nepalenergyforum

[nepalenergyforum]

NEPSE Dips Slightly; Modi and Tehrathum Hydropower Hit Positive Circuit

June 25, Kathmandu – The Nepal Stock Exchange (NEPSE) index remained relatively stable on Wednesday. After a decline of 0.22 points on Tuesday, the market dropped slightly again by 0.33 points on Wednesday. Reviewing the trading activity over Tuesday and Wednesday, the NEPSE index showed only marginal changes, and there was little improvement in overall transaction volume. Investors are currently…

[nepalenergyforum]

Government Drops 'Take and Pay' Clause to Ease Hydropower Concerns

KATHMANDU, June 25: The government has amended a clause in the budget following controversy over the ‘take and pay’ provision in the hydropower sector. Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Tuesday proposed a revision to Clause No 227 of the budget during a session of the House of Representatives, clarifying the government’s position on the issue. Replying to the…

[nepalenergyforum]

Energy Minister Khadka Departs for China to Attend Energy Summit

KATHMANDU, JUNE 24: Minister for Energy, Water Resources, and Irrigation Deepak Khadka has left for China to attend a ministerial-level energy meeting. He departed on Monday night to participate in the 5th Energy Ministers’ Meeting being organized by the Shanghai Cooperation Organization (SCO) in Ningbo City, Zhejiang Province, China. According to the Energy Minister’s Secretariat, the meeting…

[nepalenergyforum]

Budget Revision: Oli–Deuba Pact to Eliminate ‘Take and Pay’ Policy

Kathmandu — Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba have reached an agreement to remove the “Take and Pay” provision included in the budget for the electricity purchase and sale agreement (PPA). In the Prime Minister’s chamber in Parliament, Deuba and Oli reached an agreement on Monday evening to remove the provision without sending a message of budget…

[nepalenergyforum]

MD Shakya Inspects New Bharatpur 220 kV Substation

Kathmandu — Hitendra Dev Shakya, Managing Director of the Nepal Electricity Authority, has inspected the New Bharatpur 220 kV substation located in Bharatpur. On Monday, Shakya, along with Deputy Managing Director of the Authority’s Transmission Directorate, Rajan Dhakal, and a technical team, carried out the inspection. Shakya instructed that the technical issues observed at the New Bharatpur…

[nepalenergyforum]

Stakeholders Seek Commitment for Transmission Line in PPA

Kathmandu- Hitendradev Shakya, Managing Director of Nepal Electricity Authority, has said that they want to ensure the construction of transmission lines in the upcoming Power Purchase Agreement (PPA). He said that the current problem is transmission line rather than power generation, so the authority will seek to ensure it. In a meeting with journalists on Saturday, Shakya said that it would be…

[nepalenergyforum]

Private Sector Set to Access Electricity Transmission for Buying and Selling: Draft Directive

If the directive, being developed three decades after the law was enacted, gets approved, not only the Authority but also energy developers, companies involved in electricity trade, and large electricity consumers will be allowed to use the transmission line for buying and selling electricity. Although the government itself enacted a law three decades ago to open the door for the private sector…

[nepalenergyforum]

The Chimkhola–Mangale–Rahughat Hydropower Project has started test production

Myagdi — The 37.5-megawatt Chimkhola–Mangale–Rahughat Hydropower Project, constructed in Raghuganga Rural Municipality, has begun test production. The project, promoted by Tudi Power Company Limited, has started electricity generation after completing the testing of physical structures including the dam, desander (water-settling basin), and tunnel. Tudi Power representative Indra Dhakal stated…

[nepalenergyforum]

Future of Nepal-Bangladesh Power Trade Uncertain as India Corridor Raises Concerns

The fate of importing 500 megawatts (MW) of electricity from Nepal’s 900MW Upper Karnali Hydropower project is hanging in the balance as government is set to scrap the accord as it has decided to suspend all agreements under the Special Powers Act. Bangladesh also raised the geopolitical concerns as India had proposed using its 117-kilometre-long, 765kV high-voltage transmission corridor to…

[nepalenergyforum]

Energy Producers Threaten License Return; PM Vows Resolution by Monday

Kathmandu — The Independent Power Producers’ Association, Nepal (IPPAN), submitted a memorandum to Prime Minister KP Sharma Oli on the first day of their previously announced protest program. A delegation from IPPAN, led by Acting President Mohan Kumar Dangi, met Prime Minister Oli at the Office of the Prime Minister and Council of Ministers in Singha Durbar on Friday. They handed over a…

[nepalenergyforum]

Energy Developers Urge Withdrawal of 'Take and Pay' Provision Through Mass SMS Campaign

Kathmandu — Energy developers have sent an ‘SMS’ simultaneously to Prime Minister KP Sharma Oli, Finance Minister Bishnu Paudel, Energy Minister Deepak Khadka, and Nepal Electricity Authority Managing  Director Hitendra Dev Shakya, urging the government to withdraw the ‘Take and Pay’ provision introduced in the budget regarding the power purchase agreement. As part of their previously announced…

[nepalenergyforum]

Eastern Industrialists Call for Action on Frequent Power Tripping

Kathmandu — Entrepreneurs from the eastern region have urged the Nepal Electricity Authority to be more sensitive regarding the frequent power tripping that has been occurring in the industrial sector for a long time. They stated that despite repeatedly raising complaints with the concerned authorities, the issue has not been addressed and they have only received assurances so far. With the onset…

[nepalenergyforum]

IPPAN Protests Retention of 'Take and Pay' Provision in Budget

Kathmandu- The Independent Power Producers’ Association of Nepal (IPPAN) has announced the first phase of protests following Finance Minister Bishnu Paudel’s lack of commitment to removing the controversial ‘Take and Pay’ provision from the power purchase agreement (PPA) clause in the upcoming fiscal year 2025/26 budget. Acting President of IPPAN, Mohankumar Dangi, stated that the association…

[nepalenergyforum]

MCC Work Must Accelerate to Boost Nepal’s Infrastructure and Development

Now that operations are permitted, the program must move forward more quickly. The infrastructure it supports can shape Nepal’s economic future, and any delays would only hinder opportunities for growth, regional trade, and industrial development.   The Millennium Challenge Corporation (MCC) Nepal Compact will move forward as planned, thanks to a waiver from the U.S. Secretary of State in…

[nepalenergyforum]

NEA and Energy Ministry Lag in Recovering Billions from Industrial Power Dues

The energy ministry and the new leadership of the Nepal Electricity Authority have shown unusual lethargy in the recovery of billions of rupees 59 industrial and commercial firms owe to the utility. The government has failed to collect charges for uninterrupted electricity supply from dedicated feeders and trunk lines to the profit-making companies—the dues stem from the period between July 2015…

[nepalenergyforum]

Large Natural Gas Reserve Revealed in Dailekh Through China-Nepal Joint Study

Surkhet — A deposit of 1.12 billion cubic meters of natural gas has been discovered in Dailekh. According to the Department of Mines and Geology, a preliminary report based on geological studies conducted by the China Geological Survey and drilling carried out by China’s CNPC Xibu Engineering Company has revealed a large presence of methane gas. The final report, however, is expected to be…

[nepalenergyforum]

New Draft Law to Let Private Companies Supply Power Directly to Clients

KATHMANDU, June 19: In a major policy shift, the government has decided to allow private hydropower producers to sell electricity directly to their clients, breaking the long-standing monopoly of the Nepal Electricity Authority (NEA) in the power trade. On Wednesday, the Electricity Regulatory Commission (ERC) unveiled the draft of Open Access Directive 2025, which aims to facilitate private…