September 15, 2023 | Investopaper
Sangrila Hydropower Pvt Ltd and the Nepal Electricity Authority have inked a Power Purchase Agreement (PPA) for the 20.73 MW Jaldigad hydropower project.
The Power Purchase and Sale Agreement (PPA) follows a “take and pay” model, encompassing a six-month agreement for both the dry and rainy seasons. Under the terms of the agreement, the Nepal Electricity Authority has committed to purchasing the electricity generated by the Jaldigad hydropower project at a rate of Rs. 8.40 per unit during the dry months and Rs. 4.80 per unit during the rainy season.
Khagendra Neupane, Chairman of Sangrila Hydropower Pvt. Ltd., and Pradeep Kumar Thike, Deputy Executive Director of the Nepal Electricity Authority inked the agreement.
The company has already obtained the construction license of the project from the Department of Electricity Development. The department issued the license on Bhadra 1, 2079 BS. The construction license has a validity until Shrawan 30, 2114 BS.
According to the Department of Electricity Development, the construction license has been given to the promoter company on the basis of the environmental impact assessment report and study report of the project approved by the Ministry of Forest and Environment.
The estimated cost for the construction of the Jaldigad hydropower project is projected to be Rs. 4 billion.
The project is expected to generate a 127.29 gigawatt hours of electricity annually.
Situated in Ward No. 3 and 4 of Rukum West’s Aathbiskot Municipality, the Jaldigad hydropower project is a a run-of-river type project strategically located along the Jalligad River.