3,600 MW Applications for 800 MW Solar Power Purchase Agreement (PPA)

Nepal Electricity Authority (NEA) has received applications totaling 3,600 MW for an 800 MW solar power purchase agreement (PPA) it had called for. According to Rajan Dhakal, Director of the Power Trade Department under NEA, 134 companies have applied for around 3,600 MW of PPA. Currently, the technical evaluation of these companies is ongoing.

Key Highlights:

Applications and Process:

• The NEA invited bids in Chaitra 2080 to purchase an additional 800 MW of electricity from solar projects within the next two years.

• 134 companies have applied for nearly 300 projects.

• A single promoter is not allowed to apply for more than 150 MW.

• Small projects must provide electricity within 18 months, while larger projects have up to two years.

Standards for Power Purchase Agreements:

• PPAs will be made for solar projects constructed near substations owned by NEA.

• Priority will be given to electricity from solar projects to meet the increasing demand during the winter.

• Proposals were invited at competitive rates, with a maximum base rate set at NPR 5.94 per unit.

Infrastructure and Current Progress:

• So far, PPAs for 175 MW have been completed, of which 107 MW are operational.

• Additional solar projects of 30 MW are in the PPA process.

• A 25 MW solar project is operational within the premises of NEA's own Devighat Hydropower Center.

• Survey licenses have been issued for 42 projects with a total capacity of 757.7 MW, while 14 projects with a combined capacity of 97.06 MW are under construction.

By conducting PPAs for solar energy through competitive bidding, NEA aims to balance the national electricity supply and meet the increasing demand at load centers in the Terai region.