Kathmandu. The Independent Power Producers’ Association of Nepal (IPPAN) has submitted 13 demands to the Nepal Electricity Authority (NEA), including the immediate opening of PPA for 13,000 MW hydropower projects.

A team led by IPPAN Chairman Ganesh Karki on Sunday congratulated the newly appointed Executive Director of Nepal Electricity Authority (NEA) Manoj Silwal and submitted the demands including opening of PPAs of all the projects that have applied for the connection agreement and PPA so far.

Although PPA was opened for all projects less than 10 MW before the budget for the fiscal year 2082/083 BS, the budget has demanded to immediately open PPA for projects based on river flow (RoR) and to move ahead due to lack of guarantee of PPA.

Likewise, the committee has demanded to extend the deadline for final commercial production (RCOD) for hydropower projects by 3 years if they fail to generate electricity in the stipulated time due to floods, landslide, earthquake, economic recession, shortage of explosives, delay in land acquisition and permission to cut trees.

Similarly, due to climate change, the melting of snow in the Himalayas is increasing rapidly and due to which the water flow in the rivers and streams of Nepal is continuously decreasing and the power generation capacity of hydropower projects is decreasing. There has also been a demand for arrangements.

Similarly, in case of power failure of any project due to the transmission line, the interest should be capitalized till the completion of the transmission line and the principal amount should also be restructured and the period up to 6 months will be counted as good loan and if the power cannot be generated by the fiscal years 2082/83, 2083/84 and 2084/85, the PPA of the projects will automatically be converted into take and pay if the electricity is not generated within the fiscal year 2089/90. It has also demanded the removal of the provision to be changed.

Likewise, the PPA rate of small and old projects is low than the previous one and due to the decrease in production due to climate change, the projects are on the verge of becoming crippled due to inability to pay the principal interest.

Likewise, making arrangements for revising the energy table after one year of the operation of the hydropower project as none of the hydropower projects have been able to generate predetermined electricity due to the decrease in hydrology of all the rivers due to climate change. Likewise, IPPAN has also demanded the government to involve the private sector (promoter companies of the private sector projects connected to the transmission line) in the under-construction transmission lines for the construction of the transmission line as there is still a situation of wastage of electricity due to the delay in the construction of the transmission line and to remove the problem of electricity supply due to lack of capacity of the transmission line.

NEA Executive Director Silwal said that the NEA and the private sector should walk hand in hand. “Both have to walk together, they can’t walk without each other, both drown when they walk alone. “The NEA will move ahead seriously regarding the problems of the private sector,” he said, adding that PPA should be forwarded considering the power trade agreement with India and the situation of power consumption. ’

Stating that the NRA was ready to work without any bias and according to the rules, he said that Force Major was a valid reason for extending the RCOD deadline and urged the NRA to inform the Authority immediately if there is any delay due to other reasons. “If there is any delay in the resumption of the project due to any reason, please inform us immediately, even if the joint meeting of both the parties is virtual and if the reason goes ahead with the reason, the RCOD deadline can be extended,” he said. ’

Silwal said that NEA was ready to facilitate the new PPA rate and other issues as the higher body had to decide on it.