KATHMANDU, Dec 16: Power Summit 2016 concluded in Kathmandu on Friday with a commitment to generate 10,000 MW of hydropower in the next ten years.
Both the government officials and independent power producers made the commitment to genera 10,000 MW in the next decade by implementing 99-point work plan listed in the National Energy Crisis Prevention and Electricity Development Plan 2016.
Speaking at the program on Friday, Dinesh Kumar Ghimire, joint secretary of the Ministry of Energy, said that 10,000 MW could be generated by 2026 by implementing the plant.
The government has also ensured market for independent power producers by making commitment to replace the 'take and pay' provision in power purchase agreement (PPA) by 'take or pay'.
IPPs have long been demanding the government to insert 'take or pay' provision in the PPA arguing that the existing 'take and pay' provision makes several projects unbankable.
Ghimire also said that the government was open to revisit the 30 percent limit in energy mix for run of river projects, paving the way for more projects to sign PPA.
The summit, fifth the series that began in 2006, was focused on achieving the target of generating 10,000 MW in the next 10 years. It featured discussion sessions on financing the projects, developing projects sustainably, and counting projects to achieve 10,000 MW target, among others.
Speaking at the program, Khadga Bahadur Bisht, the president of IPPAN - the organizer of the event, demanded that the government provide all the facilities announced in different times to hydropower developers“ "The government should immediately insert 'take or pay' provision in PPA and expedite project development agreements of projects with foreign direct investment”," he added.
Speaking on Thursday, ambassadors of India, USA, UK and Australia to Nepal had said that the target of generating 10,000 MW by 2026 is gettable. They also said power sector reforms, government incentives to make hydropower projects profitable, and establishment of regulatory agency, among others, are the key to achieving the target.
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