RCOD extended for 27 hydropower projects, paving way for 540 MW
The Nepal Electricity Authority has extended the commercial operation date (RCOD) for 27 hydropower projects with a combined capacity of 540.47 MW in the first phase. This is expected to help accelerate project construction and expand power generation capacity.
Kathmandu. The Nepal Electricity Authority has extended the commercial operation date (RCOD) for 27 hydropower projects with a combined capacity of 540.47 MW in the first phase. The Authority extended the RCOD after assessing the actual status of projects that had signed power purchase agreements (PPAs) but failed to complete within the stipulated time.
Based on the physical progress of projects, RCOD status, and obligations to be fulfilled by promoters as per PPAs, the Authority had classified a total of 218 projects into four groups: 'A', 'B', 'C', and 'D'. Accordingly, the process of extending RCOD for projects in groups 'A' and 'B' that submitted necessary documents and evidence has been initiated.
The meeting of the Authority's Board of Directors held on Ashad 32 (July 16, 2023) decided for the first time to classify projects with clear criteria. Group 'A' includes projects that have fulfilled necessary basic obligations, while group 'B' includes projects that have achieved at least 25 percent physical progress due to delays in transmission infrastructure construction caused by the Authority, force majeure, or other circumstances.
According to the Authority, currently 320 hydropower projects with a capacity of 8,292 MW are in various stages of construction. Among them:
- Group 'A' has 150 projects with a capacity of 4,491 MW
- Group 'B' has 68 projects with a capacity of 1,420 MW
- The remaining projects are classified in groups 'C' and 'D'
Group 'C' includes projects that have not completed necessary generation licenses, financial management, or land management, and have achieved less than 25 percent physical progress by the RCOD deadline. Group 'D' includes projects that have not fulfilled mandatory obligations or whose survey and generation licenses have been revoked.
Projects in group 'B' will be regularly monitored. The Authority's Electricity Trade Department will issue necessary directives to complete projects on time and monitor their implementation. If necessary, provisions have been made to reclassify projects within a maximum of six months.