Stakeholders have called for policy reforms and facilitation measures to accelerate energy development in Nepal. The made this call during the 23rd Annual General Meeting of as the Independent Power Producers' Association of Nepal (IPPAN) in Kathmandu on Tuesday.

Addressing the event, Member of Parliament Janardan Sharma emphasized that energy is the foundation of economic development and warned against delays in issuing Initial Public Offerings (IPOs) for hydropower projects.

“Unnecessary registration of hydropower projects must be stopped,” Sharma said. “There is a growing trend of acquiring river licenses without the intention to operate projects. As a result, capable investors are being deprived of access. Only those with production capacity should be granted licenses.”

IPPAN President Ganesh Karki highlighted the significant investment and contributions of the private sector in the hydropower industry, stressing the need for further facilitation in the coming years. He noted that private investment in hydropower has already exceeded Rs 1.3 trillion and projected that an additional Rs 3 trillion would be required over the next decade to meet the government’s ambitious goal of producing 28,500 MW of electricity .

Karki expressed doubts over the government's Energy Development Roadmap 2081 and called for the declaration of a "state of emergency" in the energy sector, supported by special legal provisions such as a "sunset law" to fast-track development. He also urged policy changes, citing that legal obstacles related to the Forest Act, Environmental Act, and national park regulations have hindered projects totaling 40,000 megawatts in capacity.

The event also raised serious concerns over several ongoing challenges, including the halted IPO issuance process, irregular taxes imposed by local governments, disruption in transmission lines, bans on project construction within protected areas, and lack of compensation for projects damaged by floods.

IPPAN further urged the government to permit private sector involvement in electricity trade, distribution, and hydrogen production. It also called for the Energy Act 2080 to be made more investment-friendly and recommended the establishment of large-scale industries to boost domestic power consumption. -- RSS