NEA signs PPA with Tanahun Hydro

Kathmandu, June 29: Nepal Electricity Authority (NEA) Friday signed a Power Purchase Agreement (PPA) with Tanahun Hydropower Limited (THL) for its 140-megawatt capacity project.

Executive Director of the NEA Kulman Ghishing and Managing Director of THL Pradip Kumar Thike signed the agreement on behalf of their respective organisations.

The agreement will remain effective for 30 years from the commercial operation date of the project or generation license – applies to the shorter period between the two.

According to the company, the project will start its commercial operation from April 12, 2024.

The NEA will buy energy from the THL at Rs. 12.40 per unit and Rs. 6.08 per unit during the dry and wet season respectively. The project will generate 178.9 million unit energy during the dry season and 323.6 million unit during the wet season.

“There can be 3 per cent increment to the purchase rate for maximum eight times. The NEA will buy additional energy produced by the project at half of the PPA price,” said the company.

Energy produced by the project will be hooked to the Damauli-Bharatpur 220 KV transmission line.

The company is in the process to conclude the procurement process for the construction of the main structure which will start from November this year and will be completed within five years.

The total cost of the project is 505 million US dollars.  The Asian Development Bank will invest 150 million dollars, Japan International Cooperation Agency 184 million dollars, European Investment Bank 85 million dollars and Nepal government/NEA 87 million dollars.

Published in The Rising Nepal on 30 June 2018.