Kathmandu, December 27

Nepal Electricity Authority (NEA) has renewed the power purchase agreement (PPA) with NTPC Vidyut Vyapar Nigam (NVVN) today without any changes till next joint steering committee (JSC) meeting, which is popularly known as the energy secretary-level talks, is held.

NEA Managing Director Kul Man Ghising confirmed that the electricity supply through Dhalkebar-Muzzafarpur, which is the lifeline for NEA to manage the dry season load, will be regular this winter.

The agreement between NEA and NVVN signed last year to purchase 145 megawatts of electricity through Dhalkebar-Muzaffarpur cross-border transmission line is going to be phased out from December-end.

In the earlier agreement, NEA and NVVN had agreed to renew the PPA during the energy secretary-level talks. However, the energy secretary-level talks have been postponed for indefinite period as Nepal is in the process of getting a new government with the new electoral mandate.

The PPA rate with the NVVN had been set at INR 3.60 (Rs 5.75) per unit, which will be continued till the energysecretary-level talks take any decision. NEA has been importing round-the-clock electricity through Dhalkebar-Muzzafarpur cross-border transmission line. The rate offered by NVVN is cheaper compared to the electricity that NEA imports from the state-level power utilities.

The electricity provided by India is critical for NEA to manage load in the country as the generation from the snow-fed rivers plunges to one-third of the rated capacity during dry season.

Currently, demand of the electricity during peak hours is around 1,250 megawatts. However, NEA has capacity to supply optimum 964 megawatts. To manage the mismatch between demand and supply, NEA has been cutting power for three hours a day in industrial zones to ensure smooth and reliable supply to its domestic clients.