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NEA Solar Programme

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Registry record
Updated
2026-05-11

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Summary

The utility-scale grid-tied solar programme operated by Nepal Electricity Authority. Sits inside NEA as a distinct programme line that has grown from a single 25 MWp NEA-EPC plant (Bidur/Trishuli, 2022) to a ~1.1 GWp pipeline as of FY 2024/25.

Programme evolution

Phase Years Character Key output
Pre-programme 2010–2015 Isolated small pilots <1 MWp demonstration sites
Phase I — first IPP auctions 2016–2018 5-developer competitive bid 24 MWp awarded, 3 plants commissioned 2019–20
Phase II — NEA self-build 2019–2022 WB Grid Solar & EE Project 25 MWp Bidur/Trishuli commissioned 2022
Phase III — IPP rounds 2023–2024 Competitive-bid IPP PPAs 170 MWp PPAs signed (8 plants)
Phase IV — the 960 MW tender 2024–2025 National-scale IPP portfolio 960 MWp awarded (63 projects) (NEA 960 MW National Solar Tender)
Phase V (emerging) 2025– Hybrid / floating / grid-impact Reservoir floating PV, grid-impact studies, ~585 MW additional study-stage

Key Facts (FY 2024/25)

  • Operating utility-scale solar: 141.74 MWp across 25 DoED-listed plants (all grid-tied; NEA-owned + IPP-owned combined)
  • NEA-owned share: ~24.36 MWp (Bidur/Trishuli / Devighat blocks)
  • IPP / public-utility-owned share: ~117.38 MWp (commissioned under early IPP rounds and institutional utility plants)
  • PPA-signed, pre-COD: 170 MWp (8 plants, FY 2024/25 signings)
  • Tender-awarded, pre-PPA: 960 MWp (63 projects from 2024/25 tender)
  • Under grid-impact study, beyond 960 MW: ~585 MWp
  • Annual PV generation (FY 2024/25): ~220 GWh (CF ~18%)

Tariff structure

NEA's tariff-based competitive bidding framework for utility solar:

  • Phase I (2016–18): NPR 7.30–8.40/kWh, single-round competitive
  • Phase III (2023–24): NPR 5.94–6.50/kWh, competitive bidding with ceiling
  • Phase IV (960 MW, 2024–25): NPR 4.99–5.54/kWh, national tender with province-balanced allocation

See Solar and Hydro LCOE for the full time-series and Solar LCOE Crossover for the cross-over narrative.

Programme organizational structure

NEA's utility solar programme is scattered across several NEA directorates — a structural weakness:

  • Generation Directorate — NEA-owned plant operation (Bidur/Trishuli)
  • Project Management Directorate — tender design, PPA negotiation
  • Transmission Directorate — grid-impact studies and interconnection
  • Distribution Directorate — net-metering for rooftop
  • Engineering Services Department / NEC — EPC supervision

No single dedicated "solar cell" exists at senior-management level. The 960 MW tender exposed coordination friction across these five lines; a consolidated Renewable Energy Directorate is the obvious institutional fix.

Major utility plants under the programme

Plant Capacity (MWp) Status Owner Notes
Bidur / Trishuli 25.00 Operating (2022) NEA Bidur / Trishuli 25 MWp Solar Farm
Butwal Solar 8.50 Operating (2020) Ridi HP Development Butwal Solar (Ridi Hydropower Development, 8.5 MWp)
Mithila Solar PV 10.00 Operating (2021) Eco Power Development Mithila Solar PV Electric Project (Eco Power, 10 MWp)
Bishnu Priya Solar Farm ~0.96 Operating (2018) Surya Power Company Bishnu Priya Solar Farm (Surya Power, ~1 MWp)
Khungri solar award 50 LoI-awarded / pre-PPA Rapti Urja Pvt. Ltd. Khungri Solar Award (50 MW, Rolpa)
Karnali Solar Energy Project ~10 (pilot) Planned/implementation NEA / AEPC hybrid Karnali Solar Energy Project
960 MW tender portfolio 960 (63 projects) PPA in progress Various IPPs NEA 960 MW National Solar Tender
Other small IPP plants (~17 plants) ~90 (combined) Operating Various IPPs From Phase I + III rounds

Institutional challenges

1. Land acquisition is the new bottleneck

Phase I–III plants were small enough (0.5–25 MWp) that land was project-specific. Phase IV (960 MW) triggers the land-at-scale question that Agrivoltaics and Land addresses. NEA does not have a land-programme office; this function needs to move to a new body or to AEPC.

2. Grid integration at 1+ GW solar

The cumulative grid impact study NEA completed under Phase IV anticipates 4–6% instantaneous-penetration events by 2027 when 960 MW is partially commissioned. Forecast management, BESS requirements, and reactive-power compensation remain pre-commissioning design dependencies.

3. PPA exposure balance

NEA's PPA liability has grown to NPR 77.1B annual electricity purchase cost (see Nepal Electricity Authority (NEA)). Solar PPAs are adding ~NPR 6–8B/year to this. The single-buyer model (Nepal Power Trade Schemes) plus fixed-price solar PPAs creates a structural interest-rate-sensitive liability that needs transparent treatment.

4. Talent depth

NEA's solar engineering depth is thin; the Grid Solar & EE Project invested in training but the talent base for an additional 1 GW programme is a 3–5 year capacity-build, not a tender-cycle fix.

Limitations & Controversies

No dedicated solar directorate. The programme is scattered across five NEA directorates (Generation, Project Management, Transmission, Distribution, Engineering Services). The 960 MW tender exposed coordination friction; a consolidated Renewable Energy Directorate does not yet exist.

Land acquisition at scale untested. Phase IV (960 MW) triggers land-at-scale questions that NEA has no office to answer. Fee-simple purchase in the Terai is politically contentious; agrivoltaic lease templates are not yet in tender documents.

Grid integration at 1+ GW untested. The cumulative grid impact study anticipates 4–6% instantaneous-penetration events by 2027. Forecast management, BESS requirements, and reactive-power compensation remain pre-commissioning design dependencies.

PPA liability exposure growing. Solar PPAs add ~NPR 6–8B/year to NEA's NPR 77.1B annual electricity purchase cost. The single-buyer model plus fixed-price solar PPAs creates a structural interest-rate-sensitive liability.

Talent depth gap. NEA's solar engineering capacity is thin for a 1 GW+ programme. The Grid Solar & EE Project invested in training, but the talent base for portfolio-scale solar is a 3–5 year build, not a tender-cycle fix.

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