The government has established a high-level committee to review the current status of Power Purchase Agreements (PPAs), aiming to make the process more result-oriented, transparent, and accountable.
According to the Ministry of Energy, Water Resources and Irrigation (MoEWRI), the panel is led by Joint Secretary Rajan Bhattarai and has been tasked with examining PPAs being carried out by the Nepal Electricity Authority (NEA).
The committee will identify policy, technical, economic, and legal challenges within the PPA process and recommend necessary reforms to make it more transparent, competitive, and aligned with national interests.
Private sector power developers have long expressed concerns over delays in the PPA process by government bodies, including the NEA. The Independent Power Producers’ Association, Nepal (IPPAN) reports that PPAs for projects totaling around 13,000 MW—despite applications already being submitted—remain stalled. Disputes over “take or pay” and “take and pay” policies have been a major cause of disagreement between policymakers and developers.
Last month, the government introduced differentiated PPA rates for reservoir-based hydropower projects to support private developers. Under the new framework, projects up to 100 MW will have a maximum rate of Rs 14.80 per unit in winter and Rs 8.45 per unit during the rainy season. For projects exceeding 100 MW, rates will be determined based on actual project costs.
Additionally, the MoEWRI has formed another committee to review the status and progress of permits issued by the Department of Electricity Development. This five-member panel, led by Joint Secretary Mohan Shakya, will examine policy, technical, financial, and legal gaps in the power development permit process.
