Kathmandu, April 24, 2025 — In a significant stride towards sustainable energy, the Nepal Electricity Authority (NEA) has awarded contracts for 960 megawatts (MW) of solar power projects. This allocation, surpassing the initial target of 800 MW, underscores Nepal’s commitment to diversifying its energy portfolio and reducing reliance on hydropower.
Expanding Solar Capacity Across the Nation
The NEA’s recent tender attracted robust participation, resulting in the selection of 64 solar projects ranging from 5 MW to 50 MW in capacity. These projects are strategically distributed across various districts, with Kapilvastu district receiving the highest allocation of eight projects totaling 95 MW. The awarded tariffs span from NPR 4.99 to NPR 5.55 per kilowatt-hour, reflecting competitive pricing in the renewable energy sector.
Key Consortiums Leading the Charge
Prominent among the successful bidders are the GEPPERT-RAPTI Consortium and the Mountain-Dordi Consortium. The GEPPERT-RAPTI Consortium secured ten projects with a combined capacity of 125 MW, while the Mountain-Dordi Consortium was awarded seven projects totaling 105 MW. These consortiums are poised to play a pivotal role in Nepal’s transition to cleaner energy sources.
Long-Term Power Purchase Agreements
Each project is backed by a 25-year power purchase agreement with the NEA, ensuring a stable and predictable revenue stream for developers. This long-term commitment is expected to attract further investment in Nepal’s renewable energy sector and facilitate the country’s goals for energy security and sustainability.
Towards a Greener Energy Mix
Nepal’s current energy generation is predominantly hydroelectric. By integrating nearly 1 gigawatt of solar capacity, the nation aims to mitigate the risks associated with hydropower dependency, such as seasonal variability and climate change impacts. This diversification is a strategic move to ensure a more resilient and balanced energy mix.
The NEA’s successful tender marks a milestone in Nepal’s renewable energy journey, signaling a proactive approach to embracing solar power and fostering sustainable development.
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