Kathmandu, July 14: Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, has said the Ministry would conduct a study on the status of hydropower projects which have not forwarded construction irrespective of getting license for long. The projects would be categorized based on their progress and action taken accordingly, he added.
Minister Shrestha said it during a meeting he had with the newly elected officer bearers of the Independent Power Producers’ Association of Nepal (IPPAN) at the Ministry on Monday. He, however, pledged full support from government for the genuine investors.
The Minister made it clear that the trend of not forwarding construction works despite receiving license for long would be highly discouraged. He urged IPPAN as well to not encourage sluggishness. The issues in energy sector would be categorized based on priorities rather than adopting a blanket approach, Shrestha said, adding that policy level anomalies needs immediate end with the new Act, regulation and directive in place.
According to him, government was for expanding the role of private sector in power trade. Private sector plays a vital role in market management, increase in energy consumption, transmission and distribution in addition to energy production, the Minister reminded.
Minister Shrestha further viewed concept of ‘energy mix’ could be forwarded as part of the future energy plan in the wake of climate change effects that has impacted mode of energy production. A proposal of appointing an energy attaché at Nepal Embassy in India was advanced for the expansion of power trade. He also shared that government was working actively for the expansion of energy diplomacy.
The Minister also expressed his readiness to form a high-level mechanism with the collaboration of private sector to resolve the problems facing policy level and implementation problems in energy sector.
IPPAN handed over a 38-point suggestion to the Ministry for resolving the policy and structural problems facing the energy development in Nepal. The suggestion list included license to private sector for power production, construction of common transmission line, investment-friendly energy Act, extension of license validity, promotion of green energy, improvement in PPA, simplification in environmental permit.
Chairman of IPPAN, Mohan Dangi, claimed that 30,000 MW electricity could be generated in coming 10 years if the government ensured policy facilitation. He expressed concern over delay in PPA and cancellation of permit. He urged the government to form a high level mechanism to resolve the problems facing energy sector. Financial closure is impossible unless PPA is ensured, Dangi said, adding that cancellation of license would negatively impact investment atmosphere.
