A delegation from the Independent Power Producers’ Association of Nepal (IPPN) has submitted a 12-point memorandum to the Nepal Electricity Regulatory Commission, seeking reforms to promote private sector participation in the power trade.
The IPPN has called for the implementation of open access in transmission and distribution systems, permission for private sector companies to engage in bilateral power trade, and the preparation of a model power purchase agreement (PPA) that is bankable and based on international practices.
The association has also sought the establishment of a dispute resolution mechanism, simplification of the approval process, and compensation for financial losses incurred by power producers due to delays in the construction of transmission lines by the Nepal Electricity Authority.
Other demands include a clear policy on take and pay PPAs and contingency PPAs, a guideline on mergers and acquisitions of hydropower companies, and a review of the initial public offering (IPO) pre-approval guideline to make it more practical and investor-friendly.
The IPPN has also asked for a separate and suitable PPA for reservoir-based and pumped storage hydropower projects, recognition of energy storage, and necessary incentives.
The Nepal Electricity Regulatory Commission has expressed its commitment to working with the private sector to promote the development of the power sector and has assured that it will study the suggestions made by the IPPN and take necessary steps to address them.
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