Ministry of Energy Forms High-Level Committees to Review Power Purchase Agreements and Licensing

Kathmandu. The Ministry of Energy, Water Resources and Irrigation has formed two separate high-level committees to conduct a detailed study of Power Purchase Agreements (PPA) executed by the Nepal Electricity Authority and licenses issued by the Department of Electricity Development.

These committees were established through a ministerial-level decision to implement the 100-point governance reform agenda approved by the Council of Ministers, aiming to make the ministry's performance result-oriented and transparent.

According to Ministry Spokesperson and Joint Secretary Sandeep Kumar Dev, a six-member committee led by Joint Secretary Dr. Rajan Bhattarai has been formed to conduct an in-depth analysis of the policy, technical, and economic aspects of all PPAs concluded by the Nepal Electricity Authority to date. This committee will identify policy and legal hurdles in the PPA process, analyze potential risks, and provide concrete recommendations for improvement.

The committee is also tasked with suggesting necessary policy reforms to ensure that future power purchase agreements are more transparent, competitive, and aligned with national interests.

Similarly, another committee has been formed to review the current status and progress of electricity generation and survey licenses issued by the Department of Electricity Development at various times. This five-member committee, led by Joint Secretary Mohan Shakya, will identify weaknesses in the licensing process.

The committee will submit a report on how to make this process more organized and transparent in the future, while also aiming to discourage the trend of holding river projects without development.

The government has initiated these studies on critical energy sector issues to effectively advance its governance reform roadmap. Both committees will submit their reports to the ministry upon completion of their studies in accordance with their mandates.