News Morung Express
Dimapur | May 20
The Nagaland State Government has signed a Power Purchase Agreement (PPA) with a private energy company based in Dimapur. It was signed between the Department of Power Nagaland (DoPN) and Fitzroy Energy & Minerals Ltd, led by Temjenmoa Jamir. The PPA concerns a 27 MW thermal power plant project in Tuli, in the Mokokchung district.
According to a DIPR statement, this will be the fourth such deal for the Department of Power Nagaland (DoPN). The statement read: “A Power Purchase Agreement (PPA) was signed between the Electricity Department and Fitzroy Energy & Minerals Ltd in the presence of H Tovihoto Ayemi, MP and Councillor, Electricity, Government of Nagaland and officials of the electricity department and the finance department.”
Ayemi was quoted in the statement as saying that the DoPN wants to encourage companies and entrepreneurs to invest in power generation, while informing “that three other PPAs have been signed with different companies by the department in the production of solar, thermal and hydraulic energy”. He added that a biomass plant is also in the works.
The statement said that the director of the company, Temjenmoa Jamir, assured to show results on the ground, while expressing the hope that it will be a significant addition to the growth of Nagaland.
As The Morung Express reported in April 2021, citing a “tariff order” issued by the Nagaland Electricity Regulatory Commission in February 2020, the thermal project was proposed in 2018-2019. As per the “Order”, it was conceptualized as a 2 x 30 MW plant to be operationalized in two phases, with the developer anticipating a lead time of 24 months for Unit 1 and 27 months for Unit 2 .
The cost of the project was around Rs 420 Cr at around Rs. 6.9cr per MW. The energy charge/tariff (exchange rate) was approved at Rs 4.7/unit (kWh).
The developer was also asked to submit a fuel purchase agreement to ensure a reliable fuel supply for the plant and loan agreements with financial institutions.
Other instructions included adhering to “all applicable standards for the Air and Water Pollution Act/Rules and subsequent amendments” and strict maintenance of emission standards, in addition to adopt a “gradually increased” use of “bamboo cooking” instead of coal” from the 11th year of its commercial operation to create an environmentally friendly power plant.