Urja Khabar
Kathmandu: Electricity produced by the 44 MW Super Madi Hydroelectric Project has been connected to the national grid since Friday night.
It is the second largest hydropower project operated by the private sector. Earlier to this, the 86 MW Solu-Dudhkoshi Hydroelectric Project constructed by Sahas Urja Limited has been identified as the biggest project from the private sector.
As a test production, Super Madi has started supplying a total of 15 MW of its produce to the national grid. According to the project, it will be supplying the aforementioned amount of electricity free of cost to the Nepal Electricity Authority (NEA) for the next 15 days before it will move to commercial production.
Pushpa Jyoti Dhungana, chairman of the project, said they have been supplying their produce to the substation located in Lekhanath Municipality via 132 kV transmission line.
Super Madi will be producing 242.65 Gwh (242.65 million units) of electricity per year. As per the power purchase agreement inked with the NEA, it will be selling its produce to the authority at the rate of Rs 8.40 per unit for four months during winter while the rate has been fixed at Rs 4.80 per unit for remaining eight months of a year. “Based on the PPA rates, the project is expected to earn Rs 1.30 billion by selling its produce,” Dhungana said.
Although a total cost of Rs 7.47 billion was earmarked for the project construction in the beginning, the cost has been projected to reach Rs 8.70 billion. Dhungana said the cost has soared mainly due to increased prices of construction materials caused by floods and the commencement of Russia-Ukraine war.
According to him, the delayed construction due to flood incurred additional liability of Rs 470 million alone in interest cost against the banks’ loan. Likewise, the project faced an additional cost of Rs 200 million due to increased prices of construction materials and costs of management.
The project is situated in ward number 1 and 2 of Madi Rural Municipality of Kaski District, about 23 km north-east of Pokhara. Its headworks is located at the foothill of Sikles village and the powerhouse is located just opposite of Sodha village.
