GMR Energy, Bangladesh Sign PPA for Upper Karnali Hydropower Project
21 November 2019
GMR Energy and the Government of Bangladesh have signed a Power Purchase Agreement (PPA) and agreed on the rate for the Upper Karnali Hydro Electric Project in Nepal. The signed PPA has been submitted to the Bangladesh Cabinet for review.
Bangladesh plans to purchase 500 megawatts. The import will be coursed through dedicated transmission lines connected with the Indian grid.
GMR Energy, an Indian company developing the 900 MW export-oriented hydropower project, is the first company to export Nepal’s hydropower energy to Bangladesh via India through trilateral agreement between Nepal, India, and Bangladesh.
Mr. SN Barde, Chief Executive Officer of GMR Energy, underscored that the project will open the door for Nepal’s energy export to India and other neighboring countries.
The Upper Karnali project is being constructed under the build-own-operate-transfer PPP model. Nepal is set to receive 27% free equity and 12% free energy from the project, amounting to 108 MW of electricity, approximately equal to 15% of the current installed capacity in Nepal.