. Ganesh Karki, president of the Independent Power Producers’ Association of Nepal (TAG_CLOSE_span_37 IPPAN) {TAG_OPEN_span_36}} (IPPAN), has drawn the attention of the government that the investment of the private sector worth Rs 200 billion in electricity licenses is at risk. He warned that the uncertainty in the PPA (Power Purchase Agreement) and lack of policy reforms could lead to the collapse of the energy sector.
According to him, even though the government has issued a license for power generation, a huge investment from the private sector is in crisis due to lack of assurance to purchase the generated electricity.TAG_OPEN_p_41 According to him, projects worth 36,000 MW have been licensed so far and more than Rs 200 billion has been spent in the initial process of these projects.
Pointing out the huge gap between the license and the PPA, he said it was unfortunate that there were only 12,TAG_OPEN_p_40 500 MW PPA out of 36,000 MW licenses. “If the government does not guarantee the purchase of electricity or stop the PPA process, not only more than 100 licensee promoters but also the banks and financial institutions associated with them will be at risk,” he said.
IPPAN has stressed the need to untie the policy knots related to open access, wheeling charge and transmission line construction for the development of the energy sector.TAG_OPEN_p_39 If the government or the Nepal Electricity Authority {TAG_OPEN_span_35 TAG_CLOSE_span_35}} cannot purchase all the power, then the private sector should be allowed to sell electricity directly in the domestic and international market.
Stating that the long-term plans of energy sector have been affected due to political instability and frequent change of government, he urged the upcoming government to take energy as the main basis of national prosperityTAG_OPEN_p_38 There are.
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