NEA BOARD DECISIONS ON THE POWER PURCHASE RATES
AND ASSOCIATED RULES FOR PPA OF ROR/PROR/STORAGE
PROJECTS EFFECTIVE FROM 2074/01/14 (April 27, 2017)

1. Rated capacity of hydropower projects to be eligible for local currency PPA =

any
capacity

2. Rated capacity of hydropower projects to be eligible for foreign currency PPA
= above 100
MW

3. Maximum power purchase rate for energy = NEA's rate decided for ROR
/PROR/Storage
projects

ROR (Posted rate with 3% simple escalations for 8 years for the capacity
up to 100 MW and the base rate to be lowered for projects above 100 MW
with ROE higher than 17 %)

Season Rate Rs/KWh। Min. Dry season
(upto 100 MW) Energy required
project)
1 (Dry and wet} Wet

season 6 months (Jestha 16 - Mangsir 15)
each)

Dry
(Mangsir 16- Jestha 15)

2 (Dry and wet) Wet

season months 4 (Baisakh- Mangsir )
and 8

respectively) Dry

(Poush- Chaitra)

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PROR (Posted rate with 3% simple escalations for 8 years for the capacity
up to 100 MW and the base rate to be lowered for projects above 100 MW
with ROE higher than 17 %)

Season Time of Day। Daily hours; Rate Rs./KWh। Min. Dry
required to season
generate at Energy

rated required
capacity

Dry Peak hours 1 hr to less 8.50 30 %
(Mangsir 16- than 2 hrs
Jestha 15) 2 hrs to less
than 3 hrs
3 hrs to less 9.40
than 4 hrs

4 hrs to 6 hrs 10.55

Non-peak hours 8.40

Wet (Jestha All hours 4.80
16- Mangsir 15)

1.6. for PRoR projects, dry season tariff is NRs. 8.5, NRs. 8.8, NRs. 9.4, NRs. 10.55 for peaking hour of 1 to less
than 2 hours, 2 to less than 3 hours, 3 to less than 4 hours and 4 to 6 hours respectively
and for wet season, tariff is NRs. 4.8.

STORAGE (3% simple escalations for 8 years and base rate to be lowered
for projects of any rated capacity with ROE higher than 17 %)

Rate Rs/K Wh Min. Dry season Energy
required

Dry
(Mangsir 16- Jestha 15)

Wet 7.10 (If wet season

(Jestha 16- Mangsir 15) enersy is more than
50%, this rate shall be
decreased by the excess

४0)

4. If dry season energy is less than 35% of annual energy, a storage project
shall be considered as a PROR project for applying the power purchase rate.

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10.

11.

Flat power purchase rate ( example for less than 50% wet season energy : Dry
season energy % *12.40 + Wet season energy % *7.10) shall be applicable for
multipurpose storage projects.

The active storage volume of a storage project should not be less than the
volume corresponding to the design discharge of 15 days and the dead storage
volume should be designed not to be filled up by sediments for at least 50
years.

A PROR project must be capable of providing daily peaking power at rated
capacity for minimum। hour to 6 hours at one time.

Despite any hours of daily peaking mentioned in PPA, power purchase rate for
a PROR project in the dry season for the peaking energy shall be as per actual
as approved once a year by the system operator after the project 15
commissioned.

If the energy supplied in dry season is found to be less than 30% after the
ROR/PROR project comes into operation despite mentioning 30 % or more dry
season energy in PPA, the annual energy supplied more than the estimated
annual energy based on 30% energy in dry season shall be adjusted as a
compensation in the monthly bill payment in the next year.

Example: Suppose, annual contract energy (X) = 100 GWh
Min. dry season energy required to be supplied = 0.3X
Suppose, dry season energy supplied in a year (y) = 29 GWh

Total estimated annual energy based on 30% dry season energy = y/0.3 =96.67
GWh

Amount to be adjusted as a compensation =(Total energy supplied in a year —
Total annual estimated energy based on 30% dry season energy)* Power
purchase rate in the wet season of the relevant year

However, if the developer has paid the penalty on account of not meeting the
energy as per the monthly availability declaration in a fiscal year, the only one
which is higher out of the above compensation amount or the penalty in a year
on account of not meeting the availability declaration shall be applicable.

The new rates and the associated rules shall be applicable only to the projects
to be concluded from Baisakh 14, 2074 onwards.

For foreign currency denominated PPA, NEA Board has approved the
guidelines based on the above rates and associated terms and conditions.

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