The Minister of Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development, Kulman Ghising, has urged the Electricity Regulatory Commission to set competitive rates for the power purchase agreements (PPA) of hydropower projects.

The minister, Kulman Ghising, while receiving the Commission’s annual report for the past fiscal year 2024/25 on Wednesday, emphasized the need to set competitive rates to make the energy produced from hydropower projects more affordable, competitive, and transparent. The report was presented to Minister Ghising by the Commission’s Chairperson, Ram Prasad Dhital.

Giving directions to the officials of the Commission, Minister Ghising said, “The current rates for solar energy are already on a competitive basis, which has made PPAs competitive and transparent. Similarly, to determine the actual price for hydropower project PPAs, prepare the base rates and tender-related documents to conduct PPA competitions in a standardized manner.”

The Nepal Electricity Authority is currently procuring solar energy through a competitive process. For this, the maximum base rate for competition is NPR 5.94 (five rupees and ninety-four paisa) per unit. The PPA rates for hydropower projects are NPR 4.80 per unit during the rainy season and NPR 8.40 per unit during the winter season, respectively.

Giving directions to the officials of the Commission to make the work of the regulatory body more effective, Minister Ghising urged them to focus their activities in a way that promotes and encourages the private sector while ensuring the Authority’s operations remain sustainable.