Connect with us

Business

Sahasdhanavi stresses power plant’s critical role in energy security, clarifies tariff concerns

Published

on

The company says that the levelised tariff is a theoretical metric based on RFP assumptions such as fixed fuel prices and exchange rates

Sahasdhanavi Ltd has responded to recent debates regarding its power plant’s levelised tariff, reaffirming the project’s significance in Sri Lanka’s energy stability as outlined in the government-approved Long-Term Generation Expansion Plan (LTGEP). In a press release issued recently, the company sought to clarify misconceptions and provide transparency on key aspects of the project.

According to the press release:

The 350 MW RLNG/Diesel power plant was awarded in 2021 through an International Competitive Bidding (ICB) process, with Sahasdhanavi submitting the lowest bid. After securing Cabinet and Public Utilities Commission of Sri Lanka (PUCSL) approval by December 2023, the project faced delays due to broader national circumstances.

Key benefits over intermittent renewables:

Unlike variable renewable energy sources, Sahasdhanavi’s plant offers:

24/7 Reliable Power: 318 MW (diesel) or 350 MW (LNG) on demand, with over 90% availability (penalties apply if unmet).

Flexible Payment Structure:

Capacity Charge (Rs. 6.5/kWh): Paid only when the plant is idle.

Energy Charge: Based on actual consumption (~Rs. 57/kWh for diesel, ~Rs. 33/kWh for LNG).

Market-Linked Adjustments: Final tariffs in 2028 will align with prevailing fuel prices.

Addressing levelised tariff misconceptions:

The company clarified that criticisms of the levelised tariff stem from a misunderstanding of its purpose:

It is a theoretical metric based on RFP assumptions (fixed fuel prices, exchange rates).

Does not reflect actual payments, which are tied to real-time costs.

Follows historical practices approved by the Cabinet.

The PUCSL endorsed the tariff and Power Purchase Agreement (PPA) on 1 April 2025, with additional legal clearance from the Attorney General’s Department.

A Cost-Effective Alternative

A Sahasdhanavi spokesperson emphasized the plant’s advantages:

Grid Stability: Provides essential backup when renewables underperform.

More Affordable than alternatives:

A comparable Battery Storage System (BESS) would cost USD 1.75–2.2 billion (~6x more) with additional standby charges (Rs. 37/kWh).

Requires supplementary power plants for charging, further increasing expenses.

Enables Renewable Expansion by ensuring dependable backup power.

“This plant is a strategic asset for energy security,” the spokesperson stated. “The levelised tariff is purely for bid evaluation – actual costs depend on real-world factors. We urge policymakers and the public to recognise the project’s vital role in Sri Lanka’s sustainable energy future.”



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Steps leading to the achievement of SL’s national interest in IOR

Published

on

Prof. Nobukatsu Kanehera: ‘Rulesbased order violated.’

Sri Lanka needs to build awareness, effective policies and encourage regional multilateral frameworks to develop a multi-pronged approach to secure its national interest and safeguard regional stability in the Indian Ocean Region (IOR), as the region together with its seabed have become an area of strategic competition, former Assistant Chief Cabinet Secretary to former Japanese Prime Minister Shinzo Abe, Prof Nobukatsu Kanehara said.

“The Indian Ocean has been a maritime highway for millennia, with Sri Lanka being a midway point of the flow of trade, culture, technology and intellectual progress, Prof Kanehara said at the 4th Pathfinder Foundation Sri Lanka Indian Ocean Security Council Conference held recently at the Cinnamon Grand Hotel. The forum was presided over by Pathfinder Foundation Sri Lanka Chairman Ambassador (retd.) Dr. Bernard Goonetilleke.

The forum’s purpose was to obtain expert commentary regarding the need for Sri Lanka to ‘up its game’ in the IOR.

Abe said that from the 1870s onwards, the Indian Ocean had become the global communications highway, with the British Empire laying submarine cables from Aden to Mumbai, linking Europe to South Asia.

‘Since then, with the passage of time, Ceylon, and later Sri Lanka, has seen the bulk of the global digital communications umbilical laid through its maritime domain of influence, with over a dozen such cables laid over the island’s Exclusive Economic Zone (EEZ) thus far, he said.

Prof. Kanehera added: ” With the rise of Artificial Intelligence (AI) and increasing digitisation, such submarine cables have become critical strategic infrastructure for the island nation as well as the region.

‘This timely conference came as world powers rushed to secure critical minerals needed to maintain a technology edge over rivals, both militarily and economically, disrupting the longstanding rules-based order, especially at sea and in trade.

‘The lack of cognition regarding how to understand and navigate the return to a near Cold War era strategic competition in the Indian Ocean, and increasingly in the sub-surface domain and the seabed, among Sri Lanka’s policy making community, bureaucrats and public leaves the economically weakened island nation more vulnerable to geopolitical coercion, shocks and tug-o-war, which will likely increase in the coming decade.’

By Hiran H Senewiratne

Continue Reading

Business

Automobile Association of Ceylon donates towards Disaster Relief Support Fund

Published

on

Automobile Association of Ceylon (AAC) donated Rs. 25 Million towards the Disaster Relief Support Fund to assist the Ditwah Cyclone victims.

A donation was handed over to Dr. S N Kumanayake, Secretary to the President of Democratic Socialistic Republic of Sri Lanka by Dhammika Attygalle, President – AAC at the Presidential Secretariat on the 19th February 2026 in the presence of Executive Committee members.

Dhammika Attygalle President AAC (third from Left) handing over the cheque to Dr S N Kumanayake, Secretary to the President of Democratic Socialistic Republic of Sri Lanka.

In the picture L-R Lasitha Gunaratne- EXCO Member – AAC, Devapriya Hettiarachchi – Secretary -AAC, P H Liyanage, P B Kulatunga & Indunil Udaya – Members of the EXCO – AAC

Continue Reading

Business

‘Sri Lanka’s first AI-powered digital trainer for Banca partners’

Published

on

A few highlights from the NAVI Launch event.

HNB Assurance PLC recently introduced NAVI, The Digital Trainer, a new AI-powered training companion designed to support its banca staff with instant, reliable access to knowledge, whenever they need it. The solution was unveiled at Partnership Life, the company’s annual forum dedicated to celebrating the performance of its Partnership Channel.

Built to make learning simpler and more accessible, NAVI is a voice-enabled AI chatbot that helps banca staff quickly find product information, policy details, and process-related guidance by drawing from a centralized knowledge bank. Whether on the go or at the point of customer interaction, NAVI ensures that answers are never out of reach.

Sharing his thoughts, Sanesh Fernando, Chief Business Officer / GM – Partnership Channel at HNB Assurance, opined, “With NAVI, our intention is to make learning a part of everyday conversations. By combining chat and voice capabilities, we are making it easier for our officers to learn on demand and perform with greater confidence.” He further noted that it is this continuous focus on meaningful innovation that has consistently set HNB Assurance apart within the bancassurance space. “Solutions like NAVI reflect the way we think and operate as a Partnership Channel. This commitment to enabling our partners and bancassurance officers through practical, forward-thinking initiatives has been a key driver in our journey, one that has seen us being recognized as the Best Life Bancassurance Provider for five consecutive years, while also delivering strong and sustained growth year after year.”

Commenting on the launch, Suneth Jayamanne, Chief Information Officer / GM of HNB Assurance, said, “We see NAVI as a support system rather than a piece of technology. Our Bancassurance officers operate in fast-paced environments and having instant access to the right information can make all the difference. NAVI is about helping our people feel more prepared, more confident, and more connected to the knowledge they need to serve customers better.”

The launch of NAVI was marked by an engaging reveal featuring an AI-generated avatar that introduced the digital trainer and its capabilities, symbolizing a shift towards a more intuitive and people-friendly approach to learning.

As HNB Assurance continues to expand its Partnership Channel, innovations such as NAVI highlights the company’s focus on building strong, well-supported partnerships, blending technology with a deep understanding of how people learn, and work.

HNB Assurance PLC (HNBA) is one of the fastest growing Insurance Companies in Sri Lanka with a network of 79 branches. HNBA is a Life Insurance company with a rating of ‘A’ (lka) by Fitch Ratings Lanka for ‘National Insurer Financial Strength Rating’. Following the introduction of the segregation rules by the Insurance Regulator, HNB General Insurance Limited (HNBGI) was created and commenced its operations in January 2015; HNBGI continues to specialize in motor, non-motor and Takaful insurance solutions and is a fully owned subsidiary of HNB Assurance PLC. HNB General Insurance has been assigned a ‘National Insurer Financial Strength Rating’ of ‘A’ (lka) by Fitch Ratings Lanka Limited. HNBA is rated within the Top 100 brands and Top 100 companies in Sri Lanka by LMD and HNB Assurance has won international awards for Brand Excellence, Digital Marketing and HR Excellence including the Great Place To Work® Certification, and won many awards for its Annual Reports at award ceremonies organized by the Institute of Chartered Accountants of Sri Lanka.

Continue Reading

Trending