Nepal’s Energy Minister urges private sector not to panic over new upcoming bills in energy sector

Nepal’s Energy, Water Resources, and Irrigation Minister, Deepak Khadka, has urged stakeholders not to panic over the introduction of energy-related bills. Speaking at the 23rd Annual General Meeting of the Independent Power Producers’ Association of Nepal, Khadka assured that the laws would be framed in the national interest.
 
Addressing concerns about IPOs for energy projects and the Required Commercial Operation Date in Power Purchase Agreements (PPAs), Khadka revealed that a committee has been formed to address these issues. Decisions will be made based on the status of individual projects. He also mentioned that, following Prime Minister KP Oli’s directive, PPAs have been prioritised in areas with existing transmission lines. Land acquisition challenges could be addressed through legal reforms.
 
Khadka highlighted the government’s roadmap to produce 28,500 MW of electricity, which could create employment for hundreds of thousands of people.
 
Nepali Congress President and former Prime Minister Sher Bahadur Deuba, who also spoke at the event, stressed the private sector’s role in eliminating load shedding from Nepal’s energy sector. Deuba criticised the suspension of IPOs for hydropower projects, calling the move inappropriate. He urged the government to ensure a secure investment environment for both domestic and foreign investors and emphasised the need for active private sector participation. Deuba also called for increased focus on hydroelectric power, describing green energy as a natural gift to Nepal. He recalled the start of the 39 MW power trade during his tenure as Prime Minister.