Committee recommends govt terminate PPA of hydropower projects that have failed to secure funding

hydropower projects
A power station of an under-construction hydropower project Photo: Shashwat Pant

Kathmandu, August 13

A government committee has recommended the termination of all power purchase agreements (PPA) of hydropower projects above 100 MW that have failed to secure funding for their construction over the last three years.

A committee chaired by joint secretary Sandeep Kumar Dev made the recommendation in a report outlining the policy framework for the sale and purchase of electricity.

For projects with a capacity of under 100 MW, the committee recommended the government terminate the PPA if the organisation has failed to secure funding for their construction over the last two years.

Along with the cancellation of PPA, the committee has also recommended the cancellation of survey permits for such projects.

The committee has also recommended giving priority to the PPA of hydropower projects initiated by the government of Nepal, subsidiaries of Nepal Electricity Authority and companies owned by the government of Nepal.

The authority has so far entered into purchase and sale agreements for 7,775 MW worth of electricity. Out of that, only 2,023 MW is in commercial production.

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