ppa process presentation

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Legal contract between Electricity Generator (AEHPL) & Power Pur chaser (NEA). INTRODUCTION Play a k ey 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 eve op ng ew ac es or w en ry ng o ee eman c e ues 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 Electricit to the Bu er the Pro ect must be Full T ested and  Commissioned to Ensure Reliability and Comply with Established Commercial Practices.

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Page 1: PPA Process Presentation

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

INTRODUCTION

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

eve op ng ew ac es or w en ry ng o ee eman c e u es

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 Electricit to the Bu er the Pro ect must be Full Tested and 

Commissioned to Ensure Reliability and Comply with Established Commercial Practices.

Page 2: PPA Process Presentation

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1. Survey Generation License

Required documents while applying for PPA

. ompany eg stere ert cate

3. Memorandum of Association & Article of Association

.

5. Water Utilization Agreement Paper with the Concerned VDC’s.

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.

 a t e ocuments su m tte are oun to e a t an t e process o w commence

ahead.

A separate committee will be form to investigate upon the Technical and Financial aspect of the

pro ec .

A permanent registered number will be provided upon payment of certain fee and than the

actual process will commence.

Page 3: PPA Process Presentation

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Four Stages

Stages for PPA

1. Document Review and Investigation

2. Technical Study & Review

3. Connection Agreement

.

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Investi ation on the Submitted Document for their Validation.

Stage 1 Document Review and Investigation

Total Time for this Investigation is 7 days.

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Detail review of the Technical Aspect of the Project is done from the concern Experts of

Stage 2 Technical Study & Review

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.

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Connection agreement with NEA have to be finalize before PPA

Stage 3 Connection Agreement

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

• p a ng o e

• Modeling

• Load flow Study

• Contingency Analysis

• Short Circuit Analysis

onnec on greemen s one no one on e ou come as s o e a ove s u y

Total Time for this Stage is 70 days.

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

Stage 4 Preparation of Draft for Power Purchase Agreement

All the Documents and Connection Agreement

 

PPA Draft is Prepared

Negotiation for PPA rate is Finalized

Agreed PPA is than forwarded to Management for Approval

Management Approval

PPA Si n

Page 8: PPA Process Presentation

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PPA START

Flow Chartpp ca on or

with Relevant/Valid Documents

Committee Formation for PPA

Submitt AdditionalCheck for Validity NO

o ocumen

YES

Permanent Registration Number 

PPA Stage 1:

Document Review & Investigation

PPA Stage 2:

Technical Study & Review

PPA Stage 3:

Connection Agreement

PPA Stage 4:

Preparation of Draft PPAFeedback for

Improvement

 in any study/documents

PPA Sign

 Apply for Generation License

Page 9: PPA Process Presentation

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PPA Schedule

TOTAL 99

DAYS

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