Energy entrepreneurs protest Nepal’s ‘Take and Pay’ Policy, demand reversal

June 22, 2025, 02:45:48 PM |

KATHMANDU: Energy entrepreneurs in Nepal have escalated their opposition to the government’s ‘Take and Pay’ (T&P) policy for power purchase agreements (PPAs) introduced in the 2025/26 budget, launching a social media campaign under the hashtag #BlackBanner to demand its immediate withdrawal. The policy, applicable to run-of-the-river (ROR) hydropower projects developed by the private sector, has sparked widespread criticism for threatening the viability of Nepal’s energy sector.

On Saturday, energy entrepreneurs flooded social media platforms, tagging Prime Minister KP Sharma Oli, Deputy Prime Minister and Finance Minister Bishnu Paudel, Energy Minister Dipak Khadka, and Nepal Electricity Authority (NEA) Executive Director Hitendra Dev Shakya.

Their posts accused the T&P policy of “destroying the private energy sector, inviting load-shedding, bankrupting investors, and crippling the national economy.” The campaign follows a memorandum submitted to PM Oli on Friday and a mass SMS initiative targeting key officials.

The Independent Power Producers’ Association of Nepal (IPPAN), led by Senior Vice President and protest committee coordinator Mohankumar Dangi, has spearheaded the movement.

Dangi stated that the social media push marks the third day of a phased agitation. If the government fails to address their demands, IPPAN plans to lobby political party chief whips in parliament. Further escalation could involve street protests and, in a final phase, symbolically handing over the keys of private hydropower projects to the government.

The T&P policy, announced in the budget on May 29, 2025, mandates that PPAs for ROR hydropower projects will only be signed under T&P terms, where payment is made solely for electricity consumed. Entrepreneurs argue this shift from the earlier ‘Take or Pay’ model, which guaranteed payment for generated power, jeopardizes investments and deters future projects, risking a return to power shortages.

Nepal’s private sector currently contributes significantly to the country’s 2,800 MW installed hydropower capacity, with plans to add 3,000 MW by 2027.

The protests, ongoing since June 20, reflect growing tensions between the government and private energy producers, with IPPAN warning that the policy could destabilize Nepal’s economy and energy security. The government has yet to respond officially to the demands.

Fiscal Nepal |

Sunday June 22, 2025, 02:45:48 PM |