Kathmandu, Nepal Electricity Authority (NEA) has signed a power purchase agreement (PPA) for the 37.7 MW Isuwa Khola Cascade Semi-Reservoir (PROR) Hydropower Project to be constructed in Sankhuwasabha. The PPA was signed between NEA and the promoter of the project, Isuwa Energy Pvt. Ltd.
The agreement has been signed by NEA’s Executive Director Hitendra Dev Shakya and Chairman of the company Bikram Bista. According to the PPA, NEA will purchase the electricity generated from the project at Rs 8.40 per unit in winter and Rs 4.80 per unit in rainy season.
Even though Isuwa is a semi-reservoir project, it has the same PPA as the run of river project, said Prabal Adhikari, director of NEA’s electricity trade department. The project will get escalation in PPA at the rate of 3 percent per annum for 8 years.
The project is a 97.2 MW Isuwa river cascade project. Chairman Bista said that discussions are underway with some banks to raise investment in the project and the process of obtaining production license has also been taken forward.
The project is estimated to cost around Rs. 130 million per megawatt and the target is to generate electricity from April 12, 2024. The power generated by the project will be connected to Sheetalpati substation 15 kilometers away from the power house. The project will generate 6.1 gigawatts of electricity annually.