Executive Director Hitendradev Shakya says – ‘There is no option but for the private sector to invest’
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The Independent Power Producers Association of Nepal (IPPAN) has met with Hitendra Dev Shakya, Executive Director of Nepal Electricity Authority, and proposed cooperation in power trading and transmission line construction.
Meeting the Executive Director on Thursday, IPPAN had stated that the private sector is ready to construct transmission lines and is also ready to cooperate with the NEA for electricity trading, urging them to create an environment for that. Stating that the construction of the transmission line built in collaboration with the private sector and the NEA is in the process of being completed quickly, it proposed to collaborate on other projects as well and to bring the private sector as a shareholder in the electricity trading company established by the NEA and cooperate through it. IPPAN Chairman Ganesh Karki said that the private sector is facing a big problem due to the lack of transmission lines and is ready to cooperate with the NEA.
He said that the business can be moved forward by involving the private sector in the NEA's trading company even until the private sector is given a license for electricity trading. On the occasion, Chairman Karki stressed the need to immediately open the Power Purchase Agreement (PPA), extend the RCOD deadline, abolish the contingency system, and abolish the hydrology penalty, and said that such demands should be addressed immediately.
IPPAN Senior Vice President Mohan Kumar Dangi said that the development of the energy sector can only be achieved by moving forward together with the private sector and the NEA, and said that the cooperation between the two should be strengthened. IPPAN Vice President Uttam Blon Lama, General Secretary Balram Khatiwada, Deputy Secretary General Prakash Chandra Dulal and others said that the NEA should bring the above model and involve the private sector in the transmission line.
Executive Director Shakya said that the private sector is in a position to build the transmission line on time and said that since the practice of jointly building transmission lines between the private sector and the NEA has already started, there is no alternative to moving forward with it. "The transmission line problem is the most visible, due to which there are problems including contingency, construction of transmission lines solves many problems." He said, "If the authority does not have sufficient budget, if private sector investment can be brought in, it will solve the main problem of transmission lines." He said that there is a need to balance production and consumption by involving the private sector in electricity trading, and said that he will study the participation of the private sector in the trading company of the Electricity Authority. He also informed that the electricity trading company is being activated.
