Kathmandu: The Independent Power Producers’ Association, Nepal (IPPAN) has met with Nepal Electricity Authority (NEA) Managing Director Hitendra Dev Shakya and proposed cooperation in power trading and transmission line construction.
During the meeting held on Thursday, IPPAN stated that the private sector is ready to construct transmission lines and cooperate with the Authority in power trading, urging the creation of a conducive environment for such collaboration.
IPPAN noted that a transmission line being constructed jointly by the private sector and the Authority is nearing completion. It proposed similar collaboration on other projects and suggested bringing the private sector in as a shareholder in the power trading company established by the Authority to enhance cooperation.
IPPAN President Ganesh Karki said that the private sector is facing major challenges due to the lack of transmission lines and reiterated its readiness to cooperate with the Authority.
He added that electricity trade could be advanced by involving the private sector in the Authority’s trading company until the private sector is granted licenses for electricity trading.
IPPAN Senior Vice President Mohan Kumar Dangi said that the development of the energy sector can only be achieved through joint efforts between the private sector and the Authority, emphasizing the need to strengthen cooperation between the two.
IPPAN Vice President Uttam Blon Lama, General Secretary Balram Khatiwada, Deputy Secretary General Prakash Chandra Dulal, and others stressed that the Electricity Authority should adopt the joint construction model and involve the private sector in transmission line projects.
On the occasion, IPPAN also demanded the immediate reopening of Power Purchase Agreements (PPAs), extension of the RCOD deadline, abolition of the contingency system, and removal of the hydrology penalty.
Managing Director Shakya said that the private sector is capable of completing transmission line projects on time and noted that the practice of jointly constructing transmission lines with the private sector has already begun, leaving no alternative but to move forward with such collaboration.
“The transmission line problem is the most visible issue. Due to this, problems such as contingency have arisen. Transmission line construction can resolve many of these issues,” he said. “When the Authority lacks sufficient budget, bringing in private sector investment can solve the core problem of transmission infrastructure.”
He further stated that balancing electricity production and consumption requires involving the private sector in power trading and said he would study the possibility of private sector participation in the Authority’s trading company. He also informed that the electricity trading company is in the process of being activated.
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