NEA Opens PPA for 5,000 MW Hydropower Projects After Leadership Shift

The Nepal Electricity Authority (NEA) has decided to open Power Purchase Agreements (PPA) for 5,000 MW of hydropower projects after keeping them on hold for over five years. The decision came during a board meeting held on Tuesday night, shortly after Hitendra Dev Shakya was appointed as the new NEA Managing Director. The move addresses long-standing demands from private hydropower developers, who had been urging the government to resume stalled PPAs.

The change in leadership follows a prolonged dispute between former NEA Chief Kulman Ghising and Energy Minister Deepak Khadka, which had prevented board meetings for over two months. Ghising had prioritized storage-based and pumped storage hydropower projects, citing cost efficiency and reliability concerns due to climate change. However, after Ghising’s dismissal in Monday’s Cabinet meeting, Minister Khadka, with the support of Shakya, reopened PPAs for run-of-river (RoR) projects.

In addition, the NEA board has decided to issue a whitepaper on NEA’s financial status, suspecting possible financial misrepresentation under Ghising’s leadership. The board also amended the NEA Employee Service Bylaws, transferring the authority to relocate staff from the NEA Chief to the board, sparking resistance from two employee unions, who have warned of potential protests.