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Nepal Electricity Authority has invited applications to sign power purchase agreements (PPAs) with solar power projects developed with investment from local governments.

The authority has decided to purchase electricity generated from solar projects with an installed capacity of up to 1 MW, provided that local governments hold at least a 51% stake in the project. This decision was made during the authority’s board meeting on November 5, 2025.

The purchase rate for electricity generated from such projects has been fixed at Rs. 4.99 per unit. The authority aims to complete PPAs with these projects within the current fiscal year.

According to a decision made on April 15, 2026, interested projects are invited to submit applications along with required documents by the end of this month. The solar projects will be connected to the authority’s 33/11 kV grid or distribution substations, and if necessary, connections may also be arranged through 11 kV distribution lines.

Applicants must submit documents including the company registration certificate, proof of at least 51% local government shareholding, details of promoters/directors, memorandum and articles of association, tax clearance certificate, electricity survey license, PAN registration certificate, and land ownership documents of the project site.

Additionally, applicants are required to submit a draft power purchase agreement, authorization letter for the signatory, and a detailed construction schedule of the project.

Jalasarokar