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Major institutions and HDP outline

Short answer

Major institutions: MoEWRI, WECS, DoED, NEA, ERC, IBN, AEPC, DHM, IPPs. The policy aims for low-cost, reliable power and export, enabling private BOOT with licensing (survey 5 yrs, generation 35/30 yrs), tax benefits, NEA power purchase, export after domestic demand, IEE/EIA and local benefit sharing.

Name the major institutions involved in the hydropower development sector in Nepal. Briefly outline the hydropower development policy of Nepal.

Major institutions

  • Ministry of Energy, Water Resources and Irrigation (MoEWRI) - policy and law.
  • Water and Energy Commission Secretariat (WECS) - planning and studies.
  • Department of Electricity Development (DoED) - licensing and monitoring.
  • Nepal Electricity Authority (NEA) - generation, transmission, distribution, power purchase.
  • Electricity Regulatory Commission (ERC) - tariff and regulation.
  • Investment Board Nepal (IBN) - large investments.
  • Alternative Energy Promotion Centre (AEPC) - micro-hydro and renewables.
  • Department of Hydrology and Meteorology (DHM) - hydrological data.
  • Private developers (IPPs) and associations such as IPPAN.

Outline of the Hydropower Development Policy 2001

  1. Aim: Low-cost, reliable and affordable electricity, rural electrification, and export of hydropower.
  2. Private participation: The private sector can build, own, operate and transfer projects; the government acts as regulator and facilitator.
  3. Licensing: No licence up to 1 MW; survey licence up to 5 years; generation licence up to 35 years (domestic supply) or 30 years (export-oriented).
  4. Incentives: Tax holiday, customs relief, low royalty in the early years, and repatriation of profit.
  5. Power purchase: NEA buys power under a PPA.
  6. Export: Allowed after meeting domestic demand.
  7. Environment and society: IEE/EIA, environmental flow, local benefit sharing and resettlement.
  8. Rural electrification through small and micro hydro with community participation.

✓ Answer checked by Claude Opus 5.5 (high effort)

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