Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Independent Power Producers’ Association of Nepal (IPPAN) has announced plans for protests following the government’s decision to adopt a “Take and Pay” policy for Power Purchase Agreements (PPAs) for Run-of-River (RoR) hydropower projects. At a gathering in Kathmandu on Thursday, energy producers warned that the policy threatens their investments and vowed to escalate their response, including shutting down powerhouses. They also demanded the resignation of Energy Minister Deepak Khadka.
IPPAN President Ganesh Karki stated that the “Take and Pay” policy leaves producers with no choice but to protest. “We must show where we stand. We may not take to the streets with slogans or burn tires, but we can shut down powerhouses if needed,” Karki said. IPPAN advisor Arun Subedi insisted that Minister Khadka either take responsibility for the policy or resign. “In a democracy, those who shirk accountability have no place in office,” he added.
Former IPPAN Deputy Secretary-General Gore Sherpa echoed the sentiment, stating that the minister cannot evade responsibility by claiming ignorance of how the policy was included in the budget. “Either fix it and work with the private sector, or resign,” Sherpa demanded.
Producers claim the policy jeopardizes investments worth NPR 66 billion across 17,171 projects, as the Nepal Electricity Authority (NEA) would only purchase electricity when needed, leaving projects financially vulnerable. IPPAN has appointed Senior Vice-President Mohan Dangi to lead the formulation of protest strategies based on suggestions from the gathering. With tensions rising, the energy sector braces for potential disruptions as producers push back against the government’s policy shift.
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