Kathmandu: Minister for Energy, Water Resources and Irrigation, Kulman Ghising, has called upon the Electricity Regulation Commission to implement a competitive power purchase agreement (PPA) specifically for the hydropower sector.
According to National News Agency Nepal, Minister Ghising suggested the establishment of a base rate to facilitate competitive and transparent PPAs in hydropower, aiming to enhance energy accessibility. He made these remarks while receiving a report from the Commission Chairman, Ram Prasad Dhital. Minister Ghising highlighted the existing competitive base rate in solar energy, which allows for PPAs to be conducted transparently, and proposed a similar approach for hydropower projects.
Currently, the Nepal Electricity Authority (NEA) procures solar energy at competitive prices, with the maximum rate per unit set at Rs 5.94. In contrast, the PPA rate for hydropower is Rs 4.80 per unit during the monsoon and Rs 8.80 per unit during winter. Minister Ghising also urged Commission officials to enhance the effectiveness of regulations and emphasized the need to promote private sector involvement.