement (PDA) with the government. “The delay in finalizing PDA gives negative impression to the international investors who are looking to invest in the country´s hydropower sector,” the letter reads.
The power producers have asked the government to push NEA to start PPA negotiations for super six hydropower projects – Singati (16 MW), Khare (24.1 MW), Upper Solu (23.5 MW), Lower Solu (82 MW), Maya Khola (14.9 MW) and Mewa (50 MW).
The delay in signing of PPA has hampered development of these projects.
Source : Republica