Solar Power Producers Urge Government to Scrap 10 Percent Energy Mix Cap

KATHMANDU; The Solar Power Producers Association Nepal (SOPPAN) has demanded the government to remove the 10 percent cap on share of solar power in the national energy mix.

In a meeting with newly appointed Electricity Regulatory Commission (ERC) Chairman Ram Prasad Dhital and members of the commission on Thursday, the delegation of SOPPAN led by its President Sandip Shah put forth the issue before the regulator. The association’s other demands include extending generation license and Power Purchase Agreement (PPA) terms to 50 years for parity with hydropower, launching the next solar PPA auction for at least 1,000 MW, and enabling Battery Energy Storage Systems (BESS) alongside new solar projects.

During the meeting, SOPPAN formally submitted a petition outlining priority reforms across four key areas: strategic policy alignment, a fair and predictable regulatory framework, grid access and system integration, and distributed and agri-PV development.

“We deeply appreciate the Chairman and the Commission's openness to today's discussion. Solar is uniquely positioned to strengthen dry-season supply, enhance energy security, and attract private investment into Nepal's power system. We look forward to working closely with the ERC to build a fair, predictable, and technology-appropriate regulatory framework that allows solar to reach its full potential,” said Sandip Shah, president of SOPPAN.

According to SOPPAN, it has sought collaboration also to advance these reform measures in a constructive and practical manner, in support of a resilient and diversified national power system.

The ERC Chairman and members acknowledged the sector's concerns and reaffirmed the Commission's commitment to fostering a transparent and enabling regulatory environment for renewable energy development in Nepal.