Independent Power Producers Warn Government of Nearly NPR 200 Billion Investment Risk in Electricity Sector

The President of the Independent Power Producers’ Association Nepal (IPPAN), Ganesh Karki, has urged the government to address concerns surrounding nearly NPR 200 billion invested in Nepal’s electricity sector.

According to IPPAN, the significant amount of private sector investment in hydropower and related energy projects requires stable policy support and clear regulatory frameworks to ensure sustainability. The association has emphasized the importance of protecting long-term investments that contribute to national energy production and infrastructure development.

The IPPAN Investment Risk Nepal discussion highlights the broader challenges faced by independent power producers in managing large-scale projects. These projects typically involve substantial financial commitments, extended construction timelines, and coordination with multiple regulatory authorities.

Ganesh Karki noted that consistent policies and timely administrative processes are essential to safeguard investor confidence. He pointed out that hydropower development plays a vital role in strengthening Nepal’s energy self-sufficiency and supporting economic growth.

Independent Power Producers Nepal have contributed significantly to increasing electricity generation capacity over the past decade. Private sector participation has helped expand access to power in both urban and rural areas, while also creating employment opportunities during construction and operation phases.

Industry representatives have stated that ensuring smooth power purchase agreements, transmission infrastructure development, and predictable regulatory decisions is important for the long-term health of the Electricity Sector Investment Concern. Clear communication between the government and private stakeholders is viewed as a key step toward resolving existing uncertainties.

Energy experts have also observed that hydropower remains one of Nepal’s major economic strengths due to the country’s abundant water resources. Sustained investment and policy clarity could further enhance the sector’s contribution to domestic energy supply and potential cross-border electricity trade.

IPPAN has called for constructive dialogue with relevant government bodies to address policy matters and ensure that investments remain secure. The association expressed confidence that collaborative efforts can create a stable environment that benefits both investors and the national economy.

The electricity sector continues to be a central component of Nepal’s development strategy. As discussions move forward, stakeholders are expected to focus on maintaining investor confidence, improving regulatory efficiency, and strengthening the foundation of Nepal’s growing energy industry.