Take or Pay PPA

NEA has recently changed the “Take and Pay PPA” to “Take or Pay PPA” All projects including those which have "Take and Pay PPA" are entitled for the amendment provided their Commercial Operation Date (COD) is before mid-July 2026 AD.

PPA IN DOLLAR Too Little Too Late

At a time when the government has announced an ambitious plan to generate 20,000 MW of electricity within a decade, there is the need of a huge foreign investment to fulfill the objective. To lure foreign investment, there is the need to sign the PPA in dollars.

Paradigm Shift

Nepal’s hydro is predominately RoR schemes and almost all pipeline hydropower projects are also RoR.

Foreign Investment Climate

All of a sudden Nepal has been bombarded by summits. In the past few months, different organizers have held several investment/infrastructure summits so hastily. The objective of those summits was to attract foreign investment in the country but the outcomes were not that satisfactory. However, ‘Investment Summit 2017’ organized by Investment Board, Nepal last week did draw world’s attention. Investors pledged a jaw-dropping FDI commitment of US $ 13.51 billion.

Govt plans to consider six months as dry season

Government plans to increase dry season period to six months from four months. This certainly is a good news for IPPs as the RoR projects will be entitled to get dry season rate (Rs. 8.40 per kWh) for six months (December to May). However, it comes with a clause which to me is useless and is not in the favor of project and the country as a whole.

Solar through my lens!

It might be considered as a sin to talk about solar energy in Nepal. The country, rich in hydro resources, is inclined to be blatantly loud and assertive in self-defense. It is not everyone's cup of tea due to its expensive LCOE (levelized cost of electricity). Name-calling is expected when you try to explore the solar opportunity in this country. 

Kulman Ghising: sheer luck or calculated risk?

All these years we thought that there is a huge mismatch between demand and supply of electricity. Load shedding for 12 to 16 hours a day during dry season was quite common and we were prepared for the same thing this year too.

Indian policy discourages non-Indian hydropower investors

KATHMANDU, Nov 8: India has brought cross border electricity trading policy to facilitate energy trading with neighboring countries. 

IPO of Arun Kabeli Power Limited

Arun Kabeli Power Limited is the next hydropower company that is going to be listed in Nepal Stock Exchange. Here is my sincere opinion regarding the Company, its project and speculated share price when listed in Nepal Stock Exchange.

Disappointing PLF

I have been closely following the energy generation trend of recently completed projects, and I must say it is pretty disappointing. Following are the projects with their design PLF and their actual (PLF) generation.

Panel endorses PPA in dollar terms

A sub-committee under the Parliamentary Public Accounts Committee has endorsed the government’s plan to sign Power Purchase Agreement (PPA) in US dollar terms with hydropower developers for a certain period, but raised question over some of such deals already signed.

IPO of Dibyashwari Hydropower Limited

Dibyashwari Hydropower Limited is the next hydropower company that is going to be listed in Nepal Stock Exchange. Here is my sincere opinion regarding the Company, its project and speculated share price when listed in Nepal Stock Exchange.

Confusion in 10 percent local shares.

"One hydropower project one company" This is what every hydropower company is doing. But, what if a company wants to develop multiple hydropower projects in various locations/districts without establishing separate companies?

Budget for FY 2073/74

The recently announced budget has heavily focused on infrastructure. A lot of promise has been made. Below is the gist.

IPO of Khani Khola Hydropower Company Limited

Khani Khola Hydropower Company Limited is the next hydropower company that is going to be listed in Nepal Stock Exchange. Here is my sincere opinion regarding the Company, its project and speculated share price when listed in Nepal Stock Exchange.

Hydro projects still await incentives announced in past budgets

IPPAN for effective implementation of subsidy, incentive programs

The budgets of past three fiscal years had announced cash incentives for hydropower projects in a bid to encourage developers to complete projects at the earliest. But the developers, who met all the criteria, have not received any such incentive so far.

The rise of nationalism

 Nationalism is one of the major ideological components of Nepali communist parties. They have evolved around by influencing commoners about how they defend the country's sovereignty and raise their voice against unequal treaties with other countries, particularly with India. Although few communist leaders are being accused of signing anti-national treaties with India by their own colleagues, they keep on bouncing back time and again with this ideology.
 

5 hydropower companies in pipeline to issue IPO

Initial Public Offerings of a string of public limited companies are in the pipeline.   There are five hydropower companies in pipeline to issue IPO.

Crowdfunding

The liquidity surplus situation with a very limited investment opportunity has made IPO a popular choice among investors.  Now it seems like it doesn’t matter what sector you throw in. Every IPO seems to be overwhelmingly oversubscribed.

Development partners vow to extend Rs 200 billion

The Asian Development Bank (ADB), along with other development partners, has promised to extend assistance of over Rs 200 billion for implementation of the action plan, ‘National Energy Crisis Prevention and Electricity Development Decade’, which was unveiled by the Ministry of Energy envisaging developing 10,000 megawatts of hydroelectricity within the next 10 years.