KATHMANDU, Nov 18: The recent initiative of Nepal Electricity Authority (NEA) to install solar plants for generation of electricity during winter has come to a grinding halt following a court order. The Patan High Court on Sunday issued an interim order against the NEA’s decision to award contracts to install solar power projects.
The NEA had awarded contracts to 64 developers on November 11 to install Grid-Connected Solar PV Power Projects across the country. These projects were expected to produce a total of 960 MW of electricity via solar power plants.
Although the state-owned power utility announced to have selected developers by competitive bidding process, a number of dissatisfied energy entrepreneurs filed a writ at the High Court, alleging the NEA of its involvement in collusion with influential power developers. According to them, the NEA deliberately extended the deadline for bidding in this regard, so as to award the contracts to selected entrepreneurs.
Tapping into the sun
Last week, the NEA had asked for letters of intent from the 64 solar power companies that maintained the tariff rates in the range of Rs 4.99 per unit and Rs 5.55 per unit in their proposals. While a 10 MW Annapurna Clean Energy Pvt Ltd has sought to sell its product for the lowest tariff rate, an 8 MW Sanvi Energy Limited has proposed the tariff rate at the highest of Rs 5.55 per unit. Solar Farm Ltd has been selected for the contract to produce the highest of 40 MW of solar-based electricity.
Unsatisfied by the NEA’s decision, Sustainable Energy Ventures Pvt Ltd and Yambling JV filed writ at the Patan High Court. The court has called both sides for discussion on Monday.
The NEA has been prioritizing the installation of solar power projects mainly to meet the demand for electricity during the winter season, when the production level of hydropower plants plunges below their capacity. “We have sought to increase the share of solar power in the grid supply citing a successive decline in electricity production every winter,” said NEA Managing Director Kulman Ghising.
The record with the NEA shows that approximately 207 MW of solar power projects are in various stages of operation, construction and documentation phase at present. Among these, 16 solar projects totaling 82 MW are from the private sector, 25 MW is produced by the NEA installed plants in Trishuli and Nuwakot districts and the remaining 100 MW is being operated by Alternative Energy Promotion Center.
According to a study carried out by the German Agency for International Cooperation (GIZ), Nepal has a total potential for producing 432,000 MW of solar energy, way higher than the hydropower potential. There is sunshine on an average of 300 days a year across the country.
