Mission 1: Sahas Urja (Solu Khola, 86 MW) — Benchmark IPP Success
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- Updated
- 2026-05-12
Source type: Research compilation — single-project deep-dive (4 pages) Original: Forensic reconstruction of Sahas Urja Limited sourced from ICRA Nepal surveillance reports (A.996, B.119) and corporate disclosures.
Summary
Sahas Urja Limited is the critical positive benchmark in Nepal's private IPP landscape. The compilation presents profitability in a fixed-tariff environment as a function of capital efficiency and operational optimization, not anomalous PPA rates.
Corporate Details
- Entity: Private IPP, incorporated February 2014, converted to public September 2014
- Asset: 86 MW Solu Khola (Dudh Koshi) Hydroelectric Project, Run-of-River
- Location: Solukhumbu District, Koshi Province
- Q-design: Q41 (~41% probability of exceedance)
- PPA: Signed February 25, 2015 | NPR 4.80 (wet) / 8.40 (dry) | 3% × 8 years escalation
- Contracted energy: 520.20 GWh/yr (100.27 GWh dry / 419.93 GWh wet = 19.28% dry mix)
- RCOD achieved: March 1, 2023 — retained all 8 escalations
Financial Performance (FY 2080/81)
| Metric | Value |
|---|---|
| Build cost (final) | NPR 172–175 million/MW |
| Total project cost | NPR 14.7 billion |
| Electricity sales revenue | NPR 2.648 billion |
| Net profit | NPR 902.33 million (+114.66% YoY) |
| Gross profit margin | 95.54% |
| Net profit margin | 23.61% |
| Interest expense | NPR 805.9 million (down from NPR 1.165B) |
| Plant Load Factor | 69.05% (~87–89% of contracted) |
| Debt financing | 76% (10-bank consortium led by Nepal Investment Bank) |
Why It Works
- Capital efficiency: ~NPR 173M/MW vs. industry average often exceeding NPR 200–250M/MW
- Escalation retention: Achieved COD on time → all 8 annual 3% escalations intact
- Scale: 86 MW means 19.28% dry energy mix still generates massive absolute NPR 8.40/kWh cash flows
- Deleveraging: Interest expense dropped from NPR 1.165B to NPR 805.9M
Promoter Profile
- Chairman: Him Prasad Pathak
- Also controls: 51% stake in Times Energy (341 MW Budhi Gandaki PRoR, NPR 52.5B syndication)
- IPPAN: Secretary, Executive Committee — direct lobbying access to MoEWRI, ERC, NEA
- Prior projects: Upper Hugdi Khola (5 MW)
Limitations
- Single-project deep-dive. This compilation covers only Sahas Urja / Solu Khola. Findings on capital efficiency, escalation retention, and promoter profile are not necessarily representative of the broader IPP sector.
- Research compilation, not peer-reviewed. Assembled from ICRA Nepal surveillance reports and corporate disclosures — has not undergone independent verification or institutional fact-checking.
- Financial snapshot. Data reflects FY 2080/81 performance; does not capture subsequent operational or financial developments, deleveraging progress, or PPA rate adjustments.
- Promoter profile from public sources only. Promoter relationships and institutional connections are inferred from publicly available corporate disclosures and IPPAN listings, not from direct interviews.