Kathmandu, January 25
The power purchase agreement for the electricity generated from the solar project, which was going through normal process earlier, will now be done only through competition.
Considering the declining cost of equipment used in solar projects in the international market and the gradual reduction in cost, the Nepal Electricity Authority (NEA) has decided to enter into power purchase agreement (PPA) for the energy produced from the solar plant through competition.
A meeting of the NEA Steering Committee chaired by Minister for Energy, Water Resources and Irrigation Pampha Bhusal on Sunday has decided to make PPA of Solar through competition.
Minister Bhusal said that the decision was taken to make the energy produced from solar
accessible, competitive and transparent through PPA competition.
He said, ”In order to provide electricity to the people at concessional rates, the purchase of
electricity should be described as competitive and transparent.” We have started it through solar. ” Stating that the cost of power generation from solar is decreasing according to the
latest technology, Bhusal said, ”According to the previous decision, the PPA rate of solar should have been reviewed in three years.”
The NEA has decided to make the electricity tariff universally accessible, keeping in view the international norms, public demand, balance of electricity demand and supply and the essence of the prevailing law and order. From now on, PPA of electricity generated from solar projects will be done within the perimeter of 10 percent of the total connected capacity in the national grid as per the concept of production amalgamation of power projects.
Earlier, the Procedure on Grid Connected Alternative Power Development approved by the
Ministry of Energy, Water Resources and Irrigation on Magh 25, 2074 BS. It was decided that the rate would be maintained for the project for which the power purchase agreement will be concluded within a maximum of three years.
The decision of the Ministry was implemented by the decision of the 773rd meeting of the
Board of Directors of NEVIPRA on Asar 26, 2075. The three-year rate has not been revised yet.
Currently, the price of electricity generated from solar projects is continuously declining in the international market due to the latest technologies. NEA has so far signed PPA of 110 MW with 21 solar projects. Out of this, construction of 6 projects has been completed and 29 MW has been connected to the national grid.
According to the Department of Power Development, out of 25 projects with a total capacity of 609 MW, survey permission has been obtained. Solar projects with a total capacity of 117 MW of 19 projects have taken permission to generate electricity. A total of 35 projects have applied for permission to survey 912 MW of solar power generation.
By Karuna Thapa
