NEA Extends Deadlines for 27 Hydropower Projects of 540 MW

Kathmandu: The Nepal Electricity Authority (NEA) has extended the Required Commercial Operation Date (RCOD) for 27 hydropower projects with a combined capacity of 540.47 MW.

According to the Ministry of Energy, Water Resources and Irrigation, the NEA’s decision follows an assessment of projects that had signed Power Purchase Agreements (PPAs) but failed to complete construction within their original deadlines. The extension aims to support genuine developers while discouraging inactive promoters and making project management more transparent.

The NEA has classified projects into four groups based on physical progress, RCOD status and compliance with PPA obligations. Group A includes projects that have met key requirements such as obtaining licenses, securing financing and managing land. Group B covers projects delayed mainly by NEA transmission infrastructure or those with more than 25% physical progress after their deadlines.

The NEA said RCOD extensions are being processed for eligible Group A and B projects that have submitted the required documents and evidence.

Currently, 320 hydropower projects totaling 8,292 MW are under construction at various stages. Of these, 150 projects totaling 4,491 MW are in Group A, while 68 projects totaling 1,420 MW are in Group B.

Group C consists of projects that have failed to secure the necessary generation licenses or complete financial and land arrangements, and have achieved less than 25 percent physical progress by the time their RCOD expired.

Group D comprises projects that have failed to fulfill mandatory obligations or have had their survey and generation licenses revoked. Projects in Group ‘B’, meanwhile, will undergo regular monitoring.

Projects in Groups C and D face major compliance or progress issues, including failure to secure licenses or financing, low physical progress, or cancellation of survey and production licenses.