Kathmandu. Nepal Electricity Authority is preparing to sign power purchase agreements for more than half a dozen large hydropower and solar projects with government investment. Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, has directed to expedite the process immediately while discussing the report prepared on PPAs.
According to the Ministry of Energy, PPAs are being prepared to be moved forward in two phases. The ministry has stated that in the first phase, PPAs will be signed for government-invested projects, and in the second phase, for private sector projects.
In the first phase, the Ministry of Energy has informed that PPAs will be signed for hydropower projects including Chainpur Seti, Betan Karnali, Kimathanka Arun, Simbuwa, Jagdulla ‘A’, and one solar project. Among the projects for which PPAs are being prepared is the 210 MW Chainpur Seti.
This project, which is being constructed by a subsidiary company of the Electricity Authority, is considered a game-changer project for the Sudurpaschim Province. The estimated cost of this semi-reservoir project is around 45 billion rupees, and it is targeted to be completed within the next 4 years.
Similarly, there is also the 439 MW Betan Karnali. This project, being built with investment from the Employees Provident Fund, is being promoted by Betan Karnali Sanchaykarta Hydropower Company Limited. The total cost of this project, to be constructed on the Karnali River at the border of Surkhet and Achham, is estimated to be around 93.40 billion rupees.
Similarly, the cost of the Kimathanka Arun (semi-reservoir) project in Bhotkhola Rural Municipality of Sankhuwasabha, promoted by the state-owned electricity production company, is 97.94 billion rupees. A financial modality has been decided to raise 70% (68.55 billion) from loans and 30% (29.38 billion) from equity.
The loan component will include co-financing from HIDCL, Employees Provident Fund, Citizen Investment Trust, Social Security Fund, and others. Shares will be issued to founders, Nepalis in foreign employment, locals, and the general public for equity.
PPAs will also be signed for the 120 MW Jagdulla ‘A’ project. The detailed study for this project, located in the Mudkechula of Dolpa and the Nalgad Municipality of Jajarkot, has already been completed.
The Jagdulla Hydropower Project will generate electricity by channeling the water released from its tailrace directly through a 7.1 km tunnel to the power house at Triveni. Since it is a cascade project, a separate headworks will not be required. This 6-hour peaking capacity project has a timeline of one year for preparation and 4 years for construction. It will produce 615.32 GWh of energy annually.
30 MW Solar Project Also Undergoing PPA
Along with hydropower, the state-owned electricity production company is also moving forward with the 30 MW Dullu-Malika Solar Project in Dullu Municipality-13, Dailekh. The estimated cost of this project, to be built on a 600 ropani land leased from a school, is around 1.80 billion rupees.
NEA Engineering Company has been awarded the contract for DPR and preliminary environmental impact assessment study. The electricity produced from the project will be connected to the Krupra substation of the Electricity Authority through a 5.5 km long 132 kV transmission line. It will produce 47.575 GWh of energy annually.
According to the Ministry of Energy, after the PPAs for these large government-owned and invested projects are finalized, the government is preparing to sign PPAs for hydropower projects to be constructed by private sector promoters in the second phase.
Ratopati
