Kathmandu. Minister for Energy, Water Resources and Irrigation Kulman Ghising has said that power production should not be curtailed citing lack of market.
Independent Power Producers’ Association of Nepal (IPPAN) on Thursday extended congratulations and best wishes to the newly-appointed Energy Minister Ghising. “The country still needs more electricity, 20,000-30,000 megawatts of electricity is needed. If we try to stop production now, we will have to face a big problem after 10 years. ’
Ganesh Karki, chairman of IPPAN, said that the Nepal Electricity Authority (NEA) has been putting the power purchase agreement (PPA) on hold for a long time, citing that there is no market for electricity. He also urged Minister Ghising to create an environment conducive for investment in such a way to boost the morale of the private sector investors.
Reacting to this, Minister Ghising said that the private sector would be encouraged to invest more. “If the regulations and guidelines are changed, we will do it through the cabinet, even if we have to change the acts, we will do it through ordinances. ’
Stating that development of infrastructure including energy was impossible if the problems of forest sector were not addressed, Ghising said works ranging from regulation, directives to amendment acts would be forwarded in consultation with the Prime Minister. He also urged IPPAN to move ahead with concrete problems and solutions to the concrete problems that would clash with forests in energy, infrastructure and other sectors.
During the meeting, Minister Ghising made it clear that he would not run away from the problem once he comes to the place of decision saying that he has been appointed as the minister with the intention of making some changes. He said that they were aware of PPA, RCOD extension and contingency and would take initiative to resolve the problem.
During the meeting, IPPAN President Karki highlighted the works to be carried out by the Ministry, Department of Electricity Development and Nepal Electricity Authority for the development of the energy sector. Among the demands put forth by the Energy Ministry include facilitation in the EIA÷IEE related to the Ministry of Forest, bringing a plan to increase electricity consumption, involving the private sector in the construction of transmission lines, initiating the issuance of shares of hydropower companies that have been stalled for a long time even after the approval of the Electricity Regulatory Commission and paving the way for the private sector in electricity trade.
Among the demands put forth by the Department of Electricity Development include increasing the license period to 50 years as per the Electricity Act, 2049 BS and amending the directives discouraged arbitrary penalties and penalties. The works that the NEA has to do include extending the PPA of the projects that have applied for connection agreement and PPA, extending the RCOD deadline by three years, immediately forwarding the PPA of projects up to 10 MW, scrapping the contingency provision, scrapping the hydrology penalty, making arrangements to modify the energy table and automatically PPA should be made when the capacity of the projects under construction increases by 25 percent The demands included that the system should be continued.
