Nepal Hydropower Hub

Comprehensive Insights from Registration to Asset Nationalization

2238 MW

Peak Demand

14.80 NPR

Winter Tariff

1:10

Tree Planting

30-35 Yrs

License Term

2238 MW

Peak Demand

14.80 NPR

Winter Tariff

1:10

Tree Planting

30-35 Yrs

License Term

Project Development Lifecycle

1

Company Registration

Register at CRO, DOI, and Tax Office. FDI approval needed if foreign.

2

Survey License

Issued via DoED/MoE; valid for max 5 years for feasibility studies.

3

Feasibility & Enviro

IEE for projects <50MW; EIA for >50MW. Approved by MoE/MoFE.

4

PPA Execution

Agreement with NEA. Requires technical feasibility and bank LOI.

5

Additional Approvals

Forestry, National Parks, and Road Dept clearances as applicable.

6

Financial Closure

Submission of cost data and debt-equity ratio (usually 70:30).

7

Generation License

Issued for 30-35 years (Max 50). Start of construction.

8

Construction

Implementation phase following DoED standards and O&M safety rules.

9

Operation

Power generation and royalty management via DoED system.

10

Handover

Assets revert to GON for free after license expiry (Right of Reversion).

NEA Power Purchase Rates

Effective from 2074/01/14 (April 27, 2017). 3% simple annual escalation applies for 8 years for projects up to 100 MW.

ROR Rates (Up to 100 MW)

Project TypeSeasonRate (Rs./KWh)Min. Dry Energy Required
RORWet (Jestha 16 - Mangsir 15)4.8030%
RORDry (Mangsir 16 - Jestha 15)8.40
RORWet (Baisakh - Mangsir)4.8015%
RORDry (Poush - Chaitra)8.40

PROR Dry Peak Hour Tiers (Up to 100 MW)

Project TypeSeasonTime of the dayDaily hoursRate (Rs./KWh)Min. Dry Energy Required
PRORDry (Mangsir 16 - Jestha 15)Peak hours 1 to <2 Peak Hours8.5030%
PROR2 to <3 Peak Hours8.80
PROR3 to <4 Peak Hours9.40
PROR4 to 6 Peak Hours10.55
PRORNon-peak hours 4.80
PROR Wet (Jestha 16 - Mangsir 15)All hours 4.80

Storage Project Rates

SeasonRate (Rs./KWh)Min. Dry Energy Required
Dry (Mangsir 16 - Jestha 15)12.4035%
Wet (Jestha 16 - Mangsir 15)7.10*

*If wet season energy > 50%, rate decreases by the excess %. If dry energy < 35%, considered as PROR.

Legal & Environmental Compliance

Hydropower Classifications

CategoryCapacityRegulatory Oversight
Micro Hydro< 1 MWLocal Government / Ward Office
Small Hydro1 - 10 MWDoED (Small-scale prioritization)
Massive Hydro> 10 MWDepartment of Electricity Development (DoED)
Mega Projects> 500 MWInvestment Board of Nepal (IBN)

Forest & Land Acquisition

Expert Technical Manuals

Construction & Site

  • Explosive Quantity for Tunneling (2025)
  • PowerHouse Design Guidelines (2018)
  • Grid Code for Transmission

Feasibility & Study

  • Guidelines for Study of Hydropower (2018)
  • EIA/IEE Reporting Standards
  • Standard Progress Update Formats

Financial & Legal

  • Electricity Act 2049 (1992)
  • ERC Directives on Right Share Issues
  • Foreign Currency PPA Guidelines (>100 MW)