After understanding the annual report of the Energy Commission, Minister Ghising directed to make pricing of hydropower projects competitive, transparent and accessible.
Minister for Energy, Water Resources and Irrigation Kulman Ghising has urged the Electricity Regulatory Commission to set competitive rates for power purchase agreements (PPA) for hydropower projects.
While reviewing the annual report of the commission for the last fiscal year 2081/82, Minister Ghising pointed out the need to set a competitive base rate to make energy produced from hydropower projects more accessible, competitive and transparent.
Commission Chairman Ram Prasad Dhital submitted the report to Energy Minister Ghising on Wednesday.
Directing the commission officials, Minister Ghising said, "Solar energy currently has a competitive base rate, which has made PPA competitive and transparent. Similarly, to determine the actual price of PPA for hydropower projects, standardize the process and conduct PPA competition, set the base rate and prepare bidding documents."
Nepal Electricity Authority is currently purchasing solar energy through competition. For that, the maximum base rate of competition is 5.94 (five rupees and ninety-four paisa) per unit. The PPA rate of the hydropower project is Rs 4.80 and Rs 8.40 per unit for the rainy and winter seasons respectively.
Directing the officials of the commission to make the work of the regulatory body effective, Minister Ghising urged them to focus on their activities to promote and encourage the private sector and make the authority sustainable.
