NEA signs PPA with Kunban Khola Hydropower Project

Kathmandu, September 19

Nepal Electricity Authority (NEA) — sole power off-taker of the country — has signed a power purchase agreement (PPA) with Kunban Khola Hydropower Project (KKHP) to purchase 20 MW of electricity generated by the project.

Sushil Pokharel, executive chairman of the project, and Jagadishwor Man Singh, deputy managing director of NEA, signed the pact on behalf of their respective organisations.

According to Pokharel, the project — located in Mudi rural municipality of Myagdi district — will generate annually 115.515 gigawatt hour (GWh) — 17.553 GWh in dry season and 97.961 GWh in wet season. The generated electricity will be delivered to NEA’s proposed Dandakhet 132 kVA substation through 20-km-long transmission line. The per unit rate of electricity has been fixed at Rs 4.80 and Rs 8.40 for the wet season and dry season, respectively.

The project is estimated to be completed with the investment of Rs 3.80 billion, out of which 70 per cent will be bank loan and 30 per cent will be equity investment.

As per the rules, the project will allocate 10 per cent of the shares to the locals and 15 per cent shares will be separated for the public.

Pokharel of KKHP further stated that the construction of the project was going to be completed within four years and by early 2024, the project is expected to start commissioning power.