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Government Committee Recommends Cancellation of 38 Sluggish Hydropower Licenses Totaling 1,388 MW

A high-level committee under the Ministry of Energy, Water Resources, and Irrigation has recommended revoking the licenses of 38 hydropower projects with a combined capacity of 1,388 MW due to zero progress despite Power Purchase Agreements (PPAs). The move follows the government's 100-point governance reform action plan and the budget statement targeting inactive projects.

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Government Committee Recommends Cancellation of 38 Sluggish Hydropower Licenses Totaling 1,388 MW

A high-level committee formed by the Ministry of Energy, Water Resources, and Irrigation has recommended the cancellation of licenses for 38 hydropower projects, totaling 1,388 MW, which have failed to show any progress long after signing Power Purchase Agreements (PPAs). This evaluation was carried out in line with point 74 (b) of the government's 100-point governance reform action plan to review the current status of licenses issued by the Department of Electricity Development. Additionally, the committee recommended revoking licenses for 11 other projects (totaling 169 MW) that obtained production permits before 2019 but have since made no progress, citing violations of permit conditions and failure to comply with Rule 21 of the Electricity Regulation 2050. The comprehensive study categorized remaining projects based on performance, placing 15 projects (220 MW) with over 50% progress within five years on a priority list, and 131 projects (5,642 MW) nearing 50% progress on an encouragement list. Furthermore, 38 projects (1,124 MW) facing mixed execution challenges were marked for facilitation to accelerate completion, while 75 troubled projects (4,121 MW) with extremely weak progress were recommended for disciplinary action. Backed by the fiscal year budget statement which explicitly dictates the cancellation of licenses for projects that have secured PPAs but failed to initiate construction, the government now has a clear path forward to penalize non-performing developers.

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