Mini-hydro power emerging a more sustainable option than thermal power

Public Utilities Commission of Sri Lanka (PUCSL) analysis shows that the running cost for mini- hydro projects is some Rs 25 million per year, making them a financially sustainable solution for energy generation, in comparison to the extremely high running costs borne by thermal power plants operated by the Ceylon Electricity Board.

A senior official told The Island Financial Review that in the pursuit of sustainable and cost-efficient energy solutions, mini- hydro projects have emerged as a viable alternative, particularly for the private sector. “Small-scale hydroelectric power can be managed effectively with minimal operational costs, he added.

The official noted that mini hydro projects are typically small-scale hydroelectric power stations that generate electricity by utilizing natural water flow without the need for large dams or reservoirs. They offer a reliable source of renewable energy with lower environmental impact compared to larger hydro projects.

The private sector has been actively involved in managing mini- hydro projects, recognizing their potential to provide a stable revenue stream while contributing to clean energy production. “The scale of these projects aligns well with private sector capabilities, as they require relatively lower capital investment and can be efficiently managed by smaller teams, he added.

Moreover, the official said, with advancements in technology and increasing emphasis on renewable energy, mini- hydro projects offer opportunities for public-private partnerships. Incentives such as tax benefits, favorable tariffs, and government support for renewable energy further enhance the attractiveness of these investments.

“Beyond financial feasibility, mini- hydro projects bring several long-term benefits. They contribute to energy security by reducing dependence on fossil fuels and mitigating the impact of power shortages. Additionally, they have minimal environmental disruption compared to large-scale hydroelectric plants, preserving local ecosystems and water resources, he added.

By Ifham Nizam