Nepal Electricity Authority (NEA) is gearing up to sign power purchase agreement (PPA) with 22 projects for generation of 61 MW of solar energy, reports The Kathmandu Post.
Presently, the NEA board is reviewing the PPA template. These templates are to be signed with various developers to install solar plants at 22 different locations. Once, the templates have been finalized, the power trading department of the NEA will sign PPA with the developers to purchase the solar electricity produced at their plants for 25 years.
NEA had published a proposal in June 2016 for bids from interested parties to install solar plants and supply electricity to the power utility at a base price of Rs 9.61 per unit.
Prabal Adhikari, chief of power trading department of the NEA said, “We have selected parties that have quoted prices ranging from Rs 8.45 to Rs 9.61 per unit of electricity at different locations. Since the template of PPA is ready and the developers have already quoted their price, the PPA will be signed immediately after the board approves it.”
After the PPA is signed the developers will have to install solar plant of installed capacity ranging from 0.5 MW to 8.5 MW at 22 different locations in the country.
Butwal will have the largest solar power plant an installed capacity of 8.5 MW while Kawasoti will have the smallest one with an installed capacity of 0.5 MW
The developers will have 18 months to complete installation of the power plant. The electricity generated from the solar plants will be connected to the national grid via nearby substations of the NEA.