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Started 1 day ago · Updated 17 hours ago

Nepal Government to Expedite PPAs for Small Hydropower Projects and Revoke Idle Licenses

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The Nepali government has announced immediate Power Purchase Agreements (PPAs) for electricity projects under 10 megawatts and will revoke licenses of projects that have signed PPAs but not started construction. Finance Minister Dr. Swarnim Wagle stated these measures are part of the fiscal year 2083/84 budget, which also allows private sector participation in international electricity trading and encourages investment in reservoir-based projects by permitting a 40% public share issuance in the first year.

• The government plans to divide the Nepal Electricity Authority into three separate companies for production, distribution, and trade.
• Arrangements will be made to determine electricity purchase rates on a fluctuating basis during the dry season.
• Legal arrangements will be made for the private sector to trade electricity internationally by building transmission lines and charging wheeling charges.
• The government will facilitate the adjustment of forest land use rights and tree cutting fees when ownership of hydropower projects transfers after the concession period.
• NPR 70 billion has been allocated to complete under-construction transmission lines and substations, including the Hetauda and Inaruwa transmission lines.