Energy promoters have said that Finance Minister Bishnu Paudel is playing a game to complete the energy sector by introducing a provision to make a power purchase agreement (PPA) according to the concept of 'take and pay' (take and pay) for run-of-river hydropower projects in the budget of the next financial year. After Finance Minister Paudel indicated that the arrangement would not be changed, the Independent Energy Producers' Organization, Nepal (IPPAN) movement has started its internal homework.

Due to the commitment of the Energy, Water Resources and Irrigation Minister Deepak Khadka to correct the provisions in the budget, the protest is yet to be announced, but now the movement is engaged in the internal homework of the movement. Given. 

In case of PPA in 'take and pay', the authority buys the quantity it needs and pays only for it. In the case of PPA in 'Take or Pay', the authority has to take electricity according to the agreement made with the promoter, otherwise it has to pay the price to the promoter. So far, the authority has been doing PPA only on 'Take or Pay'.

Even though the construction of the hydropower project is completed but the new transmission line is not completed or the capacity of the transmission line is reduced, the authority has also set a time limit for the PPAs made in the old 'Take or Pay' basis and electricity on the basis of 'Take and Pay'. Received and paid.

While Energy Minister Khadka is claiming to correct the 'take and pay' provision in the budget of the next financial year, Finance Minister Poudel has indicated that it will not be corrected. Since the coming of the budget, Energy Minister Khadka has been denying that he did not send the policy of PPA according to the 'take and pay' concept of Run of River hydropower project and it was kept by the Ministry of Finance. Khadka also claimed that it was a 'type mistake' in a press conference held at the Ministry of Energy on Sunday (June 1).

It was understood that it was being written by the Ministry of Finance. It was understood that it was not a matter that came up through extensive discussion or in-depth study," Minister Khadka said, "It has been recommended that the old system be 'take or pay' to be amended through the Ministry of Authority. I would like to request that the amendment be made during the passage of the budget.

Earlier, at the 13th convention of the Nepal Electricity Authority Employees Association, Minister Khadka had also informed that the provision has been sent to the Ministry of Finance to correct it. But speaking at the meeting of the House of Representatives on Monday, Finance Minister Paudel has indicated that the provision will not be removed. He said that a law has been proposed in the House to increase the role of the private sector in transmission and sales along with electricity production.

The electricity bill to open up the private sector to produce and trade in electricity is under consideration in the parliament. The current situation of having to sell electricity only to the Electricity Authority will end," he said. "After the opening of the electricity trade, the Nepal Electricity Authority will purchase electricity produced from the private sector to maintain the supply and demand balance. Excess electricity can be sold by the private sector. The Authority can enter into PPA to supply the required electricity by looking at the current production and consumption. As this law is still under consideration, take and pay has been proposed.

Even if the private sector is allowed to trade in electricity, it will not happen within a day or two, said IPPAN Vice President Anand Chaudhary. Ganesh Karki, chairman of IPPAN, said that 6 private sector companies to trade in electricity have not been granted permission even though they have applied for it 5/6 years ago and it is not certain when the proposed bill will be passed. 

'The budget covers the government's goal of generating 28,500 megawatts of electricity in 10 years. But the irony is that after the budget, it was said to do PPA in 'Take and Pay','' he said. Energy and meaning had to be coordinated. He said that the Ministry of Energy does not know whether it is possible to say that it is not possible? is. 

"There is an idea of ​​ending load-shedding by buying electricity from India in winter, how will it end if we don't produce domestically," he said, "Currently around 11,000 projects are being built. If we do not move forward, the project will not come in the next 5 years. So there is a serious challenge. The private sector will be finished and the energy sector of the country will be finished.' Yes, it is said in the statement issued by IPPAN, "but it is positive to have the courage to write a letter to the Ministry of Finance against the budget passed by yourself." Ippan said. Ippan says that when 'Take and Pay' PPA is implemented, banks and financial institutions will not manage finances in PPAs based on 'Take and Pay' and 'Take or Pay' PPA of projects below 10 MW will be affected.