General government authorisation

What government authorisations must investors or owners obtain prior to constructing or directly or indirectly transferring or acquiring a renewable energy project?

Project licences (survey licence for generation of power, survey licence for transmission of power), generation licences or construction licences for the transmission of power are the main authorisations required for investors.

Offtake arrangements

What type of offtake arrangements are available and typically used for utility-scale renewables projects?

The NEA is currently the only utility-scale offtaker in Nepal.

Procurement of offtaker agreements

How are long-term power purchase agreements procured by the offtakers in your jurisdiction? Are they the subject of feed-in tariffs, the subject of multi-project competitive tenders, or are they typically developed through the submission of unsolicited tenders?

The tariff that is payable by the NEA under power purchase agreements is established as a feed-in tariff for all projects with a capacity of less than 100MW. For projects over 100MW, the NEA procures powerpurchase agreements through direct negotiations. The NEA has determined that it will not pay rates that will result in a projected equity internal rate of return in excess of 17 per cent.

Operational authorisation

What government authorisations are required to operate a renewable energy project and sell electricity from renewable energy projects?

The obtaining of the aforementioned licences is all that is required.


Are there legal requirements for the decommissioning of renewable energy projects? Must these requirements be funded by a sinking fund or through other credit enhancements during the operational phase of a renewable energy project?

There is no provision for the decommissioning of projects. This is an outgrowth of the extremely long expected lifetime for hydroelectric projects.