Nepal Invites Tenders for 100 MW Solar Projects

Nepal Electricity Authority (NEA), the state-owned power utility, has invited bids for the selection of independent power producers (IPPs) for the development of 100 MW of grid-connected solar PV capacity. These projects will come up at 16 designated sites in the Himalayan country.

According to the notification, the last day for the players to submit their bids is February 26, 2023. Companies from any country can submit bids. The NEA said that the tendered projects should be of 1-MW at least in capacity. However, the green energy capacities at certain sites can range between 10 MW and 30 MW.

The notification also said that those projects that will be selected will be granted 25 year power purchasing agreements (PPAs). The Nepalese authority has set a maximum PPA price of NPR 5.96/kWh in March this year. The power generated from the solar projects will be purchased by NEA.

Developers need to commission the projects within 18 months from the date of signing the PPAs. With regards to eligibility, the developers submitting bids must possess experience in developing grid-connected solar projects of 1-MW or 5-MW grid-connected renewable power projects other than solar.

The eligibility criteria also hold that bidders also need to have survey licence for generation or generation licence from the Nepal’s Department of Electricity Development. They must possess a quarter of a hectare of land for every MW for the project.

NEA wants the deployment of only crystalline silicon modules or thin-film modules in the solar projects.

The winners will also have to install a transmission line of 11kV or above from the substation of the solar project to the substation of NEA.

As per International Renewable Energy Agency (IRENA), Nepal had installed 93 MW of cumulative solar capacity by the end of 2021. Nepal has joined the International Solar Alliance and the Nepalese government had said in April this year that it will export solar energy to India.

Subsequently, Delhi-based solar energy developer GreenZo Energy revealed that it has signed an MoU with Nepal’s API Power for the development of 50 MW of green hydrogen plants in Nepal.