INTRODUCTION

Legal contract between Electricity Generator (AEHPL) & Power Purchaser (NEA).

Play a key role in the Financing of Independently Owned Electricity Generating Assets.

The Buyer will Typically Require the Seller to Guarantee that the Project will Meet Certain
Performance Standards. Performance Guarantees let the Buyer Plan accordingly when
D l i N
Developing
New FFacilities
iliti or when
h trying
t i tto Meet
M t Demand
D
d Schedules
S h d l

Electricity Rates are Agreed Upon as the Basis for a PPA. Prices may be Flat, Escalate over
time, or be Negotiated in any other way as long as both Parties Agree to the Negotiation

The PPA also describes how Invoices are Prepared and the Time Period of Response to
those Invoices

Before the Seller can Sell Electricity to the Buyer, the Project must be Fully Tested and
Commissioned to Ensure Reliability and Comply with Established Commercial Practices.

Required documents while applying for PPA

1. Survey Generation License
2 Company
2.
C
R i
Registered
d Certificate
C ifi
3. Memorandum of Association & Article of Association
4 Permanent Account Number (PAN) of Company
4.
5. Water Utilization Agreement Paper with the Concerned VDCs.
6. Financial Commitment Letter of Intent
7. EIA Terms of Reference (ToR)
8. Letter from National Conservation Area.
9. Power Evacuation Agreement
A temporary registration number is provided upon registering for PPA.
If allll the
h d
documents submitted
b i d are ffound
d to bbe V
Valid
lid than
h the
h process off PPA will
ill commence
ahead.
A separate committee will be form to investigate upon the Technical and Financial aspect of the
project.
j t
A permanent registered number will be provided upon payment of certain fee and than the
actual process will commence.

Stages for PPA

Four Stages
1.

Document Review and Investigation

2.

Technical Study & Review

3.

Connection Agreement

4
4.

Preparation of Draft for Power Purchase Agreement

Stage 1

Document Review and Investigation

Investigation
g
on the Submitted Document for their Validation.

Total Time for this Investigation is 7 days.

Stage 2

Technical Study & Review

Detail review of the Technical Aspect

p
of the Project
j
is done from the concern Experts
p
of
the Committee.

Technical Study and Review of Conceptual Layout & Design, Geological Study, EIA Study,
Electrical Layouts & Cost Evaluation is done.

Feedback for Improvement in any study/documents is notified to the Developer.

The Following Items is Finalize in this Stage

Hydrological Parameters

Electrical Details

Power Energy

Total Time for this Stage is 45 days.

Stage 3

Connection Agreement

Connection agreement with NEA have to be finalize before PPA

Impact Study (Load flow & Stability Study) is carried out to Indentify the effects to NEA
grid due to the connection.

Following Studies are carried out in this Phase:

Familiarization with Project

Data Analysis

Scheme Study

U d ti NEA Model
Updating
M d l

Modeling

Load flow Study

Contingency Analysis

Short Circuit Analysis

C
Connection
ti A
Agreementt iis d
done/not
/ td
done on the
th outcome
t
basis
b i off the
th above
b
study
t d

Total Time for this Stage is 70 days.

Stage 4

Preparation of Draft for Power Purchase Agreement

Expert from different Department of NEA will prepare the Draft PPA on the basis of:

All the Documents and Connection Agreement

Technical Report prepared by Technical Committee

PPA Draft is Prepared

Negotiation for PPA rate is Finalized

Agreed PPA is than forwarded to Management for Approval

Management Approval

PPA Sign
g

PPA START

Flow Chart

A li ti
Application
ffor PPA
with Relevant/Valid Documents

Committee Formation for PPA

Check for Validity

off Document
D
t

NO

Submitt Additional
Documents

YES

Permanent Registration Number

PPA Stage 1:
Document Review & Investigation

PPA Stage 2:
Technical Study & Review

Feedback for
Improvement
in any study/documents

PPA Stage 3:
Connection Agreement

PPA Stage 4:
Preparation of Draft PPA

PPA Sign

Apply for Generation License

PPA Schedule

TOTAL 99
DAYS