The Department of Electricity Development has revised the 'Procedure for Grid-Connected Alternative Electricity Development, 2078' to promote energy diversification and attract investment. Director General of the department Navinraj Singh stated that the amendment aligns with the Electricity Regulations, 2054 BS, aiming to simplify and enhance the transparency of integrating alternative electricity projects and their transmission lines into the national grid.

Initially implemented on April 26, 2021, the procedure mandates that promoters of alternative electricity projects up to one megawatt must secure an electricity generation permit before applying to the Nepal Electricity Authority (NEA) for grid connection. However, obtaining a generation permit is not required for domestic solar energy systems utilizing 'net metering'.

Promoters are responsible for arranging essential infrastructure, including land, access roads, and transmission lines up to the connection point. For projects involving government land, the procedure facilitates coordination among federal, provincial, and local authorities as needed.

For solar power projects exceeding one megawatt, promoters must submit applications in the prescribed format for electrical surveys and construction. These applications should include a recommendation from the relevant ward or local authority endorsing the project site, and if the area falls within parks or reserves, a recommendation from the Ministry of Forests and Environment is required.

The procedure outlines that electricity purchase rates will consider factors such as project costs, loan interest rates, depreciation, return on investment, operational and maintenance expenses, taxes, capital structure, equipment costs, and battery storage capacity.

The NEA is advancing plans to develop approximately 1,000 megawatts of solar power to meet winter energy demands and has invited private sector proposals for power purchase agreements through competitive bidding. Recent clarifications in the procedure address previous ambiguities regarding recommendations for land suitability assessments for project surveys.

The amendment paves the way for the progression of solar energy projects. Currently, 33 solar projects with a combined capacity of 704 MW have received survey permits, and 35 projects totaling 717 MW have pending survey applications. Additionally, nine projects (77 MW) have obtained construction permits, with another 10 projects (59.6 MW) awaiting approval.

Presently, 21 projects with a total capacity of 106.7 MW are operational, including the NEA's 25 MW solar energy project in Nuwakot, which stands as the largest in the country. -- RSS