Prime Minister Balendra Shah has met with independent power producers. After one hundred days of leading the government, Prime Minister Shah has begun meeting with some diplomats and representatives from the private sector. As part of this, on Friday, he held talks with independent power producers. According to promoters, the Prime Minister has shown keen interest in electricity trade. In addition, they say that Prime Minister Shah has committed to discussing the problems of power producers with Minister for Energy Biraj Bhakta Shrestha, Secretary Sarita Duwadi, Acting Executive Director of Nepal Electricity Authority Dirghayu Kumar Shrestha, among others, and to providing solutions.

Present at the meeting were Uttam Bhloan Lama, Senior Vice President of the Independent Power Producers’ Association, Nepal (IPPAN), former president Ganesh Karki, vice presidents Susan Karmacharya, Uttar Kumar Shrestha, Him Pathak, and General Secretary T.N. Acharya. Lama, IPPAN’s Senior Vice President, said that the discussion with the Prime Minister covered not only problems but also their solutions. “We discussed the entire ecosystem related to the energy sector, from electricity generation, licensing, transmission lines, and electricity trade to data centers, for about an hour and a quarter,” he said. “Similarly, we discussed the government’s 30,000 MW production target, investment, management, and the problems that may arise during implementation.”

He also said that the Prime Minister was interested in how electricity trade could contribute more revenue to the government, how to make the Authority more effective, and how to benefit the general public as a whole.

IPPAN submitted its demands and suggestions to the Prime Minister in writing under various headings, including Power Purchase Agreement (PPA) and its improvement, final commercial operation date (RCOD), policy and legal reforms, investment and financial reforms, transmission and infrastructure development, consumption and energy diversification, environmental and social responsibility, and others.

According to IPPAN, of Nepal’s total installed capacity of 4,300 MW, the private sector contributes 3,500 MW. IPPAN also stated that it is fully committed to the government’s policy and program targets of producing 30,000 MW in the next decade, expanding energy exports, increasing consumption, and building a green economy. IPPAN further said that private sector investment and project implementation are being seriously affected by obstacles in PPA, delays in forest and land approvals, lack of transmission infrastructure, obstacles in IPO/rights and share dematerialization, multi-agency hassles, and policy uncertainty. IPPAN stated that policy and legal reforms are needed to achieve the government’s declared energy targets and to make private sector investment secure, rapid, and result-oriented. It also demanded the immediate opening of PPAs for projects with a combined capacity of 16,000 MW that have applied but are on hold.

IPPAN’s former president Karki said the discussion with the Prime Minister was positive. “We had a positive discussion with the Prime Minister and his advisors,” he said. “We raised issues from the problems we are facing to the need to open up electricity trade and transmission lines. The Prime Minister has expressed his commitment to move forward to provide solutions.” Karki also said that discussions would be held with the minister, secretary, and NEA’s MD, among others.

IPPAN submitted a 47-point list of demands and suggestions to the Prime Minister, including tech-and-pay PPA, contingency, electricity trade permits, and ‘sunset law’. In addition, Lama said that Prime Minister Shah has also requested further study and suggestions on other unresolved issues related to the energy sector, including how to liberalize electricity trade.