NEA revises PPA rate to purchase electricity generated by solar power

kathmandu: Nepal Electricity Authority (NEA) has reduced the base rate from Rs 7.10 per unit to Rs 5.94 per unit to purchase electricity generated by solar power through bidding.

According to the NEA, it has taken the measure to facilitate supply of solar power in the needy areas. For this purpose, the authority has planned to purchase 100 MW of electricity generated by solar power plants through competition.

The state-owned power utility in this regard has called on the interested firms to submit their letter of intent (LoI). Last year, the NEA board decided to open the PPA for solar power through a competitive bidding process.

According to the NEA, the step is a part of its plan to promote the mix-energy sources. The new measure is expected to make the purchase of solar power more accessible and transparent.

The NEA has given interested firms a deadline of February 26 to submit LoI for technical assessment. The companies selected in the first phase will have to submit their financial proposal. According to the NEA, the approved companies will have to complete installation of solar plants in the next 18 months.

The power utility has maintained a threshold of 10 percent of the total electricity flown into the national grid to fix the base rate of the PPA. Likewise, the PPA will be opened only for areas selected by the NEA.

NEA’s Spokesperson Suresh Bahadur Bhattarai said the projects will have to be installed only in the areas defined by the authority. “We will be targeting to supply solar power in areas where there is relatively little potential for hydropower,” he said.

Currently, a total of 1,521.15 MW of solar power are under construction, while six projects have supplied 39 MW of electricity to the national grid.