IPPAN Protests: Opposition to the Government's "Take and Pay PPA" Arrangement with Black Banner Display

The Independent Power Producers' Association (IPPAN) has protested the government's decision to implement a "Take and Pay" Power Purchase Agreement (PPA) for Run-of-the-River (ROR) hydropower projects by displaying black banners in Kathmandu.

During a press conference held on Thursday, IPPAN representatives expressed their strong disapproval of the government's decision, arguing that it would have a detrimental impact on the energy sector. The government’s budget for the fiscal year 2082 has proposed that only ROR hydropower projects can enter into PPAs under the "Take and Pay" arrangement.

IPPAN President Ganesh Karki emphasized, "This arrangement will discourage banks and financial institutions from investing in hydropower projects, putting nearly 17,117 megawatts of proposed projects at significant risk." He further pointed out that the decision could lead to the loss of an investment worth NPR 66.22 billion.

In protest, IPPAN has warned that if the government does not revoke the "Take and Pay" PPA provision for ROR projects, they will resort to street protests. According to IPPAN, the decision could lead to the suspension of ongoing projects and create uncertainty in the energy sector’s future.

The association has committed to continuing its efforts to engage in positive dialogue with the government to find a solution to the issue.