Independent Power Producers’ Association of Nepal (IPPAN) has announced a protest campaign against the government’s plan to implement a “Take and Pay” model for Power Purchase Agreements (PPA) in run-of-river hydro projects under the FY 2082/83 budget.
The Independent Power Producers’ Association Nepal (IPPAN) has declared a protest movement against a provision in the Government of Nepal’s upcoming fiscal year 2082/83 budget that mandates “Take and Pay” based Power Purchase Agreements (PPA) for run-of-river hydropower projects.
According to IPPAN, the implementation of this policy could jeopardize more than 66 arba rupees of investment in over 350 hydropower projects with a combined capacity of 17,000 megawatts, currently being studied by the private sector. The organization warns that commercial banks are unwilling to fund projects under the “Take and Pay” model, as it lacks guaranteed revenue security.
Despite repeated memorandums and appeals, IPPAN says the government has not taken the concerns of private energy producers seriously. As a result, the association has launched the first phase of its protest program.
The protest schedule includes:
Asar 6: Submitting another memorandum to the Prime Minister, Energy Minister, and Finance Minister.
Asar 7: Sending SMS messages demanding a rollback of the policy.
Asar 8: Spreading messages on social media against the provision.
Asar 9: Holding discussions with other private sector organizations and releasing a joint statement.
Asar 10: Sending coordinated SMS messages to the Speaker and Chief Whip of the House of Representatives.
IPPAN has further warned that if the “Take and Pay” provision is not withdrawn before the budget is passed, they will escalate the movement to second and third phases, which could include handing over projects to the government.
This article was originally published on bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
