Nepal | May 27, 2020

NEA calls for PPA with PRoR project developers

Pushpa Raj Acharya
Share Now:

Kathmandu, July 27

Nepal Electricity Authority (NEA) has called for power purchase agreement (PPA) with developers of peaking run of the river (PRoR) projects on ‘take or pay’ basis under government’s plan to develop 10,000 megawatts of electricity in 10 years.

The NEA board meeting a few days back decided to seek PPA for PRoR projects as the quota for run of the river-based projects has run out since last week. Under the ‘take or pay’ provision, NEA has to pay for the power generated whether or not the power off-taker can expand market to sell the energy.

NEA introduced ‘take or pay’ PPA since February this year for up to 10,000 megawatts of power that is going to be generated within 2026. It has fixed a quota of 30 per cent (3,000 megawatts) of the aforementioned quantum of electricity for run of the river projects, 20 per cent for PRoR projects (2,000 megawatts) and 50 per cent (5,000 megawatts) for storage projects.

The Ministry of Energy (MoE) decided to extend ‘take or pay’ PPA to projects that have signed grid connection agreement with NEA since February 18, 2016, after the ‘Energy Crisis Prevention and Electricity Development Decade’, a 10-year vision document of the MoE was endorsed by the Cabinet.

Project Details_Reservoir project_RoR projects_PRoR projects

Source: Nepal Electricity Authority

The quota for the run of the river projects under ‘take or pay’ PPA is over now after PPA was signed with 18 new projects with total capacity to generate 310 megawatts to be developed by independent power producers. The quota has been filled as NEA has included all the projects under construction, those that have already been developed and also those NEA projects that are in the pipeline in the scheme.

The number of applications for RoR projects is increasing because such projects are considered as low-cost projects, but the power utility has closed the ‘take or pay’ PPA for RoR projects. “Henceforth NEA can sign PPA with RoR projects only on ‘take and pay’ basis, according to Prabal Adhikari, spokesperson for NEA, who also heads the Power Trade
Department at NEA.

While NEA has set a quota of 2,000 megawatts for PRoR projects, it has included the already completed NEA projects like 144MW Kaligandaki, 70MW Middle Marsyangdi, 50MW Upper Marsyangdi, 30MW Chameliya, 22MW Chilime and 24MW Trishuli. Because of this, there is only limited quota for PRoR projects, according to Adhikari.

NEA has said that PPA for storage projects will be opened after deducting the capacity of existing projects like Kulekhani.


A version of this article appears in print on July 28, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Budget expectations

The government is all set to announce the budget for next fiscal year on Thursday and people involved in different sectors have various expectations. Amid this, The Himalayan Times spoke to a few tourism entrepreneurs who were not satisfied with the government’s policies and programmes to learn ab Read More...

NRB directs BFIs to categorise banknotes based on quality

Kathmandu, May 25 Nepal Rastra Bank (NRB) has directed banks and financial institutions (BFIs) to categorise banknotes based on their quality — new, clean and useless. Issuing a nine-point circular on Sunday, the central bank directed BFIs to categorise banknotes accordingly and maintain the Read More...

File photo of the headquarters of the World Health Organisation in Geneva

WHO warns of 'second peak' in areas where COVID-19 declining

GENEVA: Countries where coronavirus infections are declining could still face an “immediate second peak” if they let up too soon on measures to halt the outbreak, the World Health Organization said on Monday. The world is still in the middle of the first wave of the coronavirus outbreak, WHO Read More...

House committee directs govt to prioritise expansion of internet service

KATHMANDU: The Development and Technology Committee of the House of Representatives has directed the government to keep the expansion of broadband internet service under high priority during allocation of next fiscal year's budget. Nepal Telecommunications Authority has been operating the broadba Read More...

15 including ward chair arrested in connection with Dalit youth's killing in Rukum

JAJARKOT: Police have arrested Dambar Bahadur Malla, ward chair of Chaurjahari Municipality-8 along with fifteen others in connection with the death of three youths in Rukum West. Three more are still missing while scores were injured in the incident. One of the youths, Nawaraj BK (21) of Bheri M Read More...

Australian PM calls for economic overhaul to fuel post-coronavirus recovery

Truce between employers and workers needed: PM Australia plots economic recovery Australia records just over 7,100 cases of COVID-19 Six cases from ship recently arrived from the UAE recorded SYDNEY: Australian Prime Minister Scott Morrison on Tuesday called for an ideological truc Read More...

Nepal reports highest single-day spike, Covid-19 spreads to 46 districts

KATHMANDU: Health Ministry on Tuesday confirmed 90 new cases of coronavirus infection which has taken the Covid-19 case tally to 772 in the country. This is the highest single-day total recorded in Nepal, so far. The new infections were detected through tests carried out at the National Public Read More...

Prime Minister Oli calls an all-party meeting

KATHMANDU: Prime Minister KP Sharma Oli has called an all-party meeting today. The meeting has been called to discuss COVID-19 situation in the country, the government's response and the way ahead. PM Oli had addressed the nation yesterday regarding the same. In addition, it has been learnt th Read More...