Kathmandu— The government of Nepal is moving forward with plans to launch new Power Purchase Agreements (PPAs), essential contracts for electricity generation projects, in an effort to bolster the nation’s energy sector. A meeting of the Board of Directors at the Nepal Electricity Authority (NEA) on Thursday initiated the process and established a sub-committee tasked with developing necessary standards for issuing these agreements.

NEA Board Meeting Initiates Process

The decision to advance the PPA process was made during a meeting of the NEA’s Board of Directors, which was chaired by Biraj Bhakta Shrestha, Minister for Energy, Water Resources and Irrigation. The board approved the formation of a sub-committee specifically dedicated to establishing the standards required for issuing new PPAs.

Sub-Committee Formation and Mandate

The newly formed sub-committee will be led by NEA Board Member Anshu Kiran Shahi and is responsible for formulating the criteria needed for the issuance of new Power Purchase Agreements. The committee also includes Shaligram Bhandari, Deputy Director General of the Department of Electricity Development, and Riwaj Sharma, an expert from the Ministry of Energy. The Director of the Business Section will serve as Member Secretary.

Timeline for Standard Development

The sub-committee has been given a one-week deadline to finalize its findings and present them to the NEA Board of Directors. This expedited timeline suggests a sense of urgency in moving forward with new energy projects and securing future electricity supplies.

The sub-committee is expected to submit its recommendations within the next week, paving the way for the potential issuance of new Power Purchase Agreements.

(With inputs from RN)

Originally published on abcnews.com.np.