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IPPAN demands immediate postponement of electricity power and energy schedule determination process

. Independent Power Producers’ Association, Nepal (IPPAN) has demanded immediate stay of the ‘Electricity Power and Energy Schedule Determination Procedure-2083’. Expressing its serious disagreement with the ‘Electricity Power and Energy Schedule Determination Procedure-2083’ recently issued by the Nepal Electricity Authority, IPPAN demanded immediate halt of the procedure.

Submitting a memorandum to the Nepal Electricity Authority through IPPAN Chairman Mohan Kumar Dangi, the EPPAN stated that some provisions included in the policy are impractical, discourage private investment and affect the government’s goal of generating 30,000 MW in the next 10 years.TAG_OPEN_div_25

The memorandum states that the method has been introduced in such a way that it will adversely affect the technical and financial viability of the hydropower project and it has been claimed that it will create obstacles in the development of the energy sector. IPPAN has pointed to the provision regarding the efficiency of electromechanical equipment as the first objectionable aspect of the method. According to the organization, the efficiency of turbines, generators and transformers should be kept within a certain limit while upgrading the project, which will limit the opportunities to use the advanced technology available in the world market and the increase in the production capacity through technology will be stopped.

IPPAN has also expressed dissatisfaction with the provision related to the evaluation of hydrology data.TAG_OPEN_div_21 According to the organization, even though it can be evaluated on the basis of the data available with the government agencies, only the {{TAG_CLOSE_u_13 TAG_OPEN_u_13}}} method has been recognized and the entire responsibility has been imposed on the promoters and consultants.

The organization has also called the provision of capacity enhancement impractical. It has been argued that only 5 to 10 percent capacity increase is possible after detailed design in many projects, which would hinder the maximum utilization of natural resources.

According to IPPAN, the new methodology has made provisions for the new methodology as the Board of Directors of Nepal Electricity Authority (NEA) has already decided to increase the capacity of the projects with PPA up to 25 percent and after fulfilling the necessary conditions.TAG_OPEN_div_17

The organization has stated that if these provisions are implemented as it is, it will have a negative impact on the capacity expansion of hydropower projects, attract investment and the long-term development of the energy sector.TAG_OPEN_div_15

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