Connect with us

news

CEB engineers ask President to allow completion of coal-fired power plant extension project

Published

on

‘Before the next power shortage in the country’

By Ifham Nizam

Perturbed by reports that the government will terminate the ongoing 300MW Lakvijaya coal-fired power plant extension project, the Ceylon Electricity Board Engineers Union (CEBEU) has appealed to the President to allow the completion of this project of national importance.

“We are certain that your Excellency will provide the Ministry of Power and the CEB the necessary directions and assistance to complete the extension project within the shortest possible time”, the Union’s President Eng. Saumya Kumarawadu, says in a letter to the President.

The President earlier decided to implement the 300MW coal power extension project considering the fact that the country is facing an imminent power shortage as a result of not constructing a single large low-cost power plant since 2014, he said.

However, officials at the plant complex said they have not been officially informed so far to halt work on the plant.

The Sri Lankan government has already saved more than USD 2 billion due to the three coal-fired power plants at the Lakvijaya Power Plant Complex in Norochcholai, officials said.

The extension project is now underway with the China Machinery Engineering Corporation (CMEC) investing USD 4 million, while the Ceylon Electricity Board (CEB) has injected USD 1 million, they said.

The proposed plant, the fourth to be built at Norochcholai will translate into an annual saving of more than Rs. 27 billion to the government, former CEB, Chairman Eng. Vijitha Herath said.

Last year, Cabinet endorsed the fourth unit should given to CMEC considering the substantial revenue already saved due to the contribution from coal-fired plants under operation.

Kumarawadu said the proposed 300MW extension project will generate nearly two billion units of electricity per year. The fuel cost per unit of the existing coal plant is Rs.10 less than the next lowest thermal option available, furnace oil power plants. Hence, the average annual saving to the country by this plant will be around Rs. 20 billion.

 The savings compared to costly emergency power will be in the range of Rs. 30 to 40 billion per year. The price of LNG is also rapidly increasing compared to coal and even LNG. The cost difference between coal and LNG will be around of Rs. 3 to 6 per unit and savings will be in the range of Rs. 6-12 billion or more annually. So, it is evident that this extension plant will immensely help to overcome the financial crisis both in CEB and CPC and will also provide immense relief to the Treasury as well, he pointed out.

 He further said the investment for the new extension unit was comparatively low. All other power projects in the pipeline, including large-scale renewables, demand enormous investments for infrastructure development with long time span for implementation.

“This should be seriously considered by the government in a situation where the country is facing severe financial hardships due to Covid-19 pandemic,” the CEBEU President stressed.

 All preliminary work related to the project such as comprehensive feasibility studies, finalizing technical requirements, comprehensive Environmental Impact Assessment (EIA) studies, commercial agreements are completed now, he said.

It is just a matter of beginning construction work at site and completing the project before the next power shortage in the country, he added.

The CEBEU also said that there is a massive propaganda campaign against coal and one of the false ideologies promoted by these forces is that many countries are moving away from coal. While agreeing that coal power development is on a declining phase in wealthy developed countries, developing countries have not stopped constructing new coal plants mainly to ease the financial burden on their national economies.

 Citing examples, he said there are new coal development plans earmarked in countries like India, Bangladesh and Vietnam in the range from 22,000MW to 66,000 MW the next 10-12 years. Germany, one of the leading wealthy countries in renewable energy development, commissioned the 1100MW Datteln 4 coal power plant in May 2020. Dubai, another country with a very strong economy is constructing the 2,400MW Hassyan coal plant. The initial 600MW unit of the plant is to be commissioned in 2023, Kumarawadu explained.



Continue Reading
Click to comment

Leave a Reply

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

news

GL follows up Udaya’s initiative, negotiates concessionary crude oil supplies with UAE

Published

on

Balance-of-payment crisis continues to stagger govt.

By Shamindra Ferdinando

The United Arab Emirates (UAD) has agreed to discuss a possible arrangement to provide Sri Lanka crude oil on concessionary terms in the face of the country experiencing a severe balance-of-payments crisis, according to the Foreign Ministry.

Foreign Minister Prof. G.L. Peiris took up the matter with UAE Minister of Industry and Advanced Technology Dr. Sultan Al Jaber, on the sidelines of the 76th session of the United Nations General Assembly (UNGA) in New York. Prof. Peiris is on President Gotabaya Rajapaksa’s delegation to the UNGA.

In late August, Energy Minister Udaya Gammanpila sought the intervention of the Acting Head of the UAE Embassy in Sri Lanka, Saif Alanofy. Minister Gammanpila also met the Iranian Ambassador in Colombo in a bid to explore the possibility of obtaining oil from Iran on concessionary arrangements.

The Foreign Ministry statement on Prof. Peiris meeting with the UAE Minister dealt with the financial crisis experienced by the country. “Foreign Minister Peiris explained the challenges Sri Lanka is experiencing in respect of its external budget, as a result of the COVID-19 pandemic. Prof. Peiris focused in particular on the country’s requirement for oil and requested concessionary arrangements from the UAE.”

The Foreign Ministry quoted Minister Al Jaber as having said that the UAE would be happy to assist and proposed the establishment of a strategic framework to take the process forward.”

The ministry stressed that both sides agreed to follow-up rapidly.

Energy Minister Udaya Gammanpila earlier told The Island that concessionary arrangements were required to procure oil as part of an overall strategy to overcome the developing crisis.

Pivithuru Hela Urumaya (PHU) leader and Attorney-at-law Gammanpila said that increase in fuel prices in the second week of June this year was only a part of the government’s response to heavy pressure on foreign reserves. Minister Gammanpila said that the decision was taken close on the heels of dire warning from the Central Bank.

Minister Gammanpila said that in spite of foreign currency crisis, the government ensured an uninterrupted supply of fuel. According to him, Sri Lanka spent as much as USD 3.5 to 5 bn annually on oil imports depending on the world market prices.

Continue Reading

news

President attends 9/11 commemoration in NY

Published

on

President Gotabaya Rajapaksa yesterday attended the special commemorative event near the Manhattan Memorial in the United States to mark the 20th anniversary of terrorist attacks in Washington and New York.

The terrorist attacks took place on September 11, 2001, targeting the World Trade Center in New York and the Pentagon, the headquarters of the United States Department of Defence.

Coinciding with the 76th Session of the United Nations General Assembly, the United Nations Office of Counter-Terrorism and the 9/11 Memorial Museum jointly organised the event. Other Heads of State and government representatives, who were in New York to attend the UN General Assembly, were also present at the event to pay tribute to those who lost their lives in those attacks.

Continue Reading

news

FSP calls on govt. allies not to pretend to oppose adverse deal with US firm

Published

on

By Anuradha Hiripitiyage

Due to the secret agreement signed with US firm New Fortress Energy, Sri Lanka would soon face a situation akin to the one already faced by Ukraine, the Frontline Socialist Party (FSP) predicted yesterday.

“Sri Lanka is trying to reduce its dependency on coal and switch over to LNG. With this in mind, several coal and diesel power plants are to be converted into LNG in the coming decade. Now, we will entirely depend on the US to provide us with LNG to power these plants. Given that the US intends to control the seas in which Sri Lanka is placed strategically, they will not let us off the hook once they establish their foothold here. We are in deep trouble,” FSP Propaganda Secretary, Duminda Nagamuwa said.

Nagamuwa said that some constituents of the government were pretending that they opposed the transfer of government’s shares in the Yugadanavi Power Plant to New Fortress Energy. “But this is not the time for theatrics but for concrete action”, he said.

Nagamuwa said that the agreement between the government and US Company New Fortress Energy to construct a new offshore liquefied natural gas (LNG) receiving, storage and regasification terminal at Kerawalapitiya as well as the transfer of government’s shares in the Yugadanavi Power Plant had to be scrapped.

“Even government ministers agree that the agreement was not discussed with them. Several affiliates of the government are trying to convince the people that they are fighting this decision from inside. However, past experience has shown that when push comes to shove they will stay with the government. They must show the leaders of the government that they are not puppets,” he said.

Nagamuwa said that if those affiliated to the government were serious in their opposition to undermining Sri Lanka’s energy security they should show their commitment by doing something concrete.

The Yugadanavi Power Station at Kerawalapitiya already produced 300 MWs of energy and there was a plan to build another 350 MW plant there. The US Company had now been allowed to build an offshore LNG receiving, storage, and regasification terminal and to provide LNG to the existing Power Station and the new 350 MW power plant to be built, he said.

“Now we are under the power of the US. We will soon be facing the plight of Ukraine,” he said.

Continue Reading

Trending