Nepal Electricity Authority (NEA) Executive Director Kulman Ghising has emphasized that the development of the hydropower sector is possible through public investment.
Speaking at a program organized by the Nepal Economic Journalists Association, he stated that while investing in IPOs carries risks, shares should be issued under proper regulations.
The NEA has signed power purchase agreements (PPAs) for projects with a combined capacity of 12,000 megawatts. However, despite 3,500 megawatts of hydropower projects currently in operation, electricity generation during winter is limited to just 1,100 megawatts. The state-owned power utility aims to facilitate PPAs for up to 28,500 megawatts of electricity supply.
“Currently, not all projects with signed PPAs have entered the construction phase,” Ghising said. “Is it appropriate to demand new PPAs when existing ones have yet to progress?”
He stressed the need to end the practice of securing PPAs without moving forward with construction. Regarding cross-border transmission infrastructure, he noted that the Nepal-India agreement guarantees India a share of the revenue once the transmission line becomes operational.
Ghising also highlighted NEA’s assets, valued at Rs 700 billion, and stated that the authority is preparing to issue primary shares to the public, with plans to offer 20 percent of its shares.
