NEA to ink PPAs for hydro projects up to 10 MW


KATHMANDU, FEBRUARY 28:  Nepal Electricity Authority (NEA) has said that it is gearing up to strike power purchase agreements (PPAs) targetting hydropower projects up to 10 MW capacity.

According to a notice issued yesterday, it stated, ” We have opened PPAs for run-of-river and semi-reservoir hydropower projects up to 10 MW. So, the related hydropower projects are requested to furnish relevant documents to the Department of Electricity Development for such deals.”

On February 7, the 96th meeting of the Board of Directors of the NEA had decided to remove the quota system for hydropower projects up to 10 megawatts and open PPAs on the ‘take or pay’ basis.

According to the NEA, even when the capacity is increased by up to 25 percent, the PPAs will not be subject to the set limit.

The limit of PPAs set on the basis of a production mix of up to 10 megawatts is not applicable in order to maximize the use of local natural resources and to encourage domestic investors in the hydropower sector, the NEA said.