In a significant push towards renewable energy diversification, the Nepal Electricity Authority (NEA) has finalized power purchase agreements (PPAs) for 24 solar projects. This move will add a total of 355.15 MW of solar capacity to the national grid, with a target connection date of 2025.
Nepal solar projects: Solar Projects and PPAs
The Nepal Electricity Authority (NEA) has officially signed PPAs with private developers for 24 solar projects, marking a crucial step forward after previous delays in finalizing such agreements. These projects, which will add 355.15 MW of clean energy, are slated to be connected to the national grid by 2025, signaling renewed momentum under the NEA’s leadership to clear stalled initiatives.
As Nepal’s state-owned power utility, the NEA confirmed that these solar installations will be spread across 15 districts in six different provinces. This geographical distribution aims to enhance grid stability and energy access throughout the country.
The NEA is working to expedite the construction phase, aiming to have all 24 projects operational within the next two years. The construction of these solar farms involves a complex [solar panel manufacturing process](https://www.pvknowhow.com/solar-panel-manufacturing-process/) and requires developers to carefully manage their investment, including understanding the [solar panel manufacturing plant cost breakdown](https://www.pvknowhow.com/solar-panel-manufacturing-plant-cost-breakdown/) to ensure project viability. Managing director Kulman Ghising emphasized that private power producers have been clearly informed of the strict completion timelines.
“The PPAs have been signed at a time when the NEA is facing a challenge of increasing electricity consumption,” said Ghising. “We have insisted on the private power producers to complete the projects within the deadline.” This urgency reflects Nepal’s strategy to use solar to meet rising daytime energy demand.
Boosting Solar Capacity and Reducing Import Bill for Nepal solar projects
The approved solar projects vary in size, ranging from 2 MW to 25 MW. The distribution includes three projects in Province 1, six in Madhesh Province, three in Bagmati Province, two in Gandaki Province, five in Lumbini Province, and five in Sudurpaschim Province. The largest among them is the 25 MW Saptari Solar Power Project, while the 2 MW Dhanusha Solar Power Project is the smallest.
These projects are poised to significantly boost Nepal’s solar generation capacity. This is a strategic move to complement its vast hydropower resources, which can experience seasonal fluctuations, and to reduce the nation’s reliance on electricity imports, particularly during the dry season. By generating more power locally, the NEA aims to lower the import bill and ensure a more stable year-round power supply. The growing financial success of such ventures is already being demonstrated, as highlighted by the [impressive profit surge for Pure Energy](https://www.pvknowhow.com/news/nepal-solar-energy-impressive-profit-surge-for-pure-energy/) in its recent reports.
The electricity generated from these new solar farms will be integrated into the national grid via NEA’s substations. This includes infrastructure associated with the under-construction Budhigandaki Hydropower Project, showcasing an integrated approach to energy system planning.
Government Incentives and Future Plans for Nepal solar projects
The Government of Nepal has been actively fostering investment in renewable energy through various incentives. This policy support, combined with international aid like the recent [$20 Million for Amazing Solar Energy Boost](https://www.pvknowhow.com/news/nepal-solar-grant-20-million/) from the World Bank, is critical for developing the necessary infrastructure. By promoting solar power, Nepal is working to decrease its dependence on imported fossil fuels and ensure long-term energy security.
Looking ahead, the NEA has announced even more ambitious plans, including the development of an additional 500 MW of solar projects in partnership with the private sector. These projects will be implemented on a build-own-operate-transfer (BOOT) model and will be sited in areas with high solar potential and available land, primarily in the Terai region. To bring these large-scale installations to life, developers will need to source specific [solar panel raw materials](https://www.pvknowhow.com/solar-panel-raw-materials/) and utilize advanced [solar panel manufacturing machines](https://www.pvknowhow.com/solar-panel-manufacturing-machines/).
This initiative is a key component of Nepal’s broader strategy to reduce electricity imports and meet growing demand. It aligns with [Nepal's 10,000 MW Solar Energy Plan](https://www.pvknowhow.com/news/nepal-targets-10000mw-solar-energy-by-2035/), a long-term vision to diversify the country’s energy portfolio. With an average solar insolation of 4.5-5.5 kWh/m²/day, the country has immense untapped potential.
The NEA’s recent push is a concrete step towards the government’s target of achieving 15% renewable energy in the national mix by 2030. You can follow the latest developments in our [Nepal Solar News Archives](https://www.pvknowhow.com/category/pv-news/asia-news/nepal/).
If you are interested in the fundamentals of solar technology, from the [basics of solar panel manufacturing](https://www.pvknowhow.com/basics-of-solar-panel-manufacturing/) to project development, consider exploring our [free e-course](https://www.pvknowhow.com/free-ecourse/) to deepen your knowledge.
