Hydropower

River Falls Power Limited (RFPL) is a Public limited company, incorporated on October 5, 2004 as private limited company, later on, converted to public limited company in October 2015. The company has been promoted by individual businesspersons having dynamic experience in the hydropower and other sectors for setting up Hydroelectric Project (HEP) in the territory of Nepal.

RFPL operates 10.30 MW run-of-river Down Piluwa Khola Small Hydropower Project in Sankhuwasabha district of Nepal. The project came into operations on August 10, 2023. The company is eligible for all five escalations for 9.5 MW and eight escalations for additional 0.8 MW.PLF so far during FY24. The project is in the early stage of operations; thus, the stabilization and streamlining of production in coming years remains to be seen.

RFPL had entered into a long term PPA with NEA as on February 1, 2015 for sale of 9.5MW (Amended on November 02, 2022 for 10.30 MW) power to be generated from the project. The period of PPA is 30 years from the date of commercial operation date (COD) or till validity of Generation License (obtained on February 16, 2014 for 35 years), whichever is earlier.

PPA period may be extended with mutual consensus during the last six months of validity. The tariff for wet season (Mid-April to Mid-December) is Rs 4.80 per kWh and for dry season (Mid-December to Mid-April) is Rs 8.40 per kWh with 3% escalation on base tariff for 5 times in every year after completion of 12 months from COD date. However, escalation will be for eight times in case of additional 0.8 MW. The contracted energy for the project is 57.84 million units (MU) at PLF of 64.10%. Additionally, the counterparty payment risk associated with NEA is deemed moderate, given its full ownership by the Government of Nepal. Such arrangements are expected to provide revenue stability and sustainability to the company.

Shuvam Power Limited (SPL) is a public limited company, incorporated in December 29, 2015. SPL is involved in the operation of 0.99MW run-of-the-river Lower Piluwa Khola Small Hydroelectric Project (LPKHP) at Sankhuwasabha District which has been in commercial operation since July 17, 2011. The company obtained the Generation License, from Government of Nepal – Ministry of Energy on April 15, 2008

Power purchase agreement of Shuvam Power Limited (SPL) has sufficient period coverage. Initially, Baneshwor Hydropower Private Limited (BHPL) had signed PPA with NEA on November 07, 2007 for sale of power generated from 0.99 MW capacity. Later, BHPL was acquired by Shuvam Power Limited (SPL).

The contracted energy for 0.99 MW is 6.84 million Units (MU) annually with the contracted Plant Load Factor (PLF) of 78.89%. PPA has been entered for the period of 25 years from the RCOD. Tariff rate as per PPA is Rs 3.90 per kWh for wet season (Mid-April to Mid-December) and Rs 5.52 per kWh for dry season (Mid-December to Mid-April).

Incorporated in May 2010 and converted into a public limited company in December 2016, Maya Khola Hydropower Company Limited (MKHCL) is operating a 14.9 MW Maya Khola HEP in the Sankhuwasabha district, Koshi Province of Nepal since July 07, 2023. The project is a run of the river (R-o-R) type and has been developed at 40% probability of exceedance (Q40). The project is one of the Super-Six projects, which was initially studied by Department of Electricity Development, Nepal (DoED).

The company started operations since July 07, 2023, i.e. within six months of RCOD of January 17, 2023, thus making it eligible for all five tariff escalations. The project’s tariff and offtake risks also remain low as the company has a long-term power purchase agreement (PPA) with the Nepal Electricity Authority (NEA, the sole purchaser and distributor of electricity in Nepal) for its entire project capacity. As of now, the project is connected to the NEA’s operational Baneshwor substation, which leads to low evacuation risks.