Kathmandu. Following the initiative of Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha, the Nepal Electricity Authority (NEA) has extended the scheduled date for the commencement of commercial operation (RCOD) of 27 hydropower projects with a combined capacity of 540.47 MW in the first phase.
The Independent Power Producers’ Association, Nepal (IPPAN), had been urging the ministry to extend RCOD deadlines in response to a long-standing demand from the private sector. Following the demand, and at Minister Shrestha’s initiative, the NEA extended the RCOD of projects that had already signed power purchase agreements (PPAs) but failed to complete construction within the stipulated timeframe, after assessing their actual status.
Minister Shrestha had earlier held discussions with hydropower developers and said the government’s policy was to facilitate genuine investors and projects that were actually moving ahead with construction.
IPPAN Vice President Narendra Ballav Pant said the association welcomed the first-phase decision. He said IPPAN would take the initiative to address the cases of other projects left out in the second phase.
The NEA had classified a total of 218 projects into four groups—‘A’, ‘B’, ‘C’ and ‘D’—based on their physical progress, RCOD status and the obligations developers are required to fulfill under their PPAs. Based on this classification, the process of extending RCODs has been initiated for projects in groups ‘A’ and ‘B’ that have submitted the required documents and evidence.
The NEA Board meeting held on Ashadh 32 decided, for the first time, to classify projects based on clear criteria. Group ‘A’ includes projects that have fulfilled the required basic obligations, while Group ‘B’ includes projects affected by delays in transmission infrastructure construction caused by the NEA, circumstances beyond the developers’ control, or projects that have achieved at least 25 percent physical progress.
Minister Shrestha said the government’s policy was not to create problems for the private sector but to facilitate projects that are genuinely progressing with construction. He said the government was committed to developing a system in which decisions on RCOD extensions are based not on the wishes of individuals but on clear criteria and an institutional mechanism.
Stating that the government is sensitive to the security of private-sector investment and the dignity of investors, Minister Shrestha also emphasized that developers must fulfill their own obligations on time. He said the energy sector can gain momentum only when mutual accountability is maintained between the government and the private sector.
According to the NEA, 320 hydropower projects with a combined capacity of 8,292 MW are currently at various stages of construction. Of these, 150 projects with a combined capacity of 4,491 MW are in Group ‘A’, while 68 projects with a combined capacity of 1,420 MW are in Group ‘B’. The remaining projects have been classified under groups ‘C’ and ‘D’.
Group ‘C’ includes projects that have failed to obtain the required generation license, complete financial arrangements or secure land, as well as projects that had achieved less than 25 percent physical progress by the time their RCOD expired. Group ‘D’ comprises projects that have failed to fulfill mandatory obligations or whose survey or generation licenses have been revoked.
Projects under Group ‘B’ will be subject to regular monitoring. The NEA’s Electricity Trade Department will issue necessary instructions to ensure that the projects are completed on time and will monitor their implementation. If deemed necessary, projects may be reclassified within a maximum period of six months.
The provision is intended to distinguish between under-construction projects affected by genuine circumstances and those that have made little or no progress for a long period. It is expected to facilitate private-sector investment while establishing a stronger basis for accountability in project construction.
Recent RCOD Extensions: Approved and Slated for Finalization
Moonlight Hydropower Company Limited — Balephi A HEP — 22,140 kW
Integrated Hydro Fund Nepal Pvt. Ltd. — Upper Brahmayani — 15,150 kW
Brahmayani Hydropower Pvt. Ltd. — Brahmayani — 35,470 kW
Sita Hydropower Company Pvt. Ltd. — Nyasim Khola Hydropower Project — 35,000 kW
Himali Hydro Fund Pvt. Ltd. — Sona Khola HEP — 9,000 kW
Greenlife Hydropower Limited — Khani Khola-1 HEP — 40,000 kW
Lower Mid Rawa Khola Hydropower Project Pvt. Ltd. — Lower Mid Rawa — 4,000 kW
Halesi Urja Pvt. Ltd. — Madhya Rawa — 2,200 kW
Barpak Daraudi Hydropower Pvt. Ltd. — Middle Super Daraudi — 10,000 kW
Sunnima Hydropower Company Pvt. Ltd. — Upper Pikhuwa Khola — 4,900 kW
Sasha Engineering Hydropower (P) Ltd. — Khani Khola — 30,000 kW
Vision Energy & Power Ltd. — Nupche Likhu HPP — 57,500 kW
Orbit Energy Private Limited — Sabha Khola C — 6,290 kW
Mount Rasuwa Hydropower Pvt. Ltd. — Midim 1 Khola — 13,424 kW
Silk Power Private Limited — Luja Khola HEP — 24,824 kW
Water Energy Solution Pvt. Ltd. — Upper Deumai — 8,300 kW
Phedi Khola Hydropower Company Pvt. Ltd. — Phedi Khola (Thumlung) — 4,300 kW
North Summit Hydro Limited — Nyadi Phidi HEP — 21,400 kW
S.K. Energy Development Limited — Shyam Khola HEP — 7,200 kW
Himalayan Water Resources and Energy Dev. Co. — Upper Chauri Khola Small — 6,000 kW
United Mewa Hydropower Limited — Mewa Khola HPP — 50,000 kW
Raghuganga Hydropower Ltd. — Rahughat — 40,000 kW
Him Parbat Hydro Ltd. — Sanghu HPP — 20,000 kW
Dibyajyoti Hydropower Co. Ltd. — Marsyandi Besi HPP — 50,000 kW
Him Parbat Hydro Ltd. — Sanghu Khola 1 HPP — 5,500 kW
White Lotus Company — Hidi Khola — 6,820 kW
Omega Energy Ltd. — Sunigad HPP — 11,050 kW
Urjasanchar