NEA Orders Hydropower and Solar Developers to Submit Progress Reports Within Seven Days

KATHMANDU: The Nepal Electricity Authority (NEA) has directed all hydropower and solar projects with signed Power Purchase Agreements (PPAs) to submit detailed project progress reports within seven days.

In a public notice issued on Saturday (Asar 6), the Electricity Trade Department under the NEA’s Business Development Directorate instructed developers of all under-construction projects to immediately provide progress updates that are required under the terms of their PPAs.

The authority warned that failure to submit the reports within the stipulated timeframe could result in legal and administrative action in accordance with the provisions of the PPA agreements.

Developers Question NEA’s Own Performance

The directive has sparked debate within Nepal’s energy sector, with private developers arguing that accountability should apply not only to project promoters but also to the power utility itself.

Industry representatives noted that while developers are obligated to construct projects and generate electricity as per contractual commitments, the NEA is equally responsible for purchasing power, ensuring timely grid connectivity, and developing the necessary transmission infrastructure.

Private-sector stakeholders say several projects have been adversely affected by delays in decisions related to Revised Commercial Operation Dates (RCODs), while others have faced uncertainty due to incomplete transmission infrastructure.

According to developers, delays in the construction of key transmission lines and substations have prevented some completed projects from connecting to the national grid, resulting in stranded generation capacity and potential energy losses.

Concerns Over Grid Bottlenecks

Developers say they are prepared to provide the requested progress reports but believe the NEA should also publicly disclose the status of its own commitments and obligations.

Several project promoters argue that inadequate grid connectivity has delayed projects for years, while hundreds of megawatts of planned generation capacity remain stuck awaiting PPA approvals.

The issue has become increasingly important as Nepal continues to expand its hydropower sector and seeks to capitalize on growing domestic demand and electricity export opportunities.

Industry participants warn that an accountability framework focused solely on private developers could undermine investor confidence and slow future investment in the sector.

Calls for Greater Transparency

Energy-sector stakeholders have called for a more collaborative approach between the public and private sectors, emphasizing that Nepal’s energy ambitions depend on partnership and mutual trust.

They argue that alongside issuing directives to developers, the NEA should regularly publish updates on transmission-line construction, substation development, grid expansion plans, and the status of pending commitments.

According to industry representatives, greater transparency regarding infrastructure development and project readiness would help improve coordination, reduce uncertainty, and accelerate the completion of energy projects.

The latest directive comes as Nepal continues to pursue ambitious targets for hydropower expansion, with dozens of projects under construction and significant private-sector investment flowing into both hydropower and solar energy development.