Features
Mandate of Ministry of Power – Some ambiguities, conflicts and barriers
By Dr. Janaka Ratnasiri
The Gazette Notification Extraordinary No. 2187/27 of 09.08.2020 stipulates the mandates of ministries, both Cabinet and State, and the institutes coming under their purview. One common requirement of these mandates is that they should align with the President’s policy document “Vistas of Prosperity and Splendour (VPS)”. In assigning functions among ministries, one deviation from the past practice hitherto followed is the division of Ministry of Power and Energy into two separate ministries, Ministry of Power and Ministry of Energy. There is some sense in this decision (See also The Island of 14.08.2020). It is hoped this change is for the better and not for the worse, as usually happens.
MANDATE OF MINISTRY OF POWER AND STATE MINISTRY OF RENEWABLE ENERGY
The key mandate of the Power Ministry is given as:
Meeting the electricity needs of all urban and rural communities, based on the long-term generation expansion (LTGE) plan prepared by the Ceylon Electricity Board (CEB).
Among the special priority areas identified for the Power Ministry are the following:
Expand the capacity of the Puttalam coal power plant, with additional investment.
Balance the generation mix from renewable energy plants, thermal power plants and natural gas power plants while minimizing the cost of generation and eliminating any uncertainties in generation.
Implement the long-term generation expansion plan.
Improve the efficiency of transmission and distribution systems.
Minimize the cost of electricity for manufacturing industries enabling their competitiveness in global markets.
Special priority areas identified for the State Ministry Renewable Energy, are the following:
Convert the Kelanitissa power plant to a natural gas turbine plant, and expand the Kerawalapitiya power plant.
Develop a smart network ensuring generation efficiency and optimizing its use.
Encourage the use of roof-top solar PV panels in households, commercial establishments and factories, enabling supply of electricity at low cost.
Encourage the private sector and entrepreneurs to establish renewable energy projects.
Add to the national grid the Broadlands Hydropower (HP) plant by 2020, Uma Oya HP plant by 2021, Moragolla HP plant by 2023, Thalapitigala and Seethawaka HP plants by 2024.
Add to the national grid the Mannar 100 MW wind power plant by 2021 and add 800 MW of wind and solar systems set up at Mannar, Pooneryn and Moneragala.
PROVISIONS IN “VISTAS OF PROSPERITY AND SPLENDOUR”
The VPS document has no separate section on Power Sector, but has only a section on Renewable Energy (RE), highlighting the President’s desire to give priority for renewable energy. The preamble to this section says “Renewable energy has now become a widely discussed subject and is needed as part of the overall energy mix of a country, which consists of Hydro, Thermal, Coal and alternative renewable energies. It will ensure that the country has access to low cost energy needed for rapid economic acceleration. By 2030, we expect the country’s renewable energy mix to be 40% of the total portfolio. We also anticipate that hydro and renewable energy together would account for 80% of the overall energy mix by 2030”.
The following targets on power sector development are also given in the VPS document.
According to the current plan, we will take actions to add 230MW of power to the national grid by installing the Broadland hydropower station by 2020, Uma Oya by 2021, Moragolla by 2023, Talapitigala and Seethawaka by 2024.
Immediate actions will be taken to convert the Kelanitissa plant to a natural gas turbine plant, where similar two plants will be implemented in Kerawalapitiya and Hambantota before 2023.
As part of the environmental-friendly policy, we will convert the fuel-powered plants located around the Colombo area to natural gas turbine plants within the next year.
With respect to transformation towards Renewable Energy, the VPS document says:
We will add 100 MW of wind energy in Mannar by 2021. Additionally, we expect to add 800 MW of solar energy to the national grid by executing a wind and solar power project with a public-private partnership in potential locations around the country including Mannar, Poonareyn and Monaragala.
Roof top solar systems will be encouraged so that households and small businesses wo
uld have access to low cost energy, which will be done in the course of the next five years.
We will remove all impediments and incentivize the private sector and entrepreneurs interested in setting up renewable energy projects i.e. solar and wind, and to this end, the government will provide assistance.
We will also introduce an efficient energy generation programme using industrial waste in each city.
We will introduce new policies and legislation to ensure the efficient use of energy in construction sector.
AMBIGUITY IN TARGETS GIVEN IN THE VPS DOCUMENT
The preamble to the section on Renewable Energy in the VPS document says “By 2030, we expect the country’s renewable energy mix to be 40% of the total portfolio. We also anticipate that hydro and renewable energy together would account for 80% of the overall energy mix by 2030”. There is much ambiguity in this statement. Firstly, it is not clear what is meant by “total portfolio”. Secondly, it is not clear whether the term “overall energy” means energy consumed in all sectors including power, transport, industries, commercial and households or whether it means energy consumed in the power sector only. On the face of it, overall energy would mean the former.
But the State Minister of Solar Power, Wind and Hydro Power Generation Projects Development was heard over the TV recently saying that his Ministry’s target is to generate electricity up to 80% of the total electricity generation from renewable energy sources by 2030, in compliance with the VPS document. Obviously, the author of this document has erred when he said that 80% target is in respect of overall energy, if the State Minister’s word is taken as correct.
In an article published by the author in The Island of 19, 20, and 21 of February, 2020, he described, in detail a scheme to meet 80% of the total energy consumption from renewable energy sources by 2030 considering all sectors, including power, industries, transport, commercial and households. The scheme included operating wind power and solar power units as stand-alone systems generating direct current for electrolyzing water and producing hydrogen. There are several options available to use hydrogen to meet the energy needs in power, industries and transport sectors. Another option given in the article is to convert biomass into a liquid fuel for use in transport and households.
Energy generation and consumption data in different sectors in Sri Lanka is given in the Energy Balance Statement (EBS) prepared annually by the Sri Lanka Sustainable Energy Authority (SLSEA). The latest EBS is available only in respect of 2017. Table 1 gives data taken from the EBS and it shows that Sri Lanka has already achieved 45% of renewable energy share in the total energy mix in 2017. Hence, to give a target of 40% to be achieved in 2030 has no meaning.
Table 1 Overall Energy consumption given in 2017 EBSFuelQuantityUnitEnergy Content
(PJ)Share %Petroleum oil 5,375kt232.0 43.9Coal 2,156kt 56.9 10.7Sub-Total (Fossil Fuels) 54.6Major hydro 3,075GWh 30.9 5.8Biomass11,810kt192.9 36.5Other Renewables 1,650GWh 16.2 3.1Sub-Total (Renewables) 45.4Total528.9100.0 ELECTRICITY DEMAND BY 2030
The CEB prepares biennially a long-term generation expansion (LTGE) plan outlining the least cost options of generation plants that need to be added to the system annually for the next 20 years. The latest plan is in respect of the period 2020 – 2039 which is still in the draft form yet to be approved by the Public Utilities Commission, Sri Lanka (PUCSL) and scrutinized by the public. The Plan includes a Base Case that will meet the needs of average demand as well as other cases to meet the needs of high and low demand. Table 2 gives the capacity of different types of generating units that need to be added during 2020 – 2030 as given under Base Case.
Table 2. Capacity additions proposed in LTGE Plan 2020-39Type of plantCapacity to be added during 2020-2030
MWMajor hydropower plants627Solar PV plants900Wind power plants675Biomass plants55Mini-hydro plants165Diesel plants665Gas turbine plants70Combine cycle gas turbine plants1,500New Coal power plants 1,200
The LTGE Plan has also worked out the average generation from each plant type annually and the values obtained for 2030 are given in Table 3, extracted from the data given in Annex 8.4 of LTGE Plan. It is to be noted that it is not possible to forecast exact values for generation from each category in the future because it depends on many extraneous factors such as rainfall, cloud cover, wind regime, fuel prices and demand which are not known accurately in advance. Annex 8.4 gives both average values as well as high and low extreme values anticipated considering the uncertainties. Table 3 gives only the average values anticipated.
It is seen that according to CEB’s LTGE Plan for 2020-39, generation from renewable sources could reach only 35% by 2030, which is far below the 80% target given in President’s VPS Policy Document, assuming what is intended by “total energy” appearing in this document is total electricity generation. In order to align with the President’s policy, CEB will therefore have to come out with a revised plan for capacity additions reducing the thermal plant capacity and correspondingly increasing the RE systems enabling to raise the RE share in total electricity generation from 35% to 80% by 2030.
Table 3. Forecasted average generation in 2030 Plant categoryCapacity MWGeneration GWhMajor hydropower plants1,607 4,364Other renewable energy plants2,700 6,738Sub-total – RE sources4,30711,102Reciprocating plants 136 413Existing coal power plant 810 4,781Existing combined cycle plants 594 1,825New gas turbine plant 70 113NG combined cycle plants 1,500 5,783New coal power plants1,200 7,721Sub-total – Thermal4,31020,636Total31,738Share of RE generation35.0%
OPTIONS FOR MEETING THE PRESIDENT’S TARGET
The obvious choice for meeting the President’s target is to shift from coal power to solar and wind power. In an article written by the author appearing in the Island of July 31st and August 1st, 2020, he showed that by shifting from coal power to solar and wind power, CEB can save over 100 billion rupees annually. This is based on the price of LKR/kWh 10 offered in an on-going wind power project and bids received for solar power projects as divulged by CEB Chairman (Island of 24.07.2020). This is much less than the average cost of generation incurred by CEB which is LKR/kWh 23. In addition to the expenditure saved, adopting solar and wind power gives a bonus of providing pollution free generation.
Several proposals for building large scale solar power plants and wind power plants have been granted Cabinet approval in 2016 and 2017, but there have been no follow up measures taken to pursue them by the CEB. This is despite their economic and environmental advantages. With the announcement of President’s policy on promoting renewable energy, it is hoped that the officials in the Power Ministry and CEB will change their mindset and implement the proposed RE projects without delay. In order to get the private sector involved in this exercise, the present limitation of 10 MW for the development of RE projects by the private sector has to be removed.
The officials of the Power Ministry as well as of the CEB need to be reminded of the statement “We will remove all impediments and incentivize the private sector and entrepreneurs interested in setting up renewable energy projects i.e. solar and wind, and to this end, the government will provide assistance” appearing in the VPS policy document under Renewable Energy section. It is essential that they change their lackadaisical attitude towards renewable energy, if the President’s targets are to be achieved.
The mandate of the State Ministry of Renewable Energy includes building of large scale solar and wind power plants as priority areas. However, their implementation will be possible only with the concurrence of CEB, which was lacking in the past RE projects. There were also media reports of India offering a large solar park under the International Solar Alliance initiated by the Indian Prime Minister together with the French President at the Climate Change Summit Conference held in 2015. Sri Lanka should accept this offer and accelerate building up its solar power capacity.
Another option available is to increase the large hydropower capacity. The general thinking on this is that there are no more suitable sites available to build large hydropower plants in Sri Lanka. However, it is possible to build a large hydro power plant by building a new reservoir on Kotmale Oya below St. Clair’s waterfall and linking it to the existing shaft of the Upper Kotmale Power Plant. This will enable it to operate during the day increasing its plant factor rather than operate only as a peaking plant as done now. Water spilling over the Upper Kotmale Reservoir as well as water flowing down Devon’s water fall can be collected in this new reservoir.
This proposal was made by the Central Engineering Consulting Bureau (CECB) during the planning stage of Upper Kotmale project but not accepted by the Japanese Contractors. It has the potential to add about 160 MW of capacity, generating additional 520 GWh of RE annually. This is a better option than diverting water from Pundalu Oya to the shaft of the Upper Kotmale Project as proposed by CEB in its 2020-39 Plan.
The CEB’s LTGE Plan has given low priority for biomass power plants, adding only 5 MW capacity annually. This can be easily enhanced by setting up dedicated energy plantations and mixed plantations which will generate more renewable energy. It will also provide more opportunities for income generation to rural people and providing fodder to maintain a livestock industry. The colossal sum of money spent annually on importing fuel for thermal power plants presently could be retained in the country by developing biomass power plants.
It has been estimated that 1 ha of dedicated plantation of a crop such as gliricidia will yield 10 t of biomass annually. Assuming combustion of 1 t of biomass with 33% efficiency will generate 1.5 MWh of electricity, 1 ha of plantations has the capacity to generate energy equivalent to 15 MWh. Hence, to replace 1 MW of thermal power plant, about 500 ha energy plantations are required. This could be on new land or on home gardens and abandoned cropland including fallowed paddy land.
In 2019, the Cabinet declared 2022 as the year of Biomass Energy with the objective of promoting energy generation from biomass. Already, SLSEA is pursuing a project funded partly by UNDP and FAO for “Promoting Sustainable Biomass Energy Production and Modern Bio-Energy Technologies” with the specific objective of removing obstacles to the realization of sustainable biomass plantation, increase of market share of biomass energy generation and adoption of biomass- based energy technologies in Sri Lanka. Currently, a survey is planned to identify land available and suitable for energy plantations. Findings of this study will help developing more biomass power capacity at commercial scale by 2030.
CONFLICT BETWEEN THE POWER MINISTRY MANDATE AND VPS POLICY DOCUMENT
The Power Ministry mandate has the following provisions pertaining to the LTGE Plan and Puttalam Coal power plant.
Meeting the electricity needs of all urban and rural communities based on the long-term generation expansion (LTGE) plan prepared by the Ceylon Electricity Board (CEB).
Expand the capacity of the Puttalam coal power plant with additional investment.
Implement the long-term generation expansion plan.
As mentioned previously, CEB’s current plan envisages building 1,200 MW of coal power plants by 2030. Though it is consistent with the above mandate of the Power Ministry, its implementation will result in achieving only 35% share for RE plants out of total generation by 2030. This is in violation of the VPS targets. Hence, either the State Ministry should pursue more RE projects disregarding what was specified in the CEB’s LTGE Plan or the CEB revise its Plan to align with the President’s VPS document.
The VPS document has the following statement:
As part of the environmental-friendly policy, we will convert the fuel-powered plants located around the Colombo area to natural gas turbine plants within the next year.
It is gratifying to note that the new Government has decided to adopt an environment-friendly policy. However, it should apply not only to Kelanitissa Complex, but also to Puttalam Power Plant as well where the pollution is much severe than at Kelanitissa, particularly arising out of million tonnes of ash accumulated over the years containing many toxic heavy metals including mercury and arsenic.
Hence, in keeping with this policy, the proposal to add another 300 MW coal power plant to Puttalam Complex should be scrapped and instead the government should build a NG operated power plant of similar capacity which will be cheaper and easier to operate and maintain. Further, it will not emit any polluting gases such as Sulphur Dioxide or any particulates or any ash at all. Even the emission of other gases such as Carbon Dioxide contributing to global warming and Oxides of Nitrogen will be very much less.
Also, the LTGE Plan is highly flawed. It is supposed to determine which power technology will be the cheapest in 20 years hence based on current prices. With the cost of generation depending on plant capital cost and fuel prices both of which could vary widely within a span of 20 years, it is futile to make forecasts now as to which technology is the cheapest in 20 years hence and to adopt it. The technology should be selected after calling for bids for different technologies and selecting the most economic plant that meets detailed performance specifications as well as specifications on emission limits. This should be done at the time of building the plant and not based on flawed forecasts. Hence, stipulating a mandate to follow a flawed plan does not make sense.
BARRIERS AGAINST THE STATE MINISTRY AND VPS MANDATE
The State Ministry mandate has the following requirement:
Convert the Kelanitissa power plant to a natural gas turbine plant, and expand the Kerawalapitiya power plant.
The VPS document has the following requirements:
Immediate actions will be taken to convert the Kelanitissa plant to a natural gas turbine plant, where similar two plants will be implemented in Kerawalapitiya and Hambantota before 2023.
As part of the environmental-friendly policy, we will convert the fuel-powered plants located around the Colombo area to natural gas turbine plants within the next year.
Conversion to natural gas operation is possible with gas turbine power plants, both open cycle gas turbines (OCGT) and combined cycle gas turbines (CCGT). The latter comprises of two generating units, a gas turbine and a steam turbine which operates with hot exhaust gas released by the gas turbine without consuming additional fuel. Hence, a CCGT plant has a high efficiency exceeding 50%.
At Kelanitissa Complex, there are two OCGT plants with capacities 80 MW and 115 MW commissioned in 1981/82 and 1997, respectively, and two CCGT plants with capacities 165 MW and 163 MW commissioned in 2001/03 and 2003, respectively. All these power plants currently operate with auto diesel, except that the CEB owned 165 MW plant operates partly with diesel and partly with naphtha produced as a surplus in the refinery. All these plants can be converted to operate with NG after modifying their fuel injection systems, if it is found economical to do so considering their age. However, the non-availability of NG is a barrier to convert them within the specified time targets given in the mandates.
In order to convert these gas turbine plants to operate on NG, first NG will have to be imported in the form of liquefied natural gas (LNG) for which special unloading jetties on land or floating units need to be built which takes several years. Though negotiations were held with India and Japan for several years after signing memoranda of understanding with them for building a terminal and importing LNG, no progress has been made public on this project. It was also reported in the media that CEB is seeking assistance from the Asian Development Bank (ADB) to establish a terminal for importing LNG.
Originally, the Ministry of Petroleum had the mandate for importing LNG, but because of the ministry’s inaction, the CEB obtained Cabinet approval for them to import LNG directly. However, under the new government, all matters relating to petroleum including NG comes under the purview of the Ministry of Energy. It is to be seen how the two ministries will coordinate to supply NG for operating not only these existing gas turbine power plants but also the proposed new gas turbine power plants. Importing of LNG needs to follow international protocols and has to be handled by competent operators after having in place the necessary regulatory framework on safety aspects and issuing licenses for operators.
CONCLUSION
The mandate given to the Ministry of Power recommends the establishment of coal power plants in keeping with the long-term generation expansion plan of CEB. On the other hand, the mandates given to the State Ministry for Renewable Energy recommends conversion of existing thermal power plants to operate on natural gas in keeping with the environment-friendly policy of the government. Therefore, to be consistent in applying this policy, the proposed 300 MW coal power plant to be built at Puttalam should also be converted into a gas power plant.
This could be best done by expediting the building of the 300 MW gas power plant at Kerawalapitiya for which the Cabinet approval has already been granted after a procurement process which got dragged for nearly 4 years. This plant, which could be built much faster than the coal power plant, will be able to meet any power deficit anticipated in a few years’ time. It appears that the Ministry is holding back this project for reasons best known to them and the new Minister should use his good office to expedite the project without listening to officials who were responsible for delaying it. The most practicable way of achieving these targets is to appoint a new set of young honest officers not allergic to renewable energy and gas power to take decisions on these matters.