Govt finalizing PPA rate of Kaligandaki Gorge Hydropower Project

Kathmandu; The government has taken forward the process of power purchase agreement (PPA) of 180 MW Kaligandaki Gorge Hydropower Project (KGHP)

In this regard, it will be conducting a public hearing on Friday to fix the PPA rate, according to the Electricity Regulatory Commission. Nepal Electricity Authority has proposed the PPA rate at Rs 4.80 per unit at rainy season; Rs 10.55 per unit during the dry season and Rs 8.40 per unit in off-peak hours.

The KGHP will be constructed in Myagdi, Thasang of Mustang district and Annapurna Rural Municipality of Gandaki Province. The project is projected to produce electricity at the rate of 1.05 billion kilowatts per hour. It will be constructed at an estimated investment of Rs 39.74 billion.

The project construction is likely to commence in 2023 and is expected to enter into commercial operation in 2026.