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February 28: Nepal Electricity Authority (NEA) has announced power purchase agreements (PPAs) for hydropower projects up to 10 MW capacity.
Issuing a notice on Tuesday, the NEA said it has opened PPAs for run-of-river and semi-reservoir hydropower projects up to 10 MW. The NEA has urged the hydropower projects to submit relevant documents to the Department of Electricity Development for the PPA.
The 96th meeting of the Board of Directors of the NEA on February 7 had decided to remove the quota system for hydropower projects up to 10 megawatts and to open PPAs on the ‘take or pay’ basis.
Officials of the NEA have said that even when the capacity is increased by up to 25 percent, the PPA will not be subject to the PPA limit.
The NEA has concluded that the limit of PPAs set on the basis of a production mix of up to 10 megawatts is not applicable in order to maximize the use of local natural resources and to encourage domestic investors in the hydropower sector.
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