Hydropower Investment through Online Starts

January 10: Investors willing to invest in hydropower projects now can invest through online by filling up commitment letter including amount to be invested. The Ministry of Energy (MoE) has started a new website www.moenonline.moen.gov.np for the purpose. Energy Minister Janardhan Sharma inaugurated the website on January 9.

The website allows interested individuals from inside or outside the country or companies can make investment commitments on lump sum or annual basis. As per the investment commitment, the amount will be invested on storage-type or picking-run-of –river (PROR) hydropower projects that can be constructed immediately.

Speaking at a press conference at the ministry, Sharma informed the portal will help investors to know about the projects that will be constructed by their investments. He further added that the profit can be obtained through the invested projects.

Minister Sharma also unveiled the Power Purchase Agreement (PPA) rate of reservoir-based and PROR hydropower projects. The highest PPA rate has been fixed at Rs 12.40 per unit. The rate has been fixed as per the recommendation of the report prepared by a committee formed under the coordination of Joint Secretary Chiranjivi Chataut. As per the decision, storage-type hydel projects will get Rs 12.40 per unit in the dry season (January to May). Similarly, such rate will be Rs 7.10 per unit in the wet season (May to December).Meanwhile, for PROR projects will get Rs 10.55 per unit in the dry season and Rs 4.80 per unit in the dry season. 

“The fixed PPA rate will be implemented till the completion of projects to produce10, 000MW power,” informed Sharma. According to him, after the target of 10,000MW is achieved, the rate will be revised. As per the unveiled rate, the investors interested to invest in storage-type hydel projects will get 17 percent of profit.