KATHMANDU: The Solar Power Producers Association Nepal (SOPAN) has urged the Electricity Regulatory Commission (ERC) to introduce policy and regulatory reforms to accelerate the development of Nepal’s solar energy sector and attract private investment.

A delegation led by SOPAN President Dr. Sandeep Shah met ERC Chairman Dr. Ram Prasad Dhital and other commission members on Thursday and discussed the sector’s existing challenges and proposed reforms.

SOPAN has called for the removal of the provision limiting solar power’s share in the national energy mix to 10%. It has also demanded that solar projects be given generation licences and power purchase agreements (PPAs) of up to 50 years, similar to hydropower projects.

The association has further proposed that future solar PPAs be opened through competitive bidding for at least 1,000 megawatts of capacity. It has also called for arrangements to integrate battery energy storage systems with new solar projects.

SOPAN submitted a memorandum outlining immediate policy measures needed to address existing challenges and support the long-term development of the solar industry.

The memorandum highlights four key areas for reform: strategic policy alignment, a fair and predictable regulatory framework, grid access and system integration, and the development of decentralized and agrivoltaic (agri-PV) projects.

SOPAN President Shah said solar power could play a critical role in easing electricity supply during the dry season, strengthening national energy security and attracting private-sector investment.

He expressed confidence that a technology-friendly policy framework, developed in coordination with the ERC, could help Nepal fully harness its solar energy potential.

Responding to the association’s demands, ERC Chairman Dhital said the commission was committed to creating a transparent, predictable and facilitative regulatory environment for the development of renewable energy in Nepal.