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Govn Increases Quota For RoR Hydro Projects

Government has increased quota of hydropower projects running on Run-of-the-River system.

Now, 45% of total 15000mw electricity, will be produced from ror system as per Tuesday’s ministerial cabinet meeting. Out of 5250mw electricity to be generated from ror system, projects have already obtained Power Purchase Agreement(PPA) for 3750mw. The quota for remaining 1500mw will be available now.

The 10% added in ror system, however, has reduced storage based hydropower’s share to 25% from existing 35%. Now only 3750 mw electricity will be generated from storage based hydropower projects. Similarly 30% quota of peaking projects will remain as it is.

Government has forwarded ambitious goal to produce 15000 MWs of electricity in next 10 years. Out of total 15000 mw, projects with capacity of 1825mw are already in construction phase, projects with capacity of 2141mw are waiting for PPA and projects with 7200mw capacity have give application along with PPA proposal to concerned authority.

The decrease of quota in storage based projects came in surprise as government earlier announced to focus on such projects. As run of the river system projects cannot run on total capacity during dry seasons, this has resulted in Nepal’s compulsion to import electricity from India.

As RoR projects are cheaper to build, private ventures are more attracted to build such projects, which might be the leading factor to government’s decision of increasing RoR projects’ quota.

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