KATHMANDU: The Nepal Electricity Authority (NEA) has initiated the process to extend the Required Commercial Operation Date (RCOD) for 218 hydropower projects that faced construction delays despite signing Power Purchase Agreements (PPAs).

Under a new policy endorsed by the NEA Board of Directors on July 16, projects are classified into four distinct categories (A, B, C, and D) based on their physical progress, fulfillment of PPA terms, and current RCOD status.

Extensions are currently being processed for projects falling under Groups ‘A’ and ‘B’. Group ‘A’ includes 150 projects (4,491 MW) with active RCODs that have met contractual obligations, while Group ‘B’ comprises 68 projects (1,420 MW) delayed due to grid issues, force majeure, or those achieving at least 25% physical progress.

Conversely, underperforming projects in Group ‘C’ face default notices, while non-compliant or canceled projects in Group ‘D’ risk PPA termination.

Addressing power developers on Wednesday, Minister for Energy, Water Resources, and Irrigation Biraj Bhakta Shrestha assured that the government aims to facilitate ongoing projects rather than create obstacles for the private sector.

Currently, 320 hydropower projects totaling 8,292 MW remain under construction across the country.