ERC has recently released a draft regarding open access. Experts have long demanded that the private sector be allowed to use the transmission line by paying certain fees. So, this draft is a positive step forward. In this article, I try to calculate how much an open access user has to pay if we export 10 MW.
Introduction
In recent timess, there has been significant buzz surrounding battery storage for solar power projects in Nepal. Some industry observers believe the recent introduction of the “take and pay” mechanism for Run-of-River (RoR) hydropower projects is part of a broader shift aimed at prioritizing solar power coupled with battery storage. This prompted me to analyze how battery-backed solar stacks up against traditional RoR hydro and peaking RoR projects in terms of energy supply during critical demand periods.
The recently announced budget has created a buzz, especially with the introduction of a "Take and Pay" Power Purchase Agreement (PPA) for run-of-river (RoR) hydropower projects. On one hand, the government has set an ambitious target of achieving 28,500 MW electricity production, but on the other, it has taken a contradictory step by formulating policies like the Take and Pay PPA. This system, where electricity is purchased only when consumed rather than through long-term contracts, has led to financial instability for power producers.
Nepal’s hydropower sector is at a critical juncture. While the government claims to prioritize storage-based hydropower projects, real progress is lacking. The recently announced budget emphasizes the importance of storage, but practical and policy-level gaps continue to undermine that objective.
Without decisive changes in regulation, planning, and pricing, Nepal risks wasting its hydropower potential — especially the opportunity to address dry-season energy shortages.
