Kathmandu, December 26
Hydropower developers are still waiting to sign the power purchase agreement (PPA) with Nepal Electricity Authority (NEA) for 200 hydropower projects with a total installed capacity of 6,000 megawatts of electricity. And a majority of these projects are being developed by independent power producers.
According to NEA, there are some practical issues related to the Nepal Electricity Regulatory Commission (NERC) regarding the determination of the theoretical basis to ink PPA with developers.
Prabal Adhikari, the spokesperson for NEA, said as per guidelines of NERC, power developers need to complete a survey, prepare the environment and social impact report, obtain power generation licence, submit technical and financial aspects of their power projects and the tentative rates, among others before the PPA can be signed.
Earlier, the power utility could independently negotiate and determine the power purchase rates with the developers.
As per Article 13 (c) of the NERC Act, parties that are involved in the sale and purchase of electricity can set the price per unit of power only after receiving permission from NERC. However, PPA guidelines of NEA do not have this provision.
“Since there is confusion regarding this issue in between NERC’s and NEA’s guidelines, we cannot take any decision regarding PPA unless NEA board gives a concrete answer on the issue,” informed Adhikari.