The Nepal Electricity Authority (NEA) has seen a significant increase in interests from energy entrepreneurs, with applications reaching 3,600 MW in response to its offer for Power Purchase Agreements (PPAs) for 800 MW of solar power. This response, which is more than four times the goal amount, indicates rising trust in solar energy as an important component of Nepal’s future energy mix.
The NEA’s release proposal for solar bids on April 2024. It drew 134 organizations offering over 300 projects. This decision goes along with the government’s efforts to diversify the country’s energy sources. It is now rely mainly on hydropower for 95% of the 3,200 MW installed capacity.
Rajan Dhakal, Director of the Power Trade Department, stated that the NEA is prioritizing solar energy to fulfill rising demand, especially in the Terai area. To control the increase of bids, the NEA has limited individual solar projects to 150 MW with 25-year PPAs. The base pricing for solar-generated power under the PPA is fixed at Rs 5.94 per unit.
NEA Managing Director Kulman Ghising emphasized the need of incorporating solar electricity into the national grid to maintain a consistent supply during peak demand seasons, particularly in winter. Currently, the NEA has signed PPAs for 175 MW of solar power, 107 MW of which are operational, including a 25 MW project at the Devighat Hydropower Plant. Additional agreements for 30 MW are in the final stages.
According to research by the Investment Board Nepal, Nepal has significant solar energy potential due to its average of 300 sunny days each year. This puts solar energy as a vital component in safeguarding the country’s long-term and stable energy future.
Also read: Final Phase of Bharatpur Ring Road Project Nears Completion
Source: https://myrepublica.nagariknetwork.com/news/159119/?utm_source=nepalipatro&utm_medium=np_mobile&utm_campaign=np_news
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