ERC’s New Draft on Open Access — An Example with Cost Calculation

 

ERC has recently released a draft regarding open access. Experts have long demanded that the private sector be allowed to use the transmission line by paying certain fees. So, this draft is a positive step forward. In this article, I try to calculate how much an open access user has to pay if we export 10 MW. 

Peaking Power: Comparing RoR Hydro, Peaking Hydro, Solar, and Battery-Backed Solar in Nepal

Introduction

In recent timess, there has been significant buzz surrounding battery storage for solar power projects in Nepal. Some industry observers believe the recent introduction of the “take and pay” mechanism for Run-of-River (RoR) hydropower projects is part of a broader shift aimed at prioritizing solar power coupled with battery storage. This prompted me to analyze how battery-backed solar stacks up against traditional RoR hydro and peaking RoR projects in terms of energy supply during critical demand periods.

"Hydropower at Risk: Why Nepal Must Embrace Innovation and Abandon Take and Pay PPAs"

The recently announced budget has created a buzz, especially with the introduction of a "Take and Pay" Power Purchase Agreement (PPA) for run-of-river (RoR) hydropower projects. On one hand, the government has set an ambitious target of achieving 28,500 MW electricity production, but on the other, it has taken a contradictory step by formulating policies like the Take and Pay PPA. This system, where electricity is purchased only when consumed rather than through long-term contracts, has led to financial instability for power producers.

 

Misaligned Priorities: Why Nepal’s Hydropower Sector Needs a Regulatory Reset

 

Introduction

Nepal’s hydropower sector is at a critical juncture. While the government claims to prioritize storage-based hydropower projects, real progress is lacking. The recently announced budget emphasizes the importance of storage, but practical and policy-level gaps continue to undermine that objective.

Without decisive changes in regulation, planning, and pricing, Nepal risks wasting its hydropower potential — especially the opportunity to address dry-season energy shortages.

Analyzing Pure Energy Limited’s IPO Approval: A Deep Dive into Financial Viability and SEBON’s Decision

In a surprising move, Pure Energy Limited, a solar project with a total installed capacity of 20 MW, has recently received IPO approval from the Securities Board of Nepal (SEBON). This decision comes at a time when SEBON has been hesitant to approve IPOs for numerous hydropower projects in the pipeline. This raises an important question: On what grounds did Pure Energy Limited secure IPO approval, especially when SEBON has been cautious about protecting general investors from potential profitability risks?

 

Price Discrimination in Nepal’s Energy Sector: Challenges and Opportunities

 

The Government of Nepal has set an ambitious target to generate 28,500 MW of electricity by 2035, aiming to boost both domestic consumption and export capacity. This strategic initiative reflects Nepal's commitment to harnessing its hydropower potential, promoting sustainable energy development, and fostering economic growth through regional energy cooperation.

Key Aspects of the 2035 Energy Target

• Domestic Consumption: Approximately 13,000 MW is intended for domestic use, aiming to meet the growing energy needs of the country.
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• Export Capacity: Around 15,000 MW is planned for export, primarily to neighboring countries like India, to enhance foreign currency earnings and support regional energy integration.
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To achieve this target, the Department of Electricity Development (DOED) has already issued licenses for 30,000 MW of hydropower projects and 704 MW of solar projects. However, the current reliance on Run-of-River (RoR) hydropower projects raises significant challenges.