Energy entrepreneurs in Nepal have called for the Securities and Exchange Board of Nepal (SEBON) to introduce a separate procedure for issuing Initial Public Offerings (IPOs) specifically for hydropower companies. The demand was made at a press conference in Kathmandu on Wednesday by Green Energy Entrepreneurs Nepal, a newly formed organization representing energy entrepreneurs.

The group presented six key demands to the government, focusing on the need to address inequalities and improve the operational environment for hydropower companies.

These demands included the removal of inequalities in Power Purchase Agreements (PPAs) and an increase in the electricity purchase rate. They also called for the extension of the production permit period for hydropower projects to 50 years, along with the removal of the 35-year restriction on projects smaller than 10 MW.

Additionally, they requested a review of the technical aspects and inequalities in transmission line and grid connection agreements.

The group advocated for the reintroduction of a maximum tax rate of 1 percent on equipment, spare parts, and services purchased from abroad for joint ventures, similar to previous provisions. Lastly, they called for the immediate removal of unequal contracts for alternative energy projects.

The group also expressed concerns about SEBON’s current requirement that companies with a net worth of less than Rs 90 million be prohibited from issuing IPOs.

Surya Prasad Adhikari, founder coordinator of Green Energy Entrepreneurs Nepal, argued that this restriction is unfair to hydropower companies, as their net worth is not comparable to financial institutions.

“Net worth is not the same for hydropower companies as it is for financial institutions,” said Adhikari, urging that hydropower companies should be allowed to issue IPOs regardless of their net worth.

Energy entrepreneur Arun Subedi echoed this sentiment, stressing the need for a distinct procedure for hydropower companies to issue IPOs.

“Our IPO issuance system has been designed based on banks and financial institutions, but hydropower companies have different dynamics,” said Subedi.

Advocate Janak Karki also voiced strong criticism of the existing electricity bill, calling for it to be scrapped and replaced with a new one that is more business-friendly and benefits investors in the hydropower sector.

“The bill does not clarify the fate of the money invested in hydro companies. It should be repealed and replaced with an act that supports investors,” Karki stated.

Energy entrepreneur Dr Krishna Prasad Dulal raised concerns about the financial burden on hydropower companies, particularly regarding electricity costs.

“I receive around Rs 3 per unit for the electricity I produce, but when I use that same electricity, I have to pay Rs 11. This disparity needs to be addressed,” said Dulal.

Pushkar Dhungel highlighted the importance of protecting small energy projects, highlighting their contribution to rural infrastructure development and national security.

“Thanks to small projects, we now have roads reaching every village, and our ability to build tunnels and work with local consultants has increased. We need to protect these small projects,” Dhungel said.

Source: Khabar Hub