Nepal Electricity Authority takes strict action against non-compliant power projects

KATHMANDU: In a recent move, the Nepal Electricity Authority (NEA) has taken decisive action by removing 15 different power projects from its list due to their failure to enter into a Power Purchase Agreement (PPA). The NEA cited non-compliance with the specified application period and the absence of necessary documentation as the primary reasons for this action, mainly affecting run-of-the-river projects.

These ousted projects, totaling a combined capacity of 215 MW, were unable to advance through the PPA process, with projects like Upper Trishuli II (102 MW) and Chamelia Chhatigad (85 MW) being among those affected. Following this removal, the NEA is now urging promoters of six other projects, boasting a combined capacity of 228 MW, to initiate the PPA process promptly.

The NEA has given a strict deadline of 15 days for these project promoters to reach out and commence the necessary procedures. The decision to prioritize ongoing PPA projects aligns with the NEA’s resolution in its 930th meeting on February 9, 2023.

The authority has set a goal to follow the roster order of the Grid ‘Connection Agreement’ until reaching the maximum limit of 6,750 MW for river flow projects. This strategic approach aims to streamline the PPA process and ensure the efficient utilization of Nepal’s hydroelectric potential.