Himal Press 
KATHMANDU: The Nepal Electricity Authority (NEA) has said that it is preparing to move forward with power purchase agreements (PPAs) for hydropower projects with a capacity of less than 10 MW.
During a meeting with a delegation from the Independent Power Producers’ Association Nepal (IPPAN) on Monday, Acting Managing Director Dirghayu Kumar Shrestha shared that the PPA process for projects below 10 MW has already been initiated.
Shrestha also said the NEA has begun processing requests to extend the required commercial operation date (RCOD) for projects. According to him, projects have been categorized into “Group A” and “Group B” based on their nature and specific issues to facilitate the extension process.
He added that the NEA was ready to form a joint mechanism with IPPAN to address problems faced by the private sector.
During the meeting, IPPAN President Mohan Kumar Dangi urged the NEA to address long-standing issues raised by private developers. He called for opening PPAs for projects totaling 16,000 MW that have already applied for agreements.
“The problems of projects that have been unable to secure PPAs for a long time must be resolved immediately by allowing all eligible projects to proceed with the PPA process,” Dangi said. “Delays in PPAs have affected investment, financial closure and overall project development for projects in both study and construction phases.”
In its memorandum submitted to the NEA, IPPAN also demanded appropriate compensation for financial losses incurred by developers due to delays in the construction of transmission lines. It called for ending the practice of contingency and “take-and-pay” PPAs until transmission lines are available, and ensuring guaranteed power purchase once projects are completed.
IPPAN further urged the NEA to allow private-sector participation in transmission line construction, make grid access more investment-friendly, and set wheeling charges on a scientific, transparent and equitable basis.
