The Nepal Electricity Authority (NEA) has extended the Required Commercial Operation Date (RCOD) of 27 hydropower projects with a combined capacity of 540.47 MW, providing additional time to developers whose projects are making genuine construction progress.
The extension follows an NEA assessment of projects that had signed Power Purchase Agreements (PPAs) but failed to complete construction within their original deadlines. Energy entrepreneurs have long sought such extensions, arguing that developers making genuine efforts should be given additional time while inactive projects should face action.
The NEA has introduced a new classification system based on physical progress, RCOD status and compliance with PPA obligations to make project management more transparent and accountable.
Under the system, projects are divided into four groups. Group A includes projects whose deadlines have not expired and that have fulfilled key requirements such as obtaining production licenses, arranging financing and managing land.
Group B covers projects delayed mainly due to NEA transmission lines or substations, as well as projects with expired deadlines but more than 25 percent physical progress. These projects will be closely monitored.
Group C includes projects that failed to meet major obligations, such as obtaining licenses or arranging financing, or recorded less than 25 percent physical progress by the deadline. Group D consists of projects that have failed to fulfill obligations or whose survey or production licenses have been cancelled after their deadlines expired.
The NEA said RCOD extensions are being processed for Group A and B projects that have submitted the required documents and evidence.
Currently, 320 hydropower projects with a combined capacity of 8,292 MW are at various stages of construction. Of these, 150 projects totaling 4,491 MW are in Group A, while 68 projects totaling 1,420 MW are in Group B.
Meanwhile, 30 projects with a combined capacity of around 1,292 MW have already applied for deadline extensions, with their construction progress ranging from 4 percent to full completion.
Private-sector energy producers have welcomed the RCOD extension process, saying it could facilitate projects that are making genuine progress toward completion and connection to the national grid.
