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The Government of Nepal has formed two separate high-level committees to review key structural issues in the country’s energy sector, including Power Purchase Agreements (PPAs) and the electricity licensing system, in a bid to improve transparency, accountability, and efficiency.

Minister for Energy, Water Resources and Irrigation Birajbhakt Shrestha announced the formation of the committees on Thursday, stating that the move is aimed at making the ministry’s performance more results-oriented and transparent.

Committee to Review Power Purchase Agreements (PPA)

A six-member committee has been formed under the coordination of Joint Secretary Dr. Rajan Bhattarai to study existing Power Purchase Agreements signed by the Nepal Electricity Authority.

The committee will analyze the current status of PPAs and identify policy, technical, financial, and legal bottlenecks affecting the electricity procurement system.

It has also been tasked with recommending reforms to make future PPAs more transparent, competitive, and aligned with national energy interests, ensuring better governance in long-term energy contracts.

Committee on Licensing System in Hydropower Sector

In a parallel initiative, the ministry has formed another five-member committee led by Joint Secretary Mohan Shakya to review licenses issued by the Department of Electricity Development.

This committee will evaluate the current status and progress of existing licenses and identify weaknesses in the licensing process, including policy gaps, procedural inefficiencies, and regulatory challenges.

It will also propose reforms to ensure that future licensing procedures are more transparent, competitive, and investment-friendly, while safeguarding national interests in hydropower development.

Focus on Reform in Energy Governance

Officials said the formation of the two committees reflects the government’s broader push to reform Nepal’s energy sector governance, which plays a critical role in economic growth, foreign investment attraction, and long-term energy security.

The recommendations from both committees are expected to guide future policy decisions in electricity trade, hydropower licensing, and infrastructure development, areas that remain central to Nepal’s ambitions of becoming a regional energy exporter.