Nepal Launches 100 MW Solar Power Capacity Tender

• Nepal is looking for interested bidders to submit proposals for 100 MW solar PV capacity
• It plans to have this capacity auctioned with a ceiling tariff of NPR 5.94 per kWh
• A single company can submit as many bids with a minimum capacity of 1 MW for each location
• Winners will enter into 25-year PPA with the NEA for projects to be located in areas with lower potential of hydropower

The Nepal Electricity Authority (NEA) has invited proposals for 100 MW solar PV capacity to be grid connected set up across various locations and will enter power purchase agreements (PPA) with the winners for 25 years.

Minimum capacity sought at a single location is 1 MW. Interested bidders need to submit separate bids for each site and can offer to build as many projects. Projects should be built only with established PV technologies to minimize technology risk.

Benchmark tariff is fixed at NPR 5.94 ($0.045) per kWh, which according to local news portal My Republica is lower than NPR 7.10 per kWh at which the NEA has been purchasing solar electricity till date. So far the utility has signed PPAs for 110 MW solar PV capacity in the form of 21 projects, of which 29 MW has been connected to the grid.

New projects under the 100 MW solar tender are planned to be located in areas that have relatively less potential of hydropower.

Projects need to be commissioned within 18 months from the date of signing the PPA, according to the tender launched in late November 2022.

Last date to submit proposals is February 26, 2023 and the technical proposals will be opened on February 26, 2023. Further details are available on the NEA's website.

In June 2021, Nepal invited concept notes applications for distributed renewable energy projects with up to 1 MW installed capacity with support from UK-Aid (see Funding For Distributed Renewable Energy Projects In Nepal).