Independent Power Producers Association Nepal (IPPAN) has welcomed the decision of the government of Nepal to approve the ‘Energy Development Roadmap and Action Plan-2081.

Organising a press conference to express its view on the Energy Development and Action Plan-2081 on Friday, President of IPPAN Ganesh Karki said that the roadmap is a historic step of the government in the hydropower development and make the country prosperous.

The government has made public the Energy Development Roadmap and Action Plan-2081 with the target of increasing the electricity generation to 28,500 MW by 2035.

He said that the IPPAN, an umbrella organisation of 600 energy-developing institutions, welcomed the approval of the Energy Development Roadmap and Action Plan-2081 as it would expedite the development works of hydropower projects by addressing the existing challenges faced by developers.

Stating that the government has set goals for energy development, identified existing obstacles, amended the laws necessary to resolve them and identified sources of assurance, he expressed his hope that existing problems of land acquisition, and forest clearance would be resolved and expedite works on hydropower projects.

He said that the roadmap would not only support hydropower generation but also accelerate economic activities and economic development.

If this roadmap is implemented, the government will receive Rs. 375 billion in VAT alone during the project construction period, Rs. 2.5 billion annually in royalties, and Rs. 88 billion in revenue.

The project will generate 750,000 jobs annually and 150,000 long-term jobs throughout the project operation period.

Karki believed that the target of generating electricity of 28,500 MW by 2035 is possible if the government works on policy reforms and facilitates developers.

He asked the government to make arrangements for opening the Power Purchase Agreement (PPA) immediately as hydropower projects with the capacity to generate 10,000 MW have been submitted to the Nepal Electricity Authority for PPA after completing the survey work.

Similarly, hydropower projects with a capacity of 10,700 MW have applied to the Department of Electricity Development to obtain construction permits.

Stating that the roadmap has proposed the investment of USD 46.5 billion in generation, and transmission of electricity, he said that there would not be a problem of resource management.

The IPPAN has demanded that IPOs and right share issuances in hydropower projects be facilitated to arrange USD 46.5 billion in financial resources required for the implementation of the roadmap and that the net worth requirement for hydropower companies be removed.

To implement the roadmap, it has demanded that banks and financial institutions should increase their lending to the energy sector by 2 per cent every year, reaching 20 per cent within 10 years.

He said that the private sector of Nepal could arrange investment if the government made private sector-friendly policy.

“We want to ask the government to introduce a private sector-friendly Electricity Act by incorporating the suggestions made by the private sector on the proposed ‘Electricity Bill,” he said.

According to IPPAN, it has demanded the removal of the hydrological penalty imposed on hydropower projects above 10 MW, as climate change has caused changes in river flow and reduced electricity generation.

Source: Rising Nepal