Apart from LNG plants in the pipeline

by IFHAM NIZAM

As the demand-supply gap in Sri Lanka’s power generation sector continues to widens, the government announced plans for an ambitious solar power based national mini-grid that extends to villages. This is apart from the LNG plants in the pipeline.

Ceylon Electricity Board (CEB) Chairman Eng. Vijitha Herath said that on completion, the proposed solar network is expected to offer a unit of electricity 45% lower than electricity produced from existing solar powered networks.

Former Minister Basil Rajapaksa, who is also the Chairman of Sri Lanka’s Presidential Task Force on Economic Revival and Poverty Alleviation, has instructed the CEB to construct 100-kilowatt solar power plants and connect them to 7,250 transformers across the country within the next three years.

A key feature of the project is that it is fashioned on the support of villagers at local level. The village level credit and finance institutions such as Samurdhi Banks, Rural Banks, Cooperative Societies and Community Network projects are also considered as key investors in the project which calls for an estimated Rs. 10 million (USD 56,000) investment.

Competitive bidding is to be called soon, according to official sources, who also revealed the projected 1,000MW can be obtained at Rs. 12 per unit, 45% lower than the 300MW of solar energy obtained at Rs. 22 per unit for the last five years.

The project, which is in line with the CEB and Lanka Electricity Company’s (LECO) project to connect 10,000, 100 kW solar power plants to the Distribution Transformer Network, will integrate 7,250 transformers from the 35,000 transformer network installed across the country.

In Sri Lanka, the gap between the demand and supply of power is fast becoming unbridgeable. According to CEB estimates, Sri Lanka’s electricity demand is expected to grow at 5.3 percent on average in the 2015 – 2034 period, in addition the peak demand is expected to grow at 4.7 percent on average.

With the average cost of generation at Rs. 23 and the selling price at Rs. 16, the CEB finds hard to bridge the gap. This trend had been continuing for more than four years.  

A senior Electrical Engineer said the CEB cannot go on with expensive diesel and emergency power and should stick with the proposed Long Term Generation Plan.

CEB’s Long-Term Generation Expansion Plan encompasses LNG-fired combined cycle power plants and associated LNG import infrastructure – 2×300 MW dual fuel combined cycle power plants to be commissioned in the western region by 2022.

The associated LNG importing infrastructure is to be developed on a fast track process with sufficient capacity to cater to both the new power plants and the conversion of other oil-fired combined cycle power plants in the western region.

Furthermore, an additional 3×300 MW natural gas combined cycle power plants are expected to be commissioned by 2026 in either Kerawalapitiya or Hambantota.

Power and Energy Minister Dallas Alahapperuma said that during the last five years, only 300MW were added to the national grid, although the demand for electricity is growing at 6% on an annual basis.

Lanka Transformers Limited (LTL), which will own a majority stake has received Cabinet approval for the construction. The power plant with a capacity of 300MW (extending up to 350MW) to be commenced at the Lakdanavi Power Plant premises in Kerawalapitiya in December after the Power Purchase Agreement signed later this month.

The first phase of plant, the open cycle 225 MW, will be completed in 21 months and 125MW Combined Cycle would be completed in one year, a senior Electrical Engineer told The Sunday Island.

He said that the government should go all out to call for tenders to bring LNG at the earliest, rather than waiting till the plants are completed. “This is a crucial process that cannot be taken lightly,” he added

At present, about 35 percent of Sri Lanka’s national power generation comes from diesel power plants where the cost of production per unit is as high as Rs. 30. LNG power plants can reduce the cost up to Rs. 15 per unit.