NEA signs pacts to purchase 45.6 MW of electricity this fiscal

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    KATHMANDU: Nepal Electricity Authority (NEA), the sole buyer of electricity in the country, aNEA_Buldinggreed to purchase 45.60 megawatts of electricity from various independent power producers of the country in the first five months of the current fiscal year.

    In the same period last fiscal, NEA had agreed to buy 165.50 MW of electricity from independent power producers, show the data provided by the utility company.

    “Although the number of projects with which we signed power purchase agreements (PPAs) this fiscal was higher, their total installed capacity was lower than that of last year, because we haven’t been able to rope in projects with installed capacity of more than 25 MW. This is the result of lack of tariff guideline for projects of over 25 MW,” said NEA Director Hitendra Dev Shakya.

    NEA currently purchases electricity from projects with installed capacity of up to 25 MW at a flat rate of Rs 8.40 per unit during winter and Rs 4.80 per unit during summer. Electricity purchase price for projects bigger than 25 MW is determined through negotiations.

    “We are planning to introduce new tariff structure for projects of up to 100 MW. As soon as we come up with that policy guideline, we will sign pacts with projects with total installed capacity of over 200 MW,” Shakya said.

    Of the PPAs signed by NEA this fiscal, the largest deal was signed with Mountain Hydro Nepal, which is building 21.60 MW Tallo Hewa Khola Project in Panchthar district.

    The second largest deal signed by NEA this fiscal was with Dordi-I Hydropower Company, the developer of 10.3 MW Dordi Khola project in Lamjung district. This was followed by an agreement signed with Bidhyabasini Hydropower Development Company, which is building 6.6 MW Rudhi Khola B Project in Lamjung.

    Among others, PPA on 5 MW Phalanku Khola Project based in Rasuwa district was signed with Rasuwa Hydropower Pvt Ltd, 950 KW Tauthali Khola Project located at Sindhupalchowk district was signed with Shakti Urja Bikash Company, 750 KW Ludi Khola Project situated at Gorkha district was signed with Ludi Hydropower Development Company and 400 KW Sunkoshi (Tocardo Technology) Project based at Ramechhap district was signed with Ashmita Hydropower, show NEA data.

    With the signing of these agreements, NEA has entered into PPAs for generation of 2.01 GW of electricity with different independent power producers. Of this, 39 projects with installed capacity of 260.10 MW have already come into operation, while 110 projects have pledged to produce 1.75 GW of electricity at various dates.

    Of the projects currently being developed by independent power producers, the biggest is Upper Tamakoshi Hydropower Project, which has installed capacity of 456 MW. The national pride project, which has 41 per cent stake of NEA and is wholly financed by domestic financial institutions and companies, is expected to come into operation in 2016.

    Another big project currently under construction is 111 MW Rasuwagadi, which is being developed by Chilime Hydropower Company in Rasuwa, while Sindhupalchowk-based 102 MW Middle Bhotekoshi Project is the third largest project being developed so far. Both the projects had signed PPAs with NEA on November 14, 2011, show NEA data.

    Source : The Himalayan Times