प्रगति नदेखिएका जलविद्युत् आयोजनाको अनुमति पुनरावलोकन गरिनेGovernment to Review Stagnant Hydropower Projects, Says Energy Minister

Kathmandu — The government has announced plans to review and classify hydropower projects that have obtained licenses but have shown little progress for a long period, with necessary decisions to be taken based on their status.

Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha said the government would provide full support to genuine investors but would discourage the practice of holding project licenses without moving forward with development activities.

Speaking at a program organized to welcome the newly elected executive committee of the Independent Power Producers’ Association, Nepal (IPPAN), Minister Shrestha said merely obtaining a license and keeping projects inactive would not be acceptable.

He emphasized that challenges in the energy sector should be addressed through proper classification and prioritization rather than applying the same approach to all projects. The minister said the government plans to introduce necessary regulations and guidelines along with the new Electricity Act to reduce policy uncertainty.

Minister Shrestha also highlighted the need to increase private sector participation not only in electricity generation but also in power trading, consumption expansion, transmission and distribution systems.

He said Nepal needs a long-term national transmission line master plan to prevent duplication of investment and ensure more effective development of energy infrastructure.

Referring to the changing nature of energy production due to climate change, the minister said Nepal’s future energy strategy should be based on an energy mix approach. He also informed that the government is working to strengthen energy diplomacy, including plans to appoint an energy representative at the Nepali Embassy in India to support electricity export initiatives.

The minister expressed readiness to establish a high-level coordination mechanism with the private sector to address policy and implementation challenges in the energy sector. He stressed that energy development should be viewed as a driver of economic transformation and managed through stronger cooperation between the government and private investors.

During the program, IPPAN submitted a 38-point recommendation list to the Energy Ministry, highlighting issues such as private sector participation in electricity trading, involvement in transmission line development, investment-friendly electricity laws, improvements in power purchase agreements (PPAs), extension of project licenses, increased electricity consumption and promotion of green energy.

IPPAN President Mohan Dangol said that Nepal could achieve its target of generating 30,000 megawatts of electricity within the next 10 years through private sector investment if the government provides necessary policy support.

He pointed out that delays in signing PPAs, lack of transmission infrastructure, uncertainty over commercial operation date extensions and license cancellation policies have created concerns among investors.

The government’s latest move indicates a shift toward stricter management of hydropower licenses while attempting to create a more predictable environment for genuine energy developers. Balancing investment promotion with accountability of inactive projects remains a key challenge for Nepal’s energy sector.