Location: Babar Mahal Revisited, Kathmandu

Date: 7th February, 2016

On 7th February, 2016, Energy Development Council (EDC) and Water Resource and Energy Journalist Society Nepal (WAREJ) organized a discussion program on the topic “” The 3 Main Problems of Hydroelectricity Sector in Nepal” at Babar Mahal Revisited, Kathmandu.

In the panelist, present were Deputy Prime Minister and Energy Minister  Mr. Top Bahadur Rayamajhi, , Land Reform Minister Mr. Ram Kumar Subba,  Energy Secretary Suman Sharma ,  Joint Secretary Krishna Acharya of the Forest Ministry, MD of NEA Mr. Mukesh Kafle and Lawmaker and President of the parliamentary Agriculture and Water Resources Committee Mr. Gagan Thapa.

Mr. Bikash Thapa of WAREJ moderated the session. Mr. Sujit Acharya, Chairperson of EDC, Nepal’s umbrella organization for the entire energy sector gave presentation about the three key obstacles in Nepal’s hydropower development sector which were:

  1. Signing of Expensive US Dollar PPA for Foreigners which is going to be announced by Government of Nepal in upcoming Energy Crisis Mitigation Plan, BUT not signing cheaper PPA’s of Nepali Developers.
  2. Ministry of Forest requirements from Nepali Hydropower Developers to pay a fee as Payment for Environmental Services for its contribution to saving more trees from being cut. The Ministry also requires Hydropower Developers who rent its land for 30 years (duration of the hydropower license) to pay a rental fee AND ALSO PROVIDE IT EQUIVALENT AMOUNT OF LAND IT HAS RENTED FOR FREE!!!
  3. Ministry of Land Reform applies LAND CEILING RULE of 75 ROPANIS TO HYDROPOWER PROJECTS in same manner as to individual land owners/traders.


Mr. Rayamajhi said that it was necessary to sign PPAs in US dollar terms to attract foreign investment, particularly in storage-type projects. Expediting the construction of new hydropower projects and the reconstruction of plants damaged by the earthquake, developing at least one storage-type project and upgrading cross- border transmission lines will be major focus of the planned Energy Emergency.

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