Kathmandu, March 29: The Independent Power Producers’ Association (IPPAN) has welcomed the government’s action plan relating to energy development.
In its press statement on Sunday, IPPAN expressed belief that the action plan would spur energy development, causing positive results. IPPAN Chairman Ganesh Karki claimed the 100-point reform plan unveiled by the government had presented energy sector as a basis of economic transformation, so it was a welcome initiative. “The private sector investors have been excited to see such plan floated by the government of near two-thirds majority,” Karki added.
The government led by Prime Minister Balendra Shah has aimed at producing 30,000 MW electricity in 10 years.
Karki observed, “IPPAN has taken very positively the government’s plan to open power purchase agreement (PPAs), pending for a long time, within 180 days maximum. With this, those applied for PPA would be heard soon and projects intensified.”
Currently, there are over 570 private power companies affiliated to IPPAN. The power production capacity of the country has exceeded 4,000 MW, among which, private sector accounts over 350MW, according to Karki.
The investors are waiting for the launch of PPAs of 13,000MW. The private sectors are undertaking the projects that have the capacity to produce some 5,700 MW.
So far, the private entities have invested nearly Rs 1310 billion in energy sector. It is planning to pour in money- nearly Rs 3,000 billion- in coming 10 years.
IPPAN has further expressed readiness to collaborate with government for the sustainable development of energy sector. It also suggested the Energy Ministry that it reciprocated with IPPAN for effective enforcement of the reform plan.
