Morung Express News
Dimapur | May 20
The Nagaland State Government has signed a Power Purchase Agreement (PPA) with a private energy firm based in Dimapur. It was signed between the Department of Power Nagaland (DoPN) and Fitzroy Energy & Minerals Ltd, helmed by Temjenmoa Jamir. The PPA is for a proposed 27 MW Thermal Power plant in Tuli, Mokokchung district.
According to a DIPR release, it will be the fourth such deal for the Department of Power Nagaland (DoPN). The release said, “A Power Purchase Agreement (PPA) was signed between the Power Department and Fitzroy Energy & Minerals Ltd in the presence of H Tovihoto Ayemi, MLA & Advisor, Power, Government of Nagaland and officials from Power Department and Finance Department.”
Ayemi was quoted in the release as stating that the DoPN wants to encourage companies and entrepreneurs for investing in energy generation, while informing “that three more PPAs have been signed with different companies by the department in solar, thermal and hydro energy generation.” It added that a biomass plant is also in the pipeline.
The release said that the Director of the firm, Temjenmoa Jamir assured of showing results on the ground, while he expressed hope that it will be a significant addition to the growth of Nagaland.
As reported by The Morung Express in April 2021, citing a ‘Tariff Order’ issued by the Nagaland Electricity Regulatory Commission in February 2020, the thermal project was proposed sometime in 2018-19. As per the ‘order,’ it was conceptualized as a 2x30MW plant to be operationalised in two phases, with the developer projecting a completion time of 24 months for unit-1 and 27 months for unit-2.
The cost of the project was around Rs 420 Cr at an estimated Rs. 6.9cr per MW. The energy charge/tariff (trading rate) was approved at Rs 4.7/unit (kWh).
The developer was also asked to submit fuel purchase agreement for ensuring reliable fuel supply for the plant and loan agreements with financial institutions.
Other instructions included adherence “to all the applicable Standards for Air and Water Pollution Act/Rules and subsequent amendments thereof” and strictly maintaining emission norms, besides adopting “progressive increased” use of “bamboo firing” in place of coal “from the 11th Year onwards of its commercial operation so that an eco-friendly power plant is created.”
