Nepal govt to bring thermal plants from Germany

The Ministry of Energy has begun process to bring two thermal plants from Germany to install in Biratnagar and Birgunj industrial corridors.

German officials had pledged to provide two thermal plants each of 50 MW capacities during a visit of energy minister Prakash Sharan Mahat.

Energy ministry has written to the finance ministry on Sunday requesting to subsidise electricity produced from the thermal plants.

The electricity produced from thermal plants is much expensive than the current rate charged by Nepal Electricity Authority (NEA).

NEA officials say, at the current rate of diesel, electricity produced from thermal plants costs about Rs 15 more for every unit than that produced from hydro projects.

At this rate, the government will have to bear a loss of at least Rs 5 billion, if it installs a 100 MW thermal plant.

Although, the erstwhile Maoist-led government had made a policy level decision to install thermal plants of up to 200 MW, it had later backed up due to the exorbitant running cost.

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