Govt fixes PPA rate for hydropower generated thru reservoirs and RoR

Published On: January 9, 2017 05:11 PM NPT

Energy Minister Janardan Sharma speaking at a press conference organized at the Energy Ministry on Monday. (Dipesh Shrestha/Republica)

KATHMANDU, Jan 9: The Ministry of Energy has fixed the rate of Power Purchase Agreement (PPA) for the hydropower projects based on reservoirs and run-off-the-rivers (RoR).

The ministry has fixed PPA rate at Rs 4.80 to Rs 12.40 depending upon the nature of projects and seasons.

According to the ministry, the PPA rate has been fixed at Rs 12.40 per unit from December 1 to May 28 and Rs 7.10 from May 29 to November 30.

Similarly, the PPA rate has been fixed at Rs 4.40 from April to December 15 and Rs 8.40 from December 16 to April 12 per unit for the hydroelectricity generated through the RoR while for RoR-based peaking electricity, the PPA rate has been fixed at Rs 4.40 to 10.55.

The PPA rate is high during dry season that lasts for six months beginning December 1 to May 28 and comparatively low during rainy season starting May 29 to November 30.

Reservoir-based projects will make 17 percent profit through this PPA rate fixation, Energy Minister Janardan Sharma said at a press conference organized at the Ministry of Energy.

According to Minister Sharma, this PPA rate will remain effective until 10,000 megawatt electricity is generated. The PPA rate will be reviewed once the generation of hydroelectricity crosses the ceiling aforesaid.

Similarly, this electricity should be supplied for eight years at this PPA rate with an annual increment by 3 percent.

This PPA rate has been fixed by a committee led by Chiranjivi Chataut, joint secretary at the Ministry of Energy.

The committee has also sought suggestions and comments from the concerned stakeholders on this PPA rate, said Minister Sharma.

‘The Bright Nepal Campaign’ has been taken forward, tackling other existing challenges, said Sharman.

Saying that Kathmandu Valley, Kavre, Biratnagar, Birgunj, Pokhara, Tahanu, Baglung, Syangja have been made load-shedding free zones under this campaign, technical and other preparations are underway to make other areas load-shedding free, added Sharma.

As a part of preparation to make the country load-shedding free, a report on the demand of electricity has been prepared, a website developed to attract investment in hydro sector and the task of the Nepal Electricity Authority (NEA) divided, said Sharma.

Similarly, the compensation for the land acquired by the Budhigandagi Hydro Power Project is being distributed among the concerned people, said Sharma.