Electricity Bill will address private sector concerns: Energy Minister Khadka

KATHMANDU: Minister for Energy, Water Resources and Irrigation, Dipak Khadka, has stated that the development of the energy sector is unattainable without the involvement of the private sector.

During a meeting with a delegation from the Independent Power Producers' Association, Nepal (IPPAN) at the ministry today, Minister Khadka committed to addressing the private sector's concerns. He assured them that the proposed Electricity Bill would cater to their issues.

According to him, the government is taking time to introduce the document in parliament to ensure the inclusion of the private sector's perspectives. He mentioned that the development costs of power projects have escalated due to the lack of customs duty discounts on maintenance machinery. He also noted that small projects would be severely impacted if the provision for the free distribution of electricity were implemented, deeming it impractical.

On this occasion, IPPAN President Ganesh Karki informed the Minister that natural disasters, a shortage of explosive devices, import hindrances due to the Russia-Ukraine War, and forest and land-related issues are among the obstacles to meeting hydropower project deadlines. He urged the government to extend the deadline for commercial production.

He also demanded the reopening of power purchase agreements (PPAs) for nearly 13,000 megawatts (MW) of projects that have been suspended, the removal of hydrology penalties for all projects considering the impacts of climate change on hydrology, and the resolution of forest and land-related issues by the government.

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