January 11, 2021 | Investopaper
Nepal’s largest solar power project so far is in the process of development in Jhapa. Jhapa Energy Limited, which was established two years ago with an ambitious plan to generate 10 MW of solar power, has purchased 22 bighas of land to install solar panels. Lal Bahadur Sawa, chairman of the company and past federal MP, said that the land was purchased at the rate of Rs. 20 lakhs per bigha.
The company has set the target to start commercial production by Poush end, 2078 BS. The electricity generated from here will be sold to Nepal Electricity Authority at the rate of Rs. 7.30 per unit.
The project expects to generate 1.76 crore units of electricity annually. Hence, the total projected revenue in a year amounts to Rs 12.85 crores by selling the electricity. The company states to complete the signing the power purchase agreement within the end of Magh this year.
The total cost of the project is estimated to be Rs 79 crores. Out of the total cost, Rs 60 crores will be financed through bank loan and the remaining Rs 19 crores through equity. The company has appealed to the investors who are willing to invest any amount above Rs one lakh.
Jhapa Energy Company was set up after seeing the good potential of solar energy production in Jhapa and the successful operation of its big projects abroad.