Kathmandu: The Independent Power Producers’ Association, Nepal (IPPAN) has submitted 13 demands to the Nepal Electricity Authority (NEA), including the immediate approval of Power Purchase Agreements (PPAs) for projects with a total capacity of 13,000 megawatts that have already applied for connection agreements and PPAs.
On Sunday, a delegation led by IPPAN President Ganesh Karki, who had gone to congratulate newly appointed Managing Director of the Nepal Electricity Authority, Manoj Silwal, submitted the demands, including the opening of PPAs for all projects that have so far applied for connection agreements and PPAs.
Before the approval of the fiscal year mid-July 2025 to mid-July 2026 budget, although PPAs for all projects smaller than 10 megawatts were opened, the demand has been made to immediately open the PPAs for run-of-river (ROR) projects where the “take-and-pay” provision was withheld in the budget. They have also demanded assurance of PPAs for around 15,000 megawatts worth of projects currently in the study phase, which are facing difficulties in moving forward due to the lack of PPA certainty.
Similarly, it has been demanded that the final Required Commercial Operation Date (RCOD) of hydropower projects that are unable to generate electricity within the stipulated time due to reasons such as floods and landslides, earthquakes, economic recession, shortage of explosives, delays in land acquisition, and delays in obtaining tree-cutting permits, be extended by three years. Likewise, they have also demanded the cancellation of the provision that places projects under contingency operation citing reasons like the lack of transmission lines.
While receiving congratulations and IPPAN’s demands, NEA Managing Director Silwal said that the Authority and the private sector must move forward together.
“We must move together; neither can function without the other. If we walk separately, both will sink,” he said. “The Electricity Authority will move forward seriously regarding the problems of the private sector. PPAs should be advanced by considering the electricity trade agreement with India and the state of electricity consumption.”
He stated that the Authority is ready to work impartially and in accordance with regulations, adding that force majeure is an appropriate reason for extending the RCOD deadline. He also urged that, if delays occur for other reasons, the Authority should be informed immediately.
“If for any reason the project is delayed in commencing operations, inform us right away. If both parties hold a joint meeting—even virtually—and move forward with the reasons, the RCOD deadline can be extended,” he said.
Managing Director Silwal said that since matters such as the new PPA rates need to be decided by higher authorities, the Authority is ready to facilitate the process for that.
AnnapurnaPost