February 10, 2025, Monday
Nepal 1:37:26 pm

IPPAN and ProClime sign agreement carbon trade of 2000 megawatts of electricity

The Nepal Weekly
February 4, 2025
Agreement signed

Independent Power Producers Association Nepal (IPPAN) has signed an agreement with Pro Clime regarding the acquisition of International Renewable Energy Certificate (IREC) for 2,000 megawatts of electricity produced by the private sector.

President of IPPAN Ganesh Karki and chief executive officer of Pro Clime Kavin Kumar Kandasamy exchanged the memorandum of understanding during a programme held in Kathmandu recently.

IPPAN is the umbrella organization of private hydropower project entrepreneurs engaged in development of private sector and benefit to the country by developing hydropower projects. ProClime, an institution with a mission to create a more sustainable world through a comprehensive approach to Carbon Projects, Carbon Trade and Climate Investments. Pro Clime envisions a world where Net Zero is achieved through scalable and impactful projects.

As per the agreement 2700 MW of electricity generated by the private sector in Nepal will be eligible for carbon trading in the first phase. With the agreement, Nepal’s private sector can trade carbon worth about 1 billion rupees per year.

Launching IREC Calculator

On the occasion Kandasamy said that since India, Bhutan and Sri Lanka are getting benefit from carbon trade, Nepal can also tap this opportunity. Moreover, hydropower projects constructed in Nepal meet the standards of sustainable development. So as hydropower projects of Nepal can get money from the carbon trade.

On the occasion, chairman of Electricity Regulation Commission Dr. Ram Prasad Dhital launched the IREC Calculator designed for Nepal’s context. The calculator is capable to show how many megawatts of electricity is produced and how much rupees worth of carbon trading is eligible for it annually. If the 2,600 megawatts of electricity produced by the Nepali private sector like is connected with carbon trading, it should get a profit equal to about 1 billion rupees annually.