Nepal Electricity Authority Invites Bids to Supply Solar Power

The successful developers have to finish the construction and installation work and start supplying electricity within one year after they sign PPA agreement with the NEA.

To expand the power sources in the country the Nepal Electricity Authority (NEA) has beefed up its efforts while calling for global tenders to select independent developers and supply power to up to 25 substations at various locations.

The tender notice says that solar power developers have to install the plants with capacity of 1 to 5 MW that would supply electricity to state owned NEA for the period of 25 years.

The successful developers have to finish the construction and installation work and start supplying electricity within one year after they sign PPA agreement with the NEA.

As an incentive the NEA will also provide viability gap fund (VGF) to the developers that are selected for the projects. To get the funds NEA has already inked an agreement with manila-based multilateral lender Asian Development Bank.

The ADB will provide the VGF under the South Asia Sub-Regional Economic Cooperation Power System Expansion Project.

Chief of the Project Management Directorate at the NEA, Manoj Silwal said, “The ADB will support us with an $18.5 million grant to provide VGF to the developers,”

“We will pay the developer Rs6.60 per unit of electricity while the rest of the cost will be covered by the ADB’s fund,” he added further.

For example, if the NEA signs a PPA with a developer agreeing to buy electricity at Rs7 per unit, it will pay only Rs6.60. The remaining Rs0.40 will be paid from the VGF. “Since we have a limited fund of $18.5 million, the total installed capacity of the solar plants will be determined by the price at which the PPA deal is signed,” said Silwal.

The proposals have to be sent in two envelopes, technical and financial. The last date for the submission has been set as 21 June 2018, National power utility has instructed bidders.

Source: Kathmandupost