Himal Press 
KATHMANDU: Nepal Electricity Authority (NEA) has decided to extend the Required Commercial Operation Date (RCOD) of 27 hydropower projects with a combined capacity of 540.47 MW.
The NEA made the decision after assessing the current situation of the projects that have signed power purchase agreements (PPAs) but missed project completion deadlines.
Earlier, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha had told hydropower developers that the government had a policy of facilitating genuine investors.
The extension of RCOD will help developers who have missed generation deadlines,
NEA had categorized 218 under-construction hydropower projects into A, B, C and D based on physical progress, situation of RCOD and responsibilities of developers as per the PPA.
Projects that have met all basic responsibilities have been put into Category A, while those that have achieved at least 25% physical progress, are suffering from circumstances beyond control, or are facing problems due to delays in construction of transmission infrastructure by the NEA are in Category B.
According to NEA, 320 projects with a combined capacity of 8,292 MW are at different stages of construction at present. Of them, 150 projects with a combined capacity of 4,491 MW have been classified as Category A and 68 projects with a capacity of 1,420 MW as Category B projects. The remaining projects are in C and D categories.
Category ‘C’ includes projects that have not acquired a generation license, achieved financial closure, or arranged land management, and have less than 25 percent physical progress by the RCOD (Required Commercial Operation Date) expiry. Likewise, Category ‘D’ includes projects that have failed to fulfill mandatory obligations or whose survey and generation licenses have been revoked.
