Kathmandu. Chairman of independent power producers’ association (IPPAN) Ganesh Karki has objected to the government’s policy of entering into power purchase agreement (PPA) through ‘take and pay’ system to balance production and consumption.
Addressing a gathering of energy producers in Kathmandu against the provision of ‘Take and Pay’ PPA in the budget for the upcoming fiscal year, Chairman Karki objected. He also complained that the government’s ‘take-and-pay’ model was trying to divert private investors from hydropower.
Stating that the government has set a target of generating 4,800 MW electricity within the next fiscal year, he said that the private sector should also produce the electricity. Though the government has set a target of producing 28,500 MW of electricity in the next 10 years, the policy of power purchase agreements based only on the balance of production and consumption would discourage investors, he said.
Stating that a maximum of 3,000 MW of electricity would be consumed during the winter season, Karki said electricity has already been increased on the basis of the balance of generation and consumption.
“The budget has set a target of generating 4,800 MW of electricity in the next fiscal year. At present, 35-3600 MW has been generated. We will produce the rest of the produce. It’s not the government’s electricity. Our files are stuck in Sebon. Money doesn’t come from there. That is why I had said in the finance minister’s program that the target could not be met. There are many other goals. ‘
“And another target of our objection is that the government’s target of producing 28,500 MW of hydropower will be made to balance production and consumption. What does that mean? We have already done 10,000-11,000 MW OF PPAs. About 3,000 MW is consumed during winter. This means that there is more electricity now. Let us not be under the illusion that there is no solar PPAs anymore. Because if we look at the balance of production and consumption, we have more electricity,” he said.
He demanded immediate amendment of the provision of take-and-pay, which is anti-private sector and eliminates the private sector in the energy sector, to create an environment for ppa in the take-or-pay already being done by the Electricity Authority.
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