IPPAN President Urges Government to Issue Sunset Law via Ordinance to Boost Energy Sector

Ganesh Karki, president of the Independent Power Producers' Association, Nepal (IPPAN), has urged the government to immediately introduce the "Sunset Law" through an ordinance. Speaking at IPPAN's 24th annual general meeting on Friday, Karki explained that passing a law through the regular parliamentary bill process takes at least a year, issuing an ordinance is necessary to fast track the development.

Karki noted that while past governments included promises in their manifestos without implementing them, the current government's recent action plan and budget show a real commitment to addressing these issues. He expressed optimism that the current Energy Minister, Viraj Bhakta Shrestha, will fulfill his commitments and execute his 100-point action plan. Karki added that just as Shailaja Acharya is remembered for opening up the energy sector, Minister Shrestha will be remembered for allowing the private sector to trade electricity.

Highlighting the current challenges, Karki mentioned that projects totaling around 16,000 megawatts are currently in the pipeline waiting for Power Purchase Agreements (PPAs), and he remains hopeful that these agreements will be concluded within 180 days. He also pointed out that despite securing PPAs back in 2020, many projects have been stalled because the forestry department has not granted permission to clear trees. Due to these uncontrollable circumstances, nearly 100 projects have been unable to generate electricity, prompting Karki to request a formal deadline extension for these developers.