Preamble

This Work Schedule is prepared for effectively completion of the Power Purchase Agreement (PPA)
Between Nepal Electricity Authority (NEA) & Private Power Producer (PPP) up to 25 MW.

Service Fee

As applicable following service Fee have to deposit for PPA to NEA before proceeding for work.

 Up to 1 MW – 75,000/-
 1 MW to 5 MW – 1, 50,000/-
 5 MW to 10 MW – 3, 00,000/-
 10 MW to 25 MW – 4, 50,000/-
 25 MW to 50 MW – 6,00,000/-

PPA Application & Documents

With following documents, Private Power Producers should apply with following documents.

1. Survey License
2. Company Registration Certificate
3. Company Certificate of cooperation & memorandum of article
4. Permanent Account Number from Inland Revenue Department
5. No Obligation Certificate from Village Development Committees
6. Letter of Intent from Bank
7. Approved Terms of Reference for IEE or EIA
8. Approval from National Park if inside National Park.
9. Project Feasibility Study Report with Power Evacuation Study Report

Temporary registration
After submitting application with above said document; Temporary registration will be done for
verification of document.
Committee formation / Permanent registration
Only if all the required documents provided to the Power Trade Department meets the required
requirement, the committee will be formed and registration will be done permanent with asking
above service fee. And Process will be more forward for PPA

Phases for PPA

First Phase: Study of Document

It will take 7 Days to finish the study of the document submitted.

Second Phase: Techno Study & Evaluation

Experts & Committee will start the Study of the Project, Which will take 45 days to complete.

The Study consist of following :

1) Conceptual Layout and Design Study
2) Geological Study
3) Environmental Issues Study
4) Electrical Layouts Study
5) Cost and evaluation Study

After finishing above study if any comment arises from experts; developer have to give the reply to
the respective comments.

In this phase only following parameters will decided

 Hydrological Parameters
 Electrical Details
 Power and Energy

And Report will be prepared. These all will take 45 days to complete.
 Third Phase: Connection Agreement

Developer Company has to do connection Agreement with concerned department of NEA to flow
electricity in NEA Transmission Line. After the completion of Second Phase of study, Power trading
department of NEA will send request letter to System Planning department to work over Grid Impact
Study. It will take approximately 70 days of time to complete the connection agreement process and
come to power trading department. Following document will attached while requesting for
Connection agreement.

1. Salient Features
2. Power and Energy Table
3. Electrical Single Line Diagram
4. Location Map
5. Project construction Schedule
6. Power Evacuation Study Report.

*Other required documents for Grid Connection can be found in Appendix A of Grid Connection.
Concerned Department will take 60 Days to tell whether it’s possible to have connection or not to
Power trading Department in advance.

In This Phase, Grid Impact Study for Load flow from the Project to NEA Transmission Line will be
carried out with Load able to flow or not. According to NEA Grid Code, fee will be determined for
the Impact Study.Fee Structure

For Transmission
Description study carried by For Transmission Study Carried by NEA (NRs)
developer (NRs)

Impact Study with Load Flow

Year – 1 Year –2 Year – 3 Year – 4
Only

Impact Study for >=5 MW to 75,000 19,000 38,000 56,000 75,000

< 25 MW (75 %)
During Grid Impact Study,

 Familiarization with Project

 Data Analysis
 Scheme Study
 Updating NEA Model
 Modelling
 Load Flow Study
 Contingency Analysis
 Short Circuit Analysis

Will be studied and report will be prepared. Above mention report will govern the connection
agreement. If possible then only connection agreement will be done.

If it’s not possible to do the connection agreement then Developer will be informed immediately
regarding non happening of PPA.

Whatever comment or answer NEA needs for Second and Third Phase of work; it will have to be
provided by the Developer. If Developer fails to submit the comment in time, then PPA may take
longer time then what it is committed for.

Fourth Phase: PPA Draft work

Representative from Finance department, representative from Law and negotiation Department,
concerned engineer and other expert from NEA will work over Draft report of PPA. And process for
Memorandum of Understanding for interconnection must be signed before working on Power
Purchasing Agreement.

1. Review of all documents & Connection agreement

2. Study of Technical committee report
3. PPA draft preparation
4. Taking consent from developer
5. Taking approval from NEA management for Draft PPA.
Above work will take approximately 10 days. After preparation of Draft PPA, within 7 days consent
of the developer is required. And further process moves ahead for the approval from NEA
management. It will take around 7 days to get approval from the NEA management.

After the approval both party will sign the PPA. It will take approx. 5 days to complete the above
mentioned process.

It is assumed that if all the above phases goes in time; then PPA will be completed in 99 days.

Guarantee Management

As per NEA rule PPP should submit performance Guarantee before PPA. Developer have to provide
performance bank guarantee (Rs 600/kW)

Power Purchase Rate:

As Per the latest notice published from N.E.A, for the Dry season Rs. 8.40/KWh with 3% simple
escalation per annum for 8 years and for wet season Rs. 4.80/KWh with 3% simple escalation per
annum for 8 years.

PPA duration:

Duration for PPA will be 30 years from date of commissioning of Project.