It looks like another company is going to pack its bag. China
Three Gorges International Corporation, the potential builder of West Seti
Hydropower Project (750 MW), showed dissatisfaction over the Power Purchase
Rate Policy proposed by Nepal Government. Storage project like West Seti is
entitled to receive NRs. 12.40 per kWh and NRs. 7.10 per kWh during dry and wet
season respectively.
Soon after the news floated in the media, some nationalists
were quick enough to blame India.
Before making any comments, let’s do a simple assessment to
find out why Chinese company decided to leave.
The energy production of West Seti Hydropower Project (750
MW) during wet and dry season are 2,485 GWh and 508 GWh respectively (source:-
Office of Investment Board). This makes annual revenue of NRs. 31.924 million
per MW which is slightly more than RoR projects (just by NRs. 1 million approx.) , and surprisingly less than Peaking RoR projects (Rates for Peaking Run of River).This explains it all, and no further
assessment is required in my opinion. Why would any investor construct a
storage project when the benefits it receives by constructing a storage project
is more or less similar to RoR projects?
Sir have you calculated the yearly income of upper tamakoshi in rough estimates??
ReplyDeleteroughly about NRs. 9.5 billion in the first year
DeleteThankTu
Delete