Energy sector attracts Rs54b in FDI pledges

With some landmark agreements over the last few years, energy has become the most lucrative sector in Nepal for foreign direct investment (FDI).

Lurking in the shadows of the earthquakes.

Several hydropower projects that were affected by the powerful April 25 earthquake are now repairing the damages. While the physical damages are getting rebuild slowly, hydro business is about to face some more obstacles.

Breakthrough or anit-national?

There are no export oriented projects in operation as of now. But the PDA with GMR (an Indian company developing 900 MW Upper Karnali project) is suddenly in the limelight. Some experts are claiming to be an anti-national deal while others calling a breakthrough.

Earthquake tremors felt in hydropower share price is slowing down.

The market, which opened on 24^th May, 2015 after remaining closed for almost a month after the April 25 earthquake continued to lose points for the first week. Of the nine trading groups, hydropower saw a massive decline as expected.

NEA did it again.

NEA has recently signed PPA with Nyadi Hydropower Limited, a subsidiary of Butwal Power Company (BPC). Nyadi Hydropower Limited is developing a 30 MW project in Lamjung district. According to the press release, NEA will buy energy at NPR 4.80 and NPR 8.40 per kWh during wet and dry season respectively. The developer is entitled to get three percent escalation for eight years.