Connect with us

News

Lanka looking for cheaper three-year private power to plug capacity gap

Published

on

ECONOMYNEXT –Sri Lanka’s state-run Ceylon Electricity Board is looking for cheaper private power to plug near term gaps in supply and to offset high-cost power at the margin of costly generators owned by the utility, Energy Minister Kanchana Wijesekera said.

The CEB has advertised for firm energy above 50 Mega Watts that can dispatched at any time for one, two and three years.

“Objective of this endeavor is to serve the nation with low-cost electricity while maintaining an uninterrupted power supply in the country for 24 hours during any period of the year even in a natural disaster or a technical failure of an existing plant,” the tender notice said.

“The envisaged contract period will be for one, two or three years and expected to connect as early to the system. The source of energy shall be any type which can be dispatched to the national grid at least cost on the instructions of System Control Centre of CEB.”

The plants could be located anywhere and the company will also have to build transmission line to connect to the grid. Bids close on September 07.2023 was drier than expected and next year may also be dry, Minister Wijesekera said. Daily energy demand was now also higher than expected, he added.

The CEB is also in talks with ACE Power Embilipitiya and ACE Power Matara to buy power to plug a short-term gap due to being forced to release extra water from the Samanalawewa reservoir. However, these plants too could be used to replace higher cost CEB plants.

Private power without capacity charge could be bought at around 52 to 58 rupees based on discussions, Wijesekera said. The capacity charge will add to the cost.

Furnace oil is generally cheaper than diesel (CPC pricing and taxes may impact), newer plants with a better heat rate are cheaper than older ones, combined cycles are generally cheaper than pure gas turbines, and coal is generally cheaper than liquid fuels.

According to the latest data the energy cost (without capacity charge) of the Lakvijaya coal plant was 43.23 rupees a unit, Sapugaskanda barge was 44.15 rupees, Uthuru Janani was 44.18 rupees, Sapugaskanda A, 47.76 rupees, the West Coast plant 48.36, Kelanitissa 48.36, Kelanitissa Diesel 63.82.

Small CEB generators in Hambantota which were re-activated to avoid supplementary power was 85.28 rupees, CEB generators in Matugama was 87.24 rupees. A CEB gas turbine (expected to peaking) cost 113.11 rupees and a small GT 143.60 rupees.

CEB is now negotiating with ACE Embilipitiya and ACE Matara to buy power for the Southern grid after demands were made to release stored water ahead of schedule from Samamnalawewa reservoir.

“As a practical matter, some of these private plant are cheaper than some of our (CEBs) older plants,” Minister Wijesekera said. “They have been used for many years and their efficiency is low. At times, taking power from private plant is cheaper than those plants.

“So we have to clearly say the extra power is taken due to dry weather and being forced to release more water than earlier requested for irrigation.”

The capacity charge reflects the investment cost and profit. In the past some private plants under competitive bidding has taken a loss on the energy charge to guarantee a better heat rate and win power purchase deals, industry analysts say. Once a plant has been signed up, the capacity charge is a sunk cost. CEB is expecting to sign up both ACE plants of around 100MW and 23 MWs.

“We need at least about 100 MegaWatts,” Minister Wijesekera said. “As much power utilizing those plants would be an additional benefit. May be if there is a surplus of power we can stop some of the high cost power power plants that is in use today.

“If the GT-7 is going to cost us 143 (rupees), and the other plant is going to cost between 60 to 65 rupees, it makes perfect economic sense to go with those power plants.”

In the past attempts by CEB to get idle private plants before a crisis developed and boost is safety margin when the bargaining power to push down the capacity charge is with the CEB has been shot down by various activists.



News

UNEP support pledged to strengthen Sri Lanka’s Environmental Priorities

Published

on

By

A special bilateral discussion was held on Thursday (02) morning  at the United Nations Conference Centre (UNCC) in Bangkok, Thailand, between the Deputy Minister of Environment, Anton Jayakody, and regional representatives of the United Nations Environment Programme (UNEP).

The discussion began with an appreciation of the long-standing relationship between Sri Lanka and UNEP, particularly highlighting Sri Lanka’s role as a UNEA 8 Bureau member and a key partner in Global Environment Facility (GEF) projects. The meeting focused extensively on securing UNEP’s technical
and financial support to advance several of Sri Lanka’s national environmental priorities.

During the meeting, the Deputy Minister expressed Sri Lanka’s gratitude for the guidance provided by UNEP throughout the adoption process of the UNEA Youth Resolution. He outlined the national program currently being designed in Sri Lanka in alignment with the resolution. Under this initiative, attention was drawn to securing UNEP’s technical assistance, capacity-building support, and access to global funding mechanisms.

These resources will be utilized to formulate a “National
Environmental Literacy Index” to assess the environmental awareness of youth, establish “Youth Environmental Committees” spanning from the national to grassroots levels, set up university youth forums, and implement environmental promotion programs driven through sports

In addition, Sri Lanka requested UNEP’s assistance in upgrading its national air quality monitoring systems, enhancing data analysis, and developing policy guidelines.

The Deputy Minister also sought policy advisory services on Extended Producer Responsibility (EPR), technical expertise in plastic waste lifecycle management, and support for pilot projects aimed at minimizing single-use plastics and transitioning toward a circular economy.

Furthermore, the Deputy Minister noted that measures have been taken in collaboration with the Ministry of Transport to expedite sustainable e-mobility projects. He added that Sri Lanka anticipates UNEP’s support for the “Sustainable Cities Integrated Programme” under the country’s GEF 9 national
strategies. Reaffirming Sri Lanka’s active commitment to regional initiatives that foster environmental knowledge sharing among South Asian nations, it is expected that UNEP’s technical intervention during the upcoming GEF 9 financial cycle will continue to support Sri Lanka’s journey toward environmental resilience.

Continue Reading

News

CIABOC to question Harak Kata on Rs. 200 mn bribery allegation

Published

on

Nadun Chintaka (Harak Kata)

He is the only detainee at old Tangalle prison

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) probing bribery allegations pertaining to the recent arrest of attorney-at-law Rakitha Rajapakshe, former SJB Horana organiser Charitha Abeysinghe and another person is expected to question drug dealer Nadun Chintaka Wickremaratne alias Harak Kata being held under the Prevention of Terrorism Act (PTA).

The CIABOC arrested Rakitha and Charitha Kumara Wasantha Abeysinghe and former Director of Airport and Aviation Services Warushahanndige Aruna Sri Chathuranga on 25 June over the Rs 200 mn bribery allegation. Produced before the Colombo Chief Magistrate court on the same day, they were remanded until 3 July.

Sources familiar with the case told The Island that Wickremaratne arrested in Madagascar on 1 March 2023 was brought to Sri Lanka on 14 March 2023, and after preliminary investigations he was detained at the old Tangalle prison. Wickremeratne has been accused of running a major narcotics smuggling operation.

Wickremaratne’s lawyer Udul Premaratne, having visited Wickremeratne, sought the intervention of the Human Rights Commission of Sri Lanka to ensure the latter’s safety.

As many as 90 police (terrorist Investigation Department) and the Special Task Force (STF) have been assigned to the Tangalle old prison where Wickremaratne remains the sole detainee.

The CIABOC, in a statement posted in Sinhala on its website on 25 June said that arrested persons received the money after having initially asked for Rs 500 mn and then reduced it to Rs 200 mn. The Rs 120 mn allegedly received has been described as an advance.

Sources said investigators would question Wickremaratne over his wife’s claim that she had paid Rs. 120 million.

In terms of the PTA, the detention orders can be issued only by the Defence Minister. At the time Wickremaratne was brought to Colombo, Ranil Wickremesinghe held the defence portfolio. According to legal sources, when the President also held the defence portfolio, the responsibility for issuing the detention orders was relegated to the Defence Secretary.

Maj. Gen. Kamal Gunaratne who served as the Defence Secretary during that period.

Sources said that Wickremaratne’s wife was yet to come back and his parents and a brother were believed to be the only visitors except for lawyers. One of the crucial issues was how Wickremaratne had communicated with his wife living abroad, sources said.

By Shamindra Ferdinando

Continue Reading

News

Petrol, diesel prices could be reduced by Rs. 141 and Rs 126 per litre: Udaya

Published

on

Udaya

Pivithuru Hela Urumaya (PHU) leader and former Petroleum Minister Udaya Gammanpila yesterday (2) claimed that the price of a litre of Octane 92 petrol and auto diesel could be reduced by Rs 141 and Rs 126, respectively.

The former Energy Minister said that Rs 20 per litre price reduction declared by the Ceylon Petroleum Corporation (CPC) in respect of Octane 92 petrol and Rs 25 drop in litre of auto diesel price proved that the government fleeced the public.

Earlier, Samagi Trade Union Alliance convenor Ananda Palitha claimed that the price of litre of Octane 92 petrol and auto diesel could be reduced by Rs 115.

A litre of Octane 92 is sold at Rs 414 and a litre of auto diesel at Rs 382.

Pointing out that the CPC hadn’t reduced Octane 95 petrol and Super Diesel at least nominally, the former parliamentarian said that the CPC could reduce them by Rs 155 and Rs 149, respectively. A litre of petrol Octane 95 is sold at Rs 495 and a litre of Super Diesel at Rs 478.Gammanpila pointed out that the government had sharply increased prices when the Iran war entered the 12th day having claimed that that it had stocks for 35 days. (SF)

Continue Reading

Trending