Oct. 6 — The 10-MW Lower Modikhola Hydropower Project based in Chuwa VDC of Parbat district came into operation on Friday. The project has been connected to the central electric transmission line for trial generation.
Project officials said the power generated from the run-of-river project will be connected to Modi Substation, some 8km away from the project site, and will be linked to the 132kv transmission line. Two separate turbines of 5MW each have been installed at the powerhouse.
Sher Singh Bhat, head of the energy trade department at Nepal Electricity Authority (NEA), the energy produced from this project will help reduce the existing load-shedding by half an hour.
The project has been developed with an investment of Rs 1.92 billion, with major investors being the private sector and local residents. The project received over 75 percent investment from eight banks.
Project officials claim Modikhola to be the largest project developed unsing local technicians, local investors and local investment. “This project has encouraged prospective private sector investors,” said Mahendra Bahadur Karki, chief executive officer of United Modi Hydro, the promoter of the project.
United Modi has signed a 30-year power purchase agreement (PPA) with the NEA, after which the latter will assume the project’s ownership. Officials said the project will start making profits after three years and the investment will be recovered within 14 years.
The project was completed in 30 months. China’s Huan Lingling Company had undertaken the electromechanical work for the project. As per the PPA, the trial production would last for 15 days.
Source : The Kathmandu Post