As the climate crisis intensifies, the global search for sustainable and clean energy solutions has become more urgent than ever. Marked by a steady rise in global average temperatures and increasingly erratic weather patterns, climate change has become the defining challenge of our time for all countries, including Nepal and the whole of South Asia.
A major cause of climate change is the global dependence on fossil fuels. Thus, to mitigate greenhouse gas emissions, it is imperative that countries transition to clean, renewable energy systems, earlier than later. In this regard, green hydrogen—produced via water electrolysis powered by renewable energy—has emerged as a potential critical enabler for countries worldwide to transition toward net-zero economies.
Nepal currently generates around 3,000 MW of hydropower, with plans to expand capacity to 28,500 MW within a decade through $ 46.5 billion in public and private investments. With hydroelectricity recognised as a priority sector by the government, there are credible grounds to foresee potential in leveraging surplus electricity towards making green hydrogen a transformative energy alternative. Additionally, specialised research institutions such as Green Hydrogen Lab at Kathmandu University has been working to develop necessary technologies to support this transition. This represents a major opportunity to engender clean industrialization domestically, diversify energy exports, and support a regional clean energy transition, according to South Asia Watch on Trade, Economics and Environment (SAWTEE).
Against this background, Senior Fellow at the Madhu Marasini and Economist at SAWTEE Prajol Joshi has prepared an issue note on “Green Hydrogen in Nepal: Unlocking a sustainable energy future”. To this, SAWTEE and the WTO Chairs Programme–Nepal at the Kathmandu University School of Management (KUSOM) jointly organized a stakeholder discussion programme to discuss the prospects of green hydrogen in Nepal, ongoing developments in the sector at global and regional levels, the challenges, and the way ahead.
In his trigger presentation Marasini, on the occasion, highlighted that energy today is more than just a resource; it has become a key tool in foreign policy and international trade. Energy diplomacy now plays a vital role in global political relations, highlighting the need for stronger coordination between nations.
Likewise, Team Leader of the Green Hydrogen Lab at KU Dr Biraj Singh Thapa emphasised that hydrogen continues to gain momentum globally, unlike in past energy transitions, Nepal is progressing in parallel with other countries, both developing and developed, in key areas such as research, human resource development, and other. "This presents a valuable opportunity for Nepal to build a hydrogen economy that reflects its specific needs and strengths."
Executive Director at the Alternative Energy Promotion Centre (AEPC) Nawaraj Dhakal remarked that green hydrogen is gaining attention in Nepal, with its inclusion in NDC 3.0 and the national budget. But awareness is still low. The government, academia, and private sector must work together to implement the policies to support adoption of green hydrogen with a clear roadmap.
Similarly, joint secretary at the Ministry of Forest and Environment Dr Maheshwar Dhakal said that green hydrogen has been included in Nepal’s NDC 3.0, signaling a shift toward sustainable energy and reduced reliance on imported fossil fuels. "Strengthening academic collaboration by Nepali Universities with Universities in China and India can support and accelerate progress through shared knowledge and research," he added.
Executive Member of the Independent Power Producers’ Association of Nepal (IPPAN) Suman Joshi, on the occasion, stated that government needs to subsidise backward and forward linkages and processes for the promotion of green hydrogen within Nepal. "That will greatly encourage private sectors to invest in green hydrogen as it can also be considered a value addition to hydropower generation," she added.
Joint secretary at the Water and Energy Commission Secretariat Sandip Kumar Dev said that to build public awareness and trust towards green hydrogen, we need to demonstrate real projects, at least through pilot projects. "The government must create supportive environment for encouraging the private sector to make investments in the sector," he said.
Likewise, vice chancellor of Kathmandu University (KU) Prof Dr Achyut Wagle stated that KU, as an academic institution, is ready to play its role in developing necessary human resources and technical innovations. "We aim to partner with utility companies, municipalities, and the private sector to drive component-based projects, despite technical challenges," he added.
Chair Emeritus of SAWTEE Dr Posh Raj Pandey concluded the programme by stating that there is a need to assess the supply and demand of green hydrogen to better understand its eco system. He further emphasised the need to be aware of hydrogen leakages while developing the ecosystem.
Participants included policymakers, academics, journalists, energy experts, industry stakeholders, and members of civil society.
Monday, July 14, 2025
Green Hydrogen in Nepal: Unlocking a sustainable energy future
Sunday, March 9, 2025
Ethical wealth creation key to growth and bridging inequality: Dr Subramanian Krishnamurthy
Ethical wealth creation is key to growth and bridging inequality, according to International Monetary Fund (IMF) executive director and former chief economic advisor of the Government of India, Dr Subramanian Krishnamurthy Venkata.
Speaking at the first Prabhakar SJB Rana Memorial Lecture as the keynote speaker in Kathmandu today, he also stressed religious capitalism. “Wealth generation is not a necessary evil but a boon – and this is an ideology that has been adopted from the ideologies of the East – built from dharmic capitalism and the civilizational ethos that enabled our ancestors to pursue and receive enormous success,” he added.
“Socialism and communism are the ideologies that originated in the West – not in the East," he said, adding that the entire ideology was bankrolled by a capitalist. “The dharmas – four purusharthas that include Dharma, Artha, Kaama and Mokshya are parts of our ethos,” Dr Subramanian said, reminding the Sri Suktam. “Wealth is not a necessary evil, but a boon to be received. So, we have to disband the imported ideologies.”
He also reminded ethical wealth creation for a prosperous nation, in the program organized by the Nepal-India Chamber of Commerce and Industry (NICCI) to honor the late Rana’s contribution to the economy. “Inclusive growth is critical and India has been able to have an inclusive growth. India’s poverty has decreased and consumption inequality has declined significantly, according to the latest survey.”
The speakers, on the occasion, remembered late Prabhakar SJB Rana as a towering figure, very close to the political powers, who had maintained good relations with political parties but never took advantage for his benefit.
Remembering his father, Siddhartha SJB Rana, chairman of Tara Management, said that Nepal was ahead of India in the 90s in opening up the economy, but Nepal somewhat stalled. “A disheartening thing is that Nepal has prioritized changing the political systems without addressing economic needs,” he said suggesting that the Bhairahawa and Pokhara Airports could have been fully operational, had the government well planned.
The NICCI has organized 'the Prabhakar SJB Rana Memorial Lecture: Celebrating Leadership, Vision, and Legacy' to celebrate his legacy and contribution to the economy and nation.
Late Rana, the founder President of NICCI, played a pivotal role in Nepal's development by founding not only NICCI, but also a range of vital business and social organizations such as the Hotel Association of Nepal (HAN), Independent Power Producers’ Association, Nepal (IPPAN), PATA Nepal Chapter, and Nepal Heritage Society.
Likewise, Prasanna Srivastava, Deputy Chief of Mission, Embassy of India to Nepal in Kathmandu, noted some of the major achievements of the Indian government in Nepal. He highlighted the recent commerce secretary-level talks that followed the trade and transit meet in January this year. He also highlighted Nepal-India engagement in facilitating bilateral trade and energy, the tripartite power agreement between Nepal, India, and Bangladesh, and the net revenue Nepal earned by exporting energy, apart from digital connectivity.
“The NICCI is honored to remember Mr Rana as a visionary leader, entrepreneur, and trailblazer in Nepal’s overall business, hospitality sector, industry and hydropower,” NICCI President Sunil KC said, on the occasion, “The NICCI will organize Prabhakar SJB Rana Memorial Lecture every two years.”
NICCI Immediate Past President (IPP) Mrs Shreejana Rana, on the occasion, remembered late Prabhakar SJB Rana as a trailblazer in Nepal’s private sector.
NICCI, on the occasion, also launched “Business Climate Survey for Indian Companies in Nepal, 2024." The survey, led by Kuber Chalise, and supported by Sweta Karki and Sajina Rai, have given recommendations for the government to help facilitate the Indian joint ventures (JV) so that they can create more jobs in the country and pay more tax to the government coffer.
NICCI vice president and Surya Nepal managing director Ravi Kumar Rayavaram, on the occasion thanked all the participants.
The NICCI, a not-for-profit organization, was founded in 1993 by late Prabhakar SJB Rana. It has played a key role in promoting bilateral economic relations focusing on key sectors such as trade, transit, logistics, tourism, energy, infrastructure, and FDI since its establishment.
Sunday, October 24, 2021
IPPAN warns government to not discourage power producers
The power producers today blamed the government for restricting private sector from getting survey licenses, production licenses and power purchase agreement (PPA) for hydropower projects.
Organising a press meet in the Valley today, The Independent Power Producers' Association Nepal (IPPAN) also demanded the government to revert the decision. According to them, a meeting chaired by the chief secretary on September 23 decided not to provide any survey licence to the private power producers. They also blamed the government for taking unilateral decision.
IPPAN also expressed its serious concern over the directive on non-life insurance fee recently endorsed by the Insurance Board. According to IPPAN, these provisions will discourage potential investors in the hydropower sector.
Demanding the government to adopt a flexible policy for the private sector power producers, under an open electricity trade policy, IPPAN president Krishna Prasad Acharya, on the occasion, said that the government should distribute electric stoves at concessional rates to increase electricity consumption, increase the use of electric vehicles and provide cheap electricity to industries.
IPPAN, on the occasion, also urged the government to formulate a cross-border electricity trade policy, expand quality transmission lines to sell and distribute electricity to neighbouring countries and formulate proper policy on transmission billing fees.
Wednesday, June 16, 2021
Floods and landslides damages 26 hydropower projects, multiple road sections
The floods and landslides triggered by incessant rainfall caused physical damage of around Rs 3 billion. It is estimated that the under construction 44 MW Super Madi Hydropower Project in Madi of Kaski alone has caused a loss of over Rs 1 billion, according to Independent Power Producers' Association (IPPAN).
The rainfall induced floods damaged 16 under construction projects and 10 projects generating electricity, the IPPAN confirmed, adding that more than two dozen hydropower projects were affected till 8 PM today.
"Most of the hydropower projects -- both under construction and completed -- in the Dordi Corridor, Marsyangdi Corridor and Madi Corridor have been affected by the floods and landslides," the IPPAN informed, adding that the details of the damage have not been received from all the places yet. "Thought there has been a lot of physical damages, no immediate reports of injuries or human casualties have been reported."
Construction materials, equipment, dams, tunnels and other structures of the hydropower projects under construction have been damaged due to the landslide, it adds.
The floods and landslides also damaged more than two dozen roads and more than a dozen bridges have collapsed in various places.
The Department of Roads (DoR) confirmed that most of the damage has been reported on Karnali Highway and Siddhartha Highway causing a loss of billions. "There still obstruction in 8 road sections till 8 PM today, and one-way transportation services came into operation in 11 places and two-way in three places of the blocked highway."
Wednesday, November 11, 2020
Dhalkebar substation charged at full capacity
Nepal Electricity Authority (NEA) completed the charging of the country’s first and the largest 400 kV capacity Dhalkebar substation at its full capacity today evening.
“With the operation of the substation at its full capacity, the 400 kV Dhalkebar-Muzaffarpur cross-border transmission line has also come into operation with full capacity from today, confirmed the authority. “Nepal will be able to transmit up to 1,000 megawatts (MW) of electricity through the the first-ever high-voltage 400 kV Dhalkebar-Muzaffarpur cross-border transmission line.”
The substation – the major hub for power exchange between Nepal and India – will ease the process of importing power to meet the increasing demand of electricity in Nepal while exporting electricity to India when the country has surplus energy. Currently, the country has surplus electricity, claims the Independent Power Producers’ Association of Nepal (IPPAN). The government should create a favourable environment within the country for the consumption of surplus energy by encouraging the domestic industries to utilise the electricity, when it is surplus in off-peak hours – night night time – by providing them electricity at subsidised rates, the association suggested the government.
The operation of the 400 kV Dhalkebar substation will also be useful for transmitting reliable electricity within the country from the east to west and vie versa, though NEA is yet to strengthen its transmission network within the country.
The Dhalkebar substation is going to be the backbone of Nepal’s power sector as it connects east-west electricity transmission in the country. However, with the delayed construction of transmission lines across the country including transmission lines of Kabeli Corridor, Koshi Corridor, Sunkoshi Corridor and Trishuli Corridor, Nepal will not be able to fully utilise the substation sooner.
The timely completion of the transmission line projects will help the country take maximum benefit from the operation of the Dhalkebar substation that is an important milestone for Nepal’s hydropower sector.
Initially charged at 132 kV in January 2016, Dhalkebar substation was helpful in importing 80 MW of electricity from India. But the substation was charged at 220 kV voltage in July, 2018.
The construction of 132 kV substation was started in 2010, whereas the construction of 400 kV substation was started in September 2018. But the construction of 400 kV substation at Dhalkebar has been completed by ABB India Limited under the supervision of NEA Engineering Company.
Scheduled to be completed by December 2019, the contract for the construction of Dhalkebar substation project had been awarded to ABB India Ltd in December 2017. However, the Covid-19 pandemic has pushed the construction duration.
Tuesday, September 22, 2020
New IFC report urges companies to take action to boost women’s contribution in the hydropower sector
Companies and women in Nepal would stand to benefit, if greater action were taken to improve women's participation in and contribution to the hydropower sector, a study carried out by the International Finance Corporation (IFC) – a member of the World Bank Group – reads.
The study of 20 companies is part of the Powered by Women initiative — a time-bound commitment by companies to build the business case for improved gender equality and diversity in renewable energy companies in Nepal.
The study – released today – was conducted between 2019 and 2020. Over two dozen executives and almost 250 employees working in 20 companies within Nepal's hydropower industry contributed to the research. “Women make up more than half of Nepal's population, yet the study reveals only 10 per cent of all employees in the country's hydropower sector are women," IFC country manager for Nepal, Bangladesh and Bhutan Wendy Werner has been quoted by the IFC in a press note. “Companies need to seize the opportunity to embark on more gender-sensitive and family-friendly policies to help boost staff productivity and attract and retain talent which will ultimately boost their businesses.
“We recognise the need to make conscious efforts to increase the number of women in the power sector,” vice president of Independent Power Producers' Association of Nepal (IPPAN) Ashish Garg said, adding that his organisation has already taken a forward step by making women participation in the executive committee mandatory. “By partnering with IFC on this important initiative, we are committing to championing this cause.”
The study also recommended that companies need to develop and enforce gender-sensitive policies, including mechanisms to address cases of bullying, sexual harassment, abuse and exploitation. More tailored programmes to support professional development opportunities for women, such as more robust recruiting efforts directed at women's advancement into leadership positions and targets for diversity in board representation, are also encouraged.
Meanwhile, at the community level, the study has urged increased support from companies to women-led businesses, including improving their access to finance, and efforts to train women in non-traditional roles within the sector.
The study – spearheaded by IFC's Hydro Environmental and Social Advisory team in partnership with the governments of Australia, Norway and Japan – has shown very few of those employed are in leadership positions, included in corporate boards or occupy non-traditional roles in the hydropower sector.
Despite the considerable scope for women to take up non-traditional roles in the hydropower sector, we found that most companies in Nepal have not yet initiated adequate efforts to realise this,” Asia Environment and Social Governance Team Leader for IFC Kate Lazarus has been quoted in the press release as saying. “While some companies, particularly those led by women entrepreneurs, do show willingness in this regard, there are still challenges in transforming that intent into action on the ground.”
The report has identified gender stereotyping, remoteness of hydropower project sites and a lack of women in science; technology, engineering, and math education as key constraints for women's participation in this sector.
Concerns around initial investment costs and uncertainty over whether there will be a payoff in the short- to medium-term were also inhibiting factors, according to the study. Nepal ranks 105 out of 149 countries on the Global Gender Gap Index 2018 conducted by the World Economic Forum (WEF), indicating that there is still a critical need to focus on gender equality across various spheres.
KEY TAKEAWAYS:
At present from a study of 20 companies, only 10 per cent of total employees in Nepal’s hydropower sector are women, and very few of those employed are in leadership positions, included in corporate boards or occupy non-traditional roles in the industry;
• Various constraints continue to impede women’s entrance into this traditionally male-dominated sector – gender stereotyping, lack of gender-sensitive policies and practices, remoteness of hydropower project sites and a general lack of women in science, technology, engineering, and math education
• Adopting targeted and tailored interventions to advance gender diversity and equality have demonstrated net positive impacts in terms of business growth, efficiency and sustainability around the world
• At the corporate level, companies are recommended to: adopt policies to improve gender equality and equal treatment for all staff, create more career development opportunities targeted at women, build awareness on gender bias and set targets for diversity in board representation and leadership
• These corporate policies should also extend to the project level, where more gender specialists and female staff should be deployed to the field, more emphasis on collection of gender-aggregated data, and investment in opportunities for women to develop skills in non-traditional roles
• At the community level, companies should incorporate gender-responsive facilitation and techniques and gender equality tools, strengthen GBV-related reporting mechanisms, support women-led businesses and explore partnerships to train women in non-traditional roles
Friday, November 22, 2019
Call to raise investment in hydropower
The seventh edition of the Power Summit – organised by the Independent Power Producers’ Association-Nepal (IPPAN) with the theme of ‘Powering the Asian Century’ – witnessed call from the government to raise investment in the hydropower sector and commitment from domestic and foreign investors to unleash hydropower potential.
The participants – on the occasion – also asked the government facilitates investment through friendly policies.
Addressing the summit, finance minister Dr Yuba Raj Khatiwada said that it is the appropriate time for investors to invest in Nepal’s hydropower sector. Citing that development works in Nepal are being carried in line with the Sustainable Development Goals (SDGs), he also urged investors to invest in renewable energy and reap the benefits. “The government wholeheartedly welcomes investors in the hydropower and other sectors and assures that investors will be facilitated by all means.”
Amid rumours that Nepal does not have enough market for the surplus energy that the country will produce in the near future, Khatiwada said that the government will make sure that the generated power will not have any problem to find market. “The domestic consumption of energy will be increased through different means including electric vehicles that the government is promoting, and encouraging people to increase electricity consumption in household activities.”
“The government is also focusing on external market for surplus energy to export,” Khatiwada added.
Likewise, transport minister Basanta Kumar Nembang – addressing the closing ceremony – said that bilateral and multilateral coordination in the power sector in the South Asian region is crucial to assure necessary market for energy produced in Nepal. “Nepal aims to produce 10,000 megawatts of electricity in the future, and the government is seeking a regional market for power export through political and government-to-government dialogues,” he said.
During the closing ceremony, Indian government-owned NHPC Ltd and Hydroelectricity and Investment Company Ltd (HIDCL) of Nepal reached two different agreements on investing in the power sector, according to the IPPAN. Likewise, Indian Energy Ltd and IPPAN also shared a memorandum of understanding (MoU) to invest in the hydropower sector of Nepal. On the occasion, various other agreements were inked between power producers of Nepal and from India, Bangladesh and Bhutan.
Thursday, November 21, 2019
Quality of electricity access in Nepal shows remarkable progress
Despite progress on the coverage and quality of electricity access, about the same number of households – 70 out of 100 – continue to use firewood and other polluting and harmful fuels for cooking in Nepal, the survey reveals.
Providing access to high-quality energy services to each and every person in Nepal is one of the high priorities of the government, according to secretary at the Ministry of Energy, Water Resources and Irrigation Dinesh Kumar Ghimire. “We are working to achieve 100 per cent energy access by year 2023.”
About 67 per cent of households had uninterrupted access to electricity for at least eight hours a day, where supply is affordable, reliable and conducive for the use of household appliances like fans and televisions. Overall, about 71.7 per cent of households drew electricity from the national grid, while 23 per cent were connected to off-grid sources like micro or mini-hydro and solar power, the survey shows.
“Since this 2017 survey, Nepal has made further progress by increasing grid electrified population from 72 per cent to 78 per cent,” according to World Bank country manager for Nepal Faris H Hadad-Zervos. “The country has been load shedding free since 2018,” he said, adding that the World Bank celebrates these achievements made by Nepal and is very proud of being a partner with the government in further improving the quality of energy services for lighting and clean cooking and better the life of the people in Nepal.
The Nepal national household-level survey is part of the Global Survey on Energy Access, which relies on the Multi-Tier Framework (MTF) approach piloted by the World Bank with the support of the Energy Sector Management Assistance Program (ESMAP). This is the first time a survey has tracked the quality of electricity access across households in Nepal, compared to a more conventional, binary approach.
Despite progress on the quality of electricity access, clean cooking remains a challenge for Nepal. Firewood, which is polluting and causes a myriad of heath issues particularly for women and children, remains the most widely used source of cooking fuel. About 73.5 per cent of households said that they cook with firewood, animal waste, crop residue or plant biomass. “Less than 2 out of 10 households – about 17.5 per cent – have access to modern cooking services, according to the survey.
The survey suggests that for better quality of electricity access, households that access electricity through the grid, micro-hydro and mini-hydro sources must have electricity available for longer hours, particularly between 6:00-10:00pm, where supply is reliable with fewer, unexpected interruptions and voltage fluctuation issues. Households using solar devices and other low capacity sources of electricity will need to switch over to the grid or high-capacity off-grid solutions in the medium to long terms. For last mile connections, households with no electricity can be offered low-cost renewable electricity with flexible payment options as an interim solution.
The survey also suggests that for households to switch to clean fuels such as electric stoves or biogas in the long run, Nepal requires a multi-pronged approach. First, markets need to come together and target users through private sector involvement and strategies including results-based financing. In addition, Nepal must develop a decentralized testing and labelling regime for quality assurance and monitoring and also involve local governments by building local capacity and bringing them into the policy-making process.
The report was launched at the seventh edition of the Power Summit – organised by the Independent Power Producers Association of Nepal (IPPAN) – in Kathmandu today.
Utilisation of resources must to make electricity affordable
Addressing Power Summit 2019 in Kathmandu today, he said that resources available in the region must be utilised to optimise power systems and reduce electricity tariff due to the varying supply and demand pattern of the individual countries in the South Asian region. He also stressed the need to upgrade bilateral cooperation to sub-regional cooperation in the form of Bangladesh-Bhutan-India-Nepal (BBIN). “We shall now be working together to establish an inter-regional electricity grid interconnection,” he said, adding that energy development is crucial for Nepal’s economic development. “Nepal government is committed to attract foreign investment in the energy sector.”
Nepal will generate 5000 megawatt electricity once some of the ongoing hydropower projects are completed in couple of years. Meanwhile, Nepal's current electricity demand is only 1320 megawatt and the rest could be exported through the regional grid. Pun said that Nepal's major electricity markets are India and Bangladesh.
Around 70 experts including representatives from governmental and private sector, from India, China, Bangladesh, Bhutan and Nepal are making their presentations during the two-day event – organised by Independent Power Producers’ Association, Nepal (IPPAN) – with the theme ‘Powering the Asian Century’. The summit is also expected to create the basis for formal and informal dialogues for propelling Nepal toward becoming an eminent producer of energy for South Asian region.
Speaking on the occasion IPPAN president Shailendra Guragain said that the future that power producers are seeking is about abundant, reliable, clean and affordable power that is traded across boundaries to help boost the local economies and the quality of life of the people.
Likewise, addressing the Power Summit, minister of State for Power, Energy and Mineral Resources of Bangladesh Nasrul Hamid said that South Asia region was now looking for affordability after ensuring availability and reliability of energy.
He said that tariffs, terms and conditions of Power Purchase Agreement (PPA) with GMR has been finalised for the import of 500 MW power to Bangladesh from 900 MW Upper Karnali Hydropower project.
Similarly, chief executive officer of GMR Energy S N Barde, on the occasion, said that his company faced hurdles in terms of regulations and other issues regarding transmission while signing the first trilateral agreement. “But they were eventually resolved,” he added.
Hydroelectricity Investment and Development Company Ltd (HIDCL), Nepal and NHPC Ltd, India, and Indian Energy Exchange and IPPAN signed separate memorandums of understanding (MoU) for development of energy sector, on the sidelines of the summit.
The event – that will close tomorrow – will feature panel discussions on regional trade and connectivity, electricity markets, necessary regulations, financing, attracting investments and sustainable practices, according to IPPAN.
Wednesday, November 20, 2019
Power Summit to start tomorrow
Being organised by Independent Power Producers’ Association, Nepal (IPPAN), the two-day event with the theme of ‘Powering the Asian Century’ – will take stock of the present situation and look ahead to future possibilities of export and regional integration and connectivity of power, according to the organisers.
President of IPPAN Shailendra Guragain informed that more than eight agreements will be signed with different governments and private firms during the summit. “More than 750 participants – including from Bangladesh, Bhutan, China, India, Norway, South Korea, Canada, Netherlands, the United Kingdom, United States, and Japan – are expected to take part in the event,” he said, adding that this year the summit will focus on cross-border electricity trade, energy markets, regional electricity market regulation, financing, inclusive and sustainable development of power projects, governing and facilitating energy projects, attracting investments, and will also feature project showcase to highlight current activities in the sector within and outside the nation.
According to IPPAN, minister of Water Resources of India Gajendra Singh Shekhawat and minister of State for Power, Energy and Mineral Resources of Bangladesh Nasrul Hamid will be the key speakers at the summit.
There will be speakers from Nepal, India, Bangladesh, China and Norway, including chief investment officer from Netherlands Development Finance Company (FMO), director general of Asian Infrastructure Investment Bank, director of Indian Energy Exchange, Guragain said, adding that other noted speakers will be from Power Trade Corporation (PTC) India and Bangladesh Power Development Board.
Sunday, November 17, 2019
IPPAN plans agreements in Power Summit
According to the IPPAN, National Hydroelectric Power Corporation, India and Hydroelectricity Investment and Development Company Ltd, Nepal will ink a hydropower development agreement. Likewise, Nepal Power Exchange Ltd and Indian Power Exchange Ltd and Power Cell Bangladesh will also sign an agreement on the occasion.
“Women in Power Forum and International Finance Corporation (IFC), Nepal Bankers’ Association (NBA), IPPAN and Netherlands Development Finance Company (FMO), Investment Board Nepal and Power China will also sign a pact to construct Tamor Reservoir Project,” IPPAN press note reads, adding that the GMR Group of India and Bangladesh will also sign power trade agreement (PTA) of Upper Karnali Hydropower Project.
Some of the agreements are in negotiation phase and will be made public during the summit, according to president of IPPAN Shailendra Guragain, who thinks the summit is expected to create a platform for regional cooperation for power trade through various discussion sessions. The summit is also expected to explore new markets as well as expansion of power trade within and beyond the border.
According to the organiser IPPAN, experts from Nepal, China, India, Bangladesh, Bhutan, Japan, the Netherlands, United States, Canada, and Norway will participate during the two-day event. With the theme ‘Powering the Asian Century’, the summit – being organised under the patronage of Ministry of Energy, Water Resources and Irrigation – witnesses over 700 guests from various countries are expected to participate during the summit.
Guragain said that the experts are scheduled to deliver their deliberations on a number of topics including regional power trade, electricity market, regulation, and financing, sustainable development, execution and facilitation of the energy projects in the federal structure, foreign investment in hydropower and among others.
Wednesday, October 23, 2019
IPPAN to organise 7th Power Summit in November
The association – issuing a press note – said that the summit will focus on cross border electricity trading, energy markets, regional electricity market regulation, financing, inclusive and sustainable development of power projects, governing and facilitating energy projects, and attracting investments.
It will also feature project showcase to highlight current activities in the sector within and outside the nation, the press note reads, adding that the two-day summit is being organised under the patronage of Ministry of Energy, Water Resources and Irrigation with a tag-line 'Powering the Asian Century'. “Nepal Electricity Authority (NEA) is an associate partner for the event.”
Likewise, Nepal Planning Commission (NPC) and Hydroelectric Investment and Development Company (HIDCL) are also partnering with IPPAN for the event. “The summit will focus on taking stock of the present situation and to look ahead to future possibilities of export and regional integration,” the IPPAN press note reads. “The summit will witness brainstorming on cross-border electricity trading, energy markets, regional electricity market regulation, financing, inclusive and sustainable development of power projects, governing and facilitating energy projects, attracting investments.”
More than 750 participants from India, China, Bhutan, Norway, Korea, Canada, the Netherlands, the United Kingdom, the USA, and Japan are expected to take part in the event, which will be inaugurated by Prime Minister KP Sharma Oli.
Besides the technical session, the summit will also facilitate business-to-business (B2B) meeting allowing different parties to engage in business promotion.
The summit will be instrumental in developing appropriate and far reaching policies for the development of energy sector, president of IPPAN Shailendra Guragain claimed, adding that the summit with the theme of ‘Powering the Asian Century’, the association will be signing 18 agreements – including on power trade, environment and social best practices, and women in energy – with different government and private firms during the summit.
Saying that neighbouring countries are important to regional energy connectivity and export, Guragain said that the summit is being organised in association with the Embassy of India in Kathmandu and Embassy of Bangladesh in Kathmandu. Likewise, minister of Water Resources of India Gajendra Singh Shekhawat, and minister of State for Power, Energy and Mineral Resources of Bangladesh Nasrul Hamid will be participating in the summit.
Wednesday, October 2, 2019
Independent power producers to hand over keys of their project
Organising a press conference in Kathmandu today, the private power producers also warned that they will hand over keys of all sick hydropower projects to the government, if their demands are not met even after the second-stage of their protest. “We will hand over the key of sick projects to the Minister for Energy, Water Resources and Irrigation on October 18, if our demands are not fulfilled by then,” the IPPAN said, adding that some 25 hydropower projects developed by them are ‘sick’ as they have either failed to service their debts or reeling under financial crisis.
“The demands that we have put forth to the government are for implementation of facilities and pledges that the government and the Nepal Electricity Authority have made,” the coordinator of the sick project coordination committee of IPPAN Surya Prasad Adhikari said, adding that they have not got even those facilities and incentives that the government has provided to the foreign investors.
Independent power producers have launched their agitation in mid-August. In the first stage, they put forth their demands with concerned government agencies and held interaction with authorities to press them for fulfilling their demands. Some of their demands include immediate reimbursement of the subsidy announced for hydropower projects, which have already started commercial production as announced in the budget speech for fiscal year 2014-15, lowering of bank lending rates for hydropower projects to single-digit and 5 per cent for mini hydropower projects, which are in operation, and providing posted rate (Rs 4.8 per unit in wet season and Rs 8.4 per unit in dry season) even for small hydropower projects having capacity below 25 MW.
The IPPAN has also demanded increment in compensation resulting from outage losses due to fault of transmission lines of the Nepal Electricity Authority (NEA). “The NEA provides us a maximum of 5 per cent of outage losses in line with the power purchase agreement,” the IPPAN informed, adding that many small hydropower projects, however, are facing 17 per cent to 21 per cent outage losses out of total generation due to problem in transmission lines of the NEA.
“There cannot be construction of projects until there is transmission line,” according to the executive director of Aarati Power Company Ltd – the developer of Upper Irkhuwa Hydropower Project (14.5MW) – Prakash Dulal. “But, the NEA penalises power producers, if they do not supply energy in line with the agreement.”
Likewise, chief executive of Khanikhola Hydropower Company Bijay Man Sherchan said that power producers are facing losses due to lack of transmission lines. “We are supplying electricity from 11 kV transmission lines as the NEA has not provided 33 kV transmission line,” he said, adding that they have to pay compensation to the NEA, if they fail to supply required amount of energy.
Thursday, September 12, 2019
Nepal needs to increase investments in energy by fourfold: World Bank
“A twofold to fourfold increase in public and private investment is needed to meet the projected demand in the country and utilise the sector’s export potential,” the report reads, adding that electricity sector investments will need to accelerate substantially to an average of $1.3 billion to $2.1 billion annually between 2018 and 2040.
The report, which suggests policy-level reforms to strengthen the institutional capacity of power sector institutions with the view of attracting large-scale investment in the energy sector, has come at a time when Nepal’s foreign direct investment (FDI) level has fallen by 25.4 per cent year-on-year.
According to the central bank, the amount of direct investment in Nepal declined to Rs 13.06 billion in the fiscal year 2018-19 from Rs 17.52 billion in a fiscal year ago 2017-18.
The Nepal Electricity Authority (NEA) estimates that the country will have a surplus of around 8,000 megawatts (MW) by 2025 as its generation capacity is expected to reach 10,924 MW, while peak demand is likely to reach 2,981 MW.
Infrastructure experts say the generation and export targets will not be achieved unless the government focuses on implementing policies to facilitate investments in the sector at the earliest. “The problem is not with the laws, policies and work procedures governing foreign or private investment in the sector, the problem is with the hassle-laden processes that have dissuaded potential investors,” said a former secretary at the Ministry of Energy, Water Resources and Irrigation Anup Kumar Upadhyay.
According to Upadhyay, Nepal should facilitate domestic and foreign investment in export-oriented projects by stringently monitoring systemic delays by authorities and eliminating social and financial hurdles faced by investors such as local obstructions, risk hedging and profit repatriation.
“It will be important to create an enabling environment for foreign investment and financing to flow into the sector in a sustainable way while managing fiscal commitments and contingent liabilities risk,” reads the report issued by the multilateral institution, which has financed the construction of high capacity transmission lines and hydel schemes.
According to the World Bank, Nepal needs infrastructure investments of around 10 to 15 per cent of the gross domestic product (GDP) annually for the next 10 years, and the success of these investments will depend on the timely implementation of investment-related legislation that meets good practices.
The report has come at a time when the Finance and Energy ministries are divided over contributions from the ministries and the state-owned power utility to the hedge fund, a financial instrument used as a cushion against currency fluctuations faced by investors who bring investments both in debt and equity in foreign denominations.
Negotiations between the Energy Ministry and a consortium of Chinese and Nepali developers of the 600 megawatt (MW) Upper Marshyangdi project including Butwal Power Company (BPC) have stalled after the ministries locked horns over the terms of the hedging mechanism.
Earlier, the Korean developers of the 216-MW Upper Trishuli 1 Hydroelectric Scheme had also faced bureaucratic impediments owing to hedge fund contributions, which were sorted out following months-long discussions.
According to independent power producers (IPPs), there is a funding gap in energy projects, and foreign investors have expressed interest in channelling investments in the sector but the country lacks a proper risk-sharing mechanism between investors and the government. “Judging by the foreign direct investment (FDI) commitments, we can say investors are interested but the government’s inability to share business risk and assure investors a high level of socio-economic support has deterred the possibilities,” according to vice-president of the Independent Power Producers’ Association of Nepal (IPPAN) Kumar Pandey.
Investment Board Nepal (IBN) data revealed that Nepal received investment pledges of Rs 36 billion from China and Rs 10 billion from India in 2018. But a large portion of those pledges is yet to materialise in the form of direct investment.
The report has urged stakeholders to strengthen the enabling conditions for electricity trade with its neighbours by establishing the appropriate legal, regulatory and institutional environment for energy export.
The report coincides with the attempts of policy makers to end the deadlock in negotiations over financing and implementation modalities of the second cross-border transmission line between Nepal and India, and urge their Indian counterparts to establish government policies related to energy banking in India which will allow its power sector regulator to formalise energy exchange between the two countries, which is currently done through mutual agreement.
Tuesday, October 16, 2018
Energy Minister urges Chinese entrepreneurs to invest in Nepal
Addressing an interaction on 'Nepal-China Economic Co-operation Forum: Prospects of Investment in Nepal’s Energy Sector’ – organised by Beijing-based Nepal Embassy in collaboration with China Association for International Economic Co-operation – in Beijing today, he also outlined the government's plan to develop 15000 MW of electricity in 10 years.
Shedding light on the significance of energy as a priority sector with a direct bearing on socio-economic transformation of Nepal, Pun – who is on a visit to China – underscored the key role of foreign investments in achieving the target. He also invited the Chinese enterprieneurs to utilize the opportunities for investment in Nepal’s hydropower for win-win outcomes for both countries.
On the occasion, Nepali ambassador to China Leela Mani Paudyal, said that the forum was organised with a view to facilitating dialogue between Nepali policymakers and Chinese energy companies, and for exchanging ideas and experience on further accelerating Chinese investment in the generation of hydropower in Nepal, according to a press statement issued by Nepal Embassy in China.
He also assured the full support and co-operation of the Embassy of Nepal in facilitating such investments, the statement reads. "Briefing on the investment opportunities for Chinese investors in Nepal’s hydropower sector, joint secretary at the Energy Ministry Dinesh Kumar Ghimire outlined the policies, tools, processes and facilities relating to the investment regime in the hydropower sector."
Nepal Electricity Authority (NEA) managing director Kulman Ghising, on the occasion, also highlighted the potentials of investing in Nepal’s hydropower from a regional market perspective.
"It is a most appropriate time to invest in Nepal due to the huge volume of regional and domestic demand in electricity, the robust nature of energy connectivity infrastructures in the region, seasonal complementarities for demand and supply, and the credibility of NEA as an off-taker," the statement reads quoting him.
Welcoming the Nepali delegates, vice-president of China Association for International Economic Co-operation Guo Yongle said that the interactions would promote business co-operation between the two countries and create new opportunities in further advancing Nepal-China economic co-operation.
More than hundred participants including representatives of public and private sector companies of Nepal and China, senior office-bearers of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Non-Resident Nepali Association (NRNA), Independent Power Producers Association of Nepal (IPPAN), representatives of Asian Infrastructure Investment Bank (AIIB), and media persons also took part in the programme, according to the Nepali Embassy in Beijing.
The event also witnessed presentations on Nepal’s investment climate and the prospects of hydro-electricity development in the country.
Sunday, December 31, 2017
Sebon asks hydel firms to issue IPO only after declaring financial details
Securities Board of Nepal (Sebon) directive comes at a time when the hydropower companies are preparing to issue their public offerings. "Some 16 hydropower companies are planning to issue IPOs," according ot the regulator. "The trend of even the hydropower companies which are not financially sound issuing their IPOs has increased by keeping the people in the dark."
The regulator has also instructed – also to make the IPO issuance process systematised, transparent and simple – the companies to give information regarding the duration the investments made in the projects will start giving returns and the bases. It has asked the hydropower companies to provide clear information regarding the per megawatt (MW) cost, the remaining term of the power production license and the period the investment would be refunded, according to Sebon director Niraj Giri. "They also have to disclose information on net assets per share and the per share income as per their audited financial statement," he said, adding that the companies which are into operation for three years have to give the complete details for all the previous years, whereas the companies not completing three years operation also have to provide details of the period they have been into operation. "Te hydropower companies also have to give clear information about their audit reports."
The hydropower companies have to issue 10 per cent shares to the project affected locals and 15 per cent shares to the general public as it is mandatory.
The Independent Power Producers' Association of Nepal (IPPAN) has welcomed the regulator's move.
The banks and financial institutions (BFIs) dominated share market has currently 17 hydropower companies that are registered with the Nepal Stock Exchange (Nepse). But only a few of them are in profit, according to the first quarterly report.
Sunday, July 16, 2017
Hydropower producers appreciated for their contribution
On the 24th anniversary of the establishment of Department of Electricity Development (DoED), the government and Independent Power Producers' Association Nepal (IPPAN) today jointly conferred certificates of appreciation to the independent power producers that operate 58 power plants and Nepal Electricity Authority (NEA) that operates 14 plants.
"All the power plants are now connected to the national grid," said director general of the department Nabin Raj Singh. He also briefed about the fast track licensing services. "The department is now focusing on the study of mega hydropower projects and enhanced supervision and monitoring of the works," Singh added.
The department was formed after the government opened hydropower generation to the private sector that has now an installed capacity almost equal to the government-owned power utility NEA.
"This is the first time the hydropower producers were collectively appreciated for their contribution," according to an architect of the domestically-financed Chilime Hydropower Project Dambar Nepali.
“It's a matter of pride for us to see so many developers from the private sector engaged in hydropower generation in the country,” he added. Nepali is planning to finance and start a large-scale power plant soon.
Promoter of Sanima Hydropower Subarna Das Shrestha, on the occasion, expressed happiness for recognition and pledged to make additional efforts to generate hydropower.
Sanima Hydropower's three plants, with installed capacity of 31.6 megawatts, are in operation currently.
Likewise, president of IPPAN Shailendra Guragain said that the private sector was now engaged in construction of power plants with 3,500 megawatts of installed capacity, with a total commitment of Rs 700 billion. "Construction of these plants will require digging 300-km-long tunnels and constructing 1000-km-long transmission lines,” he added.
Former director general of the department Kishor Babu Aryal, on the occasion, remembered resistance from different quarters to the department's efforts in its early days to help promote private sector. "The establishment of power plants by the private sector itself has proved the success of the department,” he added.
A member of National Planning Commission (NPC) Arbinda Kumar Mishra said that the plan for power generation should be based not in terms of megawatts, but in terms of demand and seasonal variation.
Wednesday, March 15, 2017
NEA plans six cross-border interconnection corridors
Speaking at an interaction on Transmission Network System of Nepal organised by Energy Development Council (EDC) in Kathmandu today, managing director of NEA Kul Man Ghising said that the power utility has identified and planned six cross-border
Interconnection corridors and 11 transmission lines with a proposed 22,000 MW generation within 2035, as part of its strategy to optimise the energy grid.
Saying that a robust transmission and distribution system is the need of the hour for reliable power supply he informed that NEA was also going to study the requirements and feasibility of major transmission projects such as East-West transmission highway of 400 kV and 765 kV, Mid-hill transmission corridors of 400 and 220 kV, and North-South corridors of 220 and 400 kV.
He, on the occasion, also highlighted the current structure of transmission network in Nepal.
The discussion that featured talks from various stakeholders in the energy sector of Nepal saw officials from NEA and Independent Power Producers (IPPs) brainstorm on an outline on the current power scenario of Nepal.
On the occasion, IPPs also lamented discrimination by NEA while evacuating power. They said that compensation rate is different for different hydropower projects – from 45 per cent to 90 per cent. “Therefore, NEA has to be transparent and equal to power producer companies,” they said, adding that there was a special provision for transmission line for foreign producers but not to domestic producers.
The IPPs also stressed the need for a stable policy and more coherent approach from NEA. Giving an example where the construction of double-circuit instead of single-circuit could have evacuated more energy, they further said that IPP are ready to adopt Build-Own-Operate-Transfer (BOOT) model or even take the responsibility in land acquisition and procurement if allows. “IPPs are ready to adopt any favorable modality and are open to help the NEA to build transmission line,” they said, asking the government power utility to end the discrimination on transmission line construction. "There is a special provision for transmission line for foreign producers but not for national producers and that needs to end," they added
On the occasion, managing director of Liberty Energy Atma Ram Ghimire stressed the need for a stable policy and more coherent approach from NEA. Giving an example, where construction of double circuit instead of a single circuit transmission line could evacuate more energy and avoid duplication, he said that NEA has to synchronise the effort and have better coordination.
NEA has given top priority to install double circuit high capacity transmission network to enhance the quality of power supply.
Saturday, February 25, 2017
IPPs to receive 5 million
The then government through the fiscal budget of 2014-15 had announced to extend incentive worth Rs 5 million per megawatt (MW) to the developers of generation projects that start commercial operation by 2022-23. However, due to the delay by the Finance Ministry in providing its consent to the Energy Ministry to implement this decision, the announcement had been stalled for long.
The Independent Power Producers (IPPs) had long been lobbying with the government for the prompt execution of the facility following the announcement made by the budget.
The Finance Ministry had delayed in bringing this provision into force for quite some time as the country’s economy was shattered by the earthquake and the months-long border blockade, which had affected revenue generation, according to Energy Ministry.
"The finance ministry has finally agreed to implement the incentive scheme that was announced for the private sector developers," it said, adding that Finance Ministry agreed to implement this provision looking at the momentum in power generation in the last one yea.
The private sector developers contributed 105 megawatts of electricity to the national grid in 2016.
The Energy Ministry has also included provision of incentive in the ‘Energy Crisis Prevention and Electricity Development Decade’ – a vision document of the government to harness 10,000 megawatts of electricity in 10 years – and sought consent from Finance Ministry to execute incentive package announced by the fiscal act.
“Though, it took quite a long time to obtain the consent of the Finance Ministry, we will soon execute this package through a guideline that needs to be approved by the Cabinet," joint spokesperson for Energy Ministry Gokarna Raj Pantha said.
"After the guideline is endorsed from Parliament developers can submit their applications with the evidence of project completion within the aforementioned period to avail the facility," he said, adding that the ‘Energy Crisis Prevention and Electricity Development Decade’ launched last year has also mentioned about extending the incentive for 10 years, which means it would have been in effect till fiscal 2024-25. "But the Finance Ministry has clearly said that the facility will be extended to projects that are completed in between 2014-15 and 2022-23."
The IPPAN – umbrella association of the private sector hydropower developers in the country – has said that if the government had not delayed in implementing this announcement it would have been a lot better. "Though late, it will help motivative the private sector developers," president of IPPAN Shailendra Guragain said.
"As a large quantum of electricity from the independent power producers is going to be added within a few years, the project developers will benefit from this facility,” he said, adding that the power developers had sought exemption on value added tax (VAT) for the hydroelectricity projects to encourage developers so that the energy crisis could be addressed, but the fiscal budget 2014-15 addressed our demand in a different way.
As the government has announced the incentive, it will more or less be equivalent to exemption of the VAT amount.
Wednesday, February 15, 2017
Experts suggest relook in water, energy policy
Addressing a workshop jointly organised by South Asia Watch on Trade, Economics and Environment (SAWTEE) and Institute for Social and Environmental Transition (ISET)-Nepal, ‘Rethinking water and energy cooperation’, here in Kathmandu today, they suggested for a review of existing cooperation modalities to share benefit for improved and quality lives of people of regional or sub-regional level through effective utilisation of water. Discussing on political, economic and ecological dimensions of water cooperation in South Asia region, they also stressed on need to review Nepal’s water and energy policies.
Presenting a thematic paper, executive director at ISET-Nepal Ajaya Dixit said that the impact of climate change is already visible in Nepal’s water resources. Citing International Centre for Integrated Mountain Development (ICIMOD), he said that between 1977 and 2010, Nepal’s icecaps have receded by 29 per cent.
Likewise, water reserve in springs in mid-hills has depleted, and at the same time, rivers have deteriorated into sewerage channels. Water-related disasters of recent times – such as western Nepal’s 2014 flood caused by three days of torrential rains and the 2008 Koshi flood – show the erratic nature of the rivers.
Dixit stressed that our focus on river conservation has mostly centred on the Himalayan rivers. But bilateral and multilateral platforms need to consider water-sharing and management issues of rivers originating from the Mahabharata and Chure as well.
Commenting on Dixit’s presentation, former deputy-managing director of Nepal Electricity Authority (NEA) and chief executive of Kabeli Energy Sher Singh Bhat pointed out that the major problem in Nepal’s hydrological management is lack of intra-sector and inter-sector coordination. As an example, he pointed out that licensing authorities grant clearances for projects without considering effects of upper stream projects on lower stream and vice versa and also how some hydropower projects could possibly adversely impact irrigation.
Vice president of Independent Power Producers’ Association (IPPAN) Kumar Pandey, on the occasion, opined that government sorely lacks policies for effective utilisation of water resources while developing multipurpose projects; hydropower, irrigation benefits, tourism activities (rafting).
Likewise, chairman of SAWTEE Posh Raj Pandey said Nepal’s inability to properly manage its water resources and energy potential has left it not only in power deficit situation but with a large trade deficit too. Nepal’s increased dependency on India would translate to soaring payments deficit in this fiscal due to increased power purchase, he added.
Pandey also urged the government to insert electricity import cost in trade deficit figures.
The current trade deficit figures published by Nepal Rastra Bank exclude the electricity import cost. Nepal's electricity import increased by 28.36 per cent to 1,758.41 GWh in the last fiscal year compared to the previous fiscal year.
Though the sixth periodic plan had introduced the idea of exporting electricity back in the 1980s, the possibility of beginning power export in the near future appears slim. Rather, power import is increasing at an alarming rate in recent years.
The participants, on the occasion, said that the idea itself is flawed as importing energy from Nepal was neither a priority for India in 1980s, nor now.
“Almost all the policies of the past five decades in water and energy cooperation have failed and they should be revisited,” according to a senior journalist and an advisor to former President Ram Baran Yadav Rajendra Dahal. "We have not seen any indication that India will buy Nepal's energy. The southern neighbour is only eying on water resources."
Dahal's view goes against country's policy documents which envisage narrowing down the bulging trade deficit with India by exporting electricity. Indian leaders and diplomats often claim that Nepal can narrow down the widening trade deficit by exporting energy to the southern neighbour.
When talks of building Arun III project was doing rounds in the 1980s, those who were in favour of building the plant had argued that export of even half of the energy generated by Arun III could put the country in a trade surplus situation, Dahal said, adding that Nepal has managed to end load-shedding at present by increasing energy imports from India. "Thus, our focus should be on becoming self-sufficient in electricity."
Stating that the country was facing resource crunch to develop big hydropower projects, Dahal also said that the country needs to attract foreign investments in hydropower sector.
The participants, on the occasion, also suggested strengthening institutional capacity of organisations like NEA to streamline hydropower generation and distribution.
They also lamented that water discourse in Nepal has always been limited to energy generation and as a result other potential usage of rivers such as for navigation, fisheries and even for keeping ecological balance have been ignored.