Indian company NTPC Limited (National Thermal Power Corporation) has expressed interest in investing in solar projects in Nepal.

The company has shown interest in investing in a solar project of up to 100 megawatts in joint collaboration with the Electricity Generation Company. “We received information that NTPC is interested in investing. Following that, we have requested a formal proposal,” said a senior official from the Electricity Generation Company. “We will first hold discussions with the Ministry of Energy. A decision will be made after that.”

NTPC has been seeking to invest in Nepal’s hydropower sector for a long time. However, it has not been able to do so due to the lack of government approval. In the past, the company had also expressed its interest during international investment summits held in Nepal.

According to sources, a 30 MW project has been identified in Dailekh. If some forest land can be acquired, the project could generate up to 60 MW. Discussions will be held between the two sides regarding investment in this project. “We have identified a solar project in Dailekh. The electricity produced from it would also be useful for the petroleum exploration project planned in the area,” the source said. “The Nepal Electricity Authority has expressed its commitment to facilitate the PPA (Power Purchase Agreement).”

The Electricity Generation Company was established with the aim of developing large-scale hydropower projects. However, due to the inability to secure immediate investment for such large projects, the company has now decided to move forward with solar projects.

However, the Nepal Electricity Authority has a provision that PPAs (Power Purchase Agreements) for solar projects can only be done through a competitive tender process. Because of this, the company had been unable to proceed with solar projects as well.

Now, since facilitation in the PPA process is expected due to the company’s status as a government entity, it is preparing to move the project forward.

NTPC is the company that has already developed power projects with a total installed capacity of 82,836 megawatts. This company is now planning to develop a battery storage solar project in Nepal.

The Electricity Generation Company has completed the study of the 480 MW semi-reservoir-based Phukot Karnali Hydropower Project. During former Prime Minister Pushpa Kamal Dahal Prachanda’s visit to India, this project was handed over to NHPC Limited. However, due to the matter being under legal dispute, no progress has been made so far.

The MoU mentions that a new company will be established to develop the project, with NHPC holding a 51% share and the Electricity Generation Company holding 49%. However, due to the ongoing legal dispute, concrete progress has not been possible. The estimated cost for constructing this project is NPR 92.03 billion.

The company has completed a detailed study of the 454 MW Kimathanka Arun project. The estimated cost is NPR 9.3 billion. However, the project has not progressed due to unresolved investment modalities.

The study of the 1902 MW Mugu Karnali reservoir-based hydropower project is ongoing.

Indian companies have shown interest in investing in this project, which is estimated to cost over NPR 400 billion. Previously, although an internal advertisement was issued to raise investment, it was halted due to disputes.

Source: Nepal Purbadhar