IPPAN welcomes long-term power trade agreement, calls for full opening of PPA

By A Staff Reporter,Kathmandu, Jan. 8: Independent Power Producers’ Association, Nepal (IPPAN) has welcomed the long-term electricity trade agreement signed between Nepal and India to export 10,000 megawatts of electricity in the next 10 years.

Speaking at a press conference on Sunday, President of IPPAN Ganesh Karki expressed his belief that the private sector of Nepal can also benefit greatly from the long-term electricity trade agreement signed between Nepal and India during Nepal visit of Minister for External Affairs of India Dr. S. Jaishankar on January 4 and 5.     

He said that the long-term electricity trade agreement, which will allow 10,000 megawatts of electricity to be exported to India every day in the next 10 years, is historic and welcome. Since 1971, electricity has been exchanged between Nepal and India, and a Power Trade Agreement (PTA) was signed in 2014. Based on the same agreement, up to 500 megawatts of electricity is being exported to India for a short period of time from Nepal.

He said that the private sector would also contribute significantly to the export of 10,000 megawatts of electricity. In the current fiscal year, electricity worth more than Rs. 15 billion was exported from Nepal to India, and a large part of it was hydropower projects built by the private sector.

Along with this agreement, the Power Purchase Agreement (PPA) which is currently being held by the Nepal Electricity Authority should be fully opened and licenses should be given to the private sector for electricity export, said the IPPAN. It said that the banks and financial institutions should increase investment in energy, and the government should announce more concessions for energy production. It demanded that the government should be more active and move immediately to solve the administrative and procedural problems. President Karki said that the agreement would create important opportunities in Nepal's energy development and open more doors. He said, "It is impossible to export so much electricity without the involvement of the private sector. The private sector is also ready to achieve the goal of electricity export.”