As the government intensifies oversight of hydropower projects that have signed Power Purchase Agreements (PPAs) but failed to enter the construction phase, the Nepal Electricity Authority (NEA) has requested updated progress reports from the concerned project developers.
Through a public notice, the NEA directed developers of hydropower and solar energy projects that have already completed PPAs and are categorized as under construction to submit detailed progress reports within seven working days. The authority also warned that failure to provide the required information within the specified deadline could result in action under the provisions outlined in the agreement.
The move comes as authorities grow increasingly concerned over a long-standing trend in Nepal’s energy sector where developers secure PPAs but delay or fail to move projects into actual construction. Officials argue that such delays limit opportunities for new energy projects and slow the expansion of electricity generation capacity.
In response, the government has adopted a stricter approach toward inactive projects. A study committee under the Ministry of Energy has already recommended canceling permits for dozens of projects that have shown little or no development progress despite obtaining approvals.
The policy direction has also been reinforced through the current fiscal year’s national budget, which states that projects that secure PPAs but do not begin construction may face permit cancellation.
Industry observers view the NEA’s demand for updated project details as an important step toward evaluating project performance and preparing the basis for possible regulatory action in Nepal’s energy sector.
The latest development signals stronger enforcement efforts aimed at improving accountability, accelerating project implementation, and ensuring that approved energy projects contribute to the country’s long-term electricity production goals.
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