Supreme Court Ruling Jeopardizes 20,000 MW of Hydropower Projects, Warns IPPAN

The Independent Power Producers Association Nepal (IPPAN) has raised concerns over the future of approximately 20,000 megawatts of hydropower projects following a recent Supreme Court decision. The ruling dismissed an amendment to the National Parks and Wildlife Conservation Act, which had previously allowed development activities in protected areas.

At a press briefing in Kathmandu, IPPAN voiced its disappointment, stating that the decision puts 267 hydropower projects, with a combined capacity of 19,736 MW, in jeopardy. These projects, which have already invested heavily while adhering to legal requirements like royalties and taxes, are now facing uncertainty. General Secretary Balaram Khatiwada stressed that this move could severely impact Nepal’s hydropower ambitions and create significant challenges for the private sector.

The association estimated an annual revenue loss of over Rs 400 billion due to the ruling, citing halted royalties and tax contributions. IPPAN highlighted that the restriction on infrastructure development in protected areas threatens not only current projects but also Nepal's broader energy goals under the Energy Development Roadmap, 2081 BS. If the roadmap’s target of generating 28,500 MW within the next decade is hindered, the country may face electricity shortages.

IPPAN also expressed frustration, noting that private sector energy producers had been optimistic about fostering economic growth through hydropower. The association called for immediate government intervention to address the challenges posed by the court’s decision and to safeguard the nation’s energy and economic future.