Nepal Electricity Authority Proposes To Increase Solar Power Generation in Dry Season

On August 31, Nepal's Republican newspaper reported that in April this year, the Nepal Electricity Authority issued a tender notice for the purchase of 800 megawatts (MW) of solar power generation over the next two years. Recently, they received applications from 134 companies aiming to generate 3,600 MW of power through more than 300 projects, surpassing the target amount by more than four times. Of these, 175 MW of power purchase agreements have been signed, with 107 MW of projects already commissioned. This highlights the significant potential for solar power in Nepal and sets the stage for a positive solar power conclusion in the coming years.

Currently, the installed capacity in the country is about 3,200 MW, with 95 percent of this derived from hydropower. The Government is considering optimizing the energy mix to ensure a sustainable supply of energy, particularly in the event of a drop in hydropower production after the rainy season, as well as to accommodate the increasing loads in the Terai region. Notably, according to the public tender document of the Nigerian Investment Commission, the average number of days of sunshine in the country is 300 per year, and each square meter of solar radiation received generates between 3.6 and 6.2 units of electricity. These solar panels facts underscore the significant potential for solar energy development, offering a viable alternative to traditional power sources.

The above solar projects are proposed to be constructed in the vicinity of substations under the Electricity Board with sizes of 200 KV, 132 KV and 33 KV, with the Power Purchase Agreement (PPA) base rate fixed at Rs. 5.94 per unit, and are proposed to generate solar power up to 10 per cent of the total installed capacity in the country after integration into the national grid.