Last-ditch effort by Power Ministry to gain Cabinet approval for short-term power purchases

• Fast-tracks efforts to get 128 MW approved at potentially final Cabinet meeting before P’ment dissolution 
• But amount less than half of 300 MW estimated to be needed by CEB
• Rs. 700 m spent on Lakvijaya Unit I maintenance but facility crashes just days afterwards
• CEB hopeful of high coal power generation once facility back online

By Shailendree Wickrama Adittiya 

The Power and Energy Ministry this week fast-tracked efforts to gain Cabinet approval to purchase 128 MW to meet short-term power requirements but this is less than half of the 300 MW that the Ceylon Electricity Board (CEB) has estimated is needed to ensure uninterrupted power supply over the next two months.       

The ministry’s task of supplying power has been complicated due to the shutdown of Unit 1 of the Lakvijaya Power Station in Norochcholai for repairs in October. Despite spending Rs. 700 million, the facility had to be shut down just days after it was brought back on line on 4 February, according to officials. 

Power and Energy Director (Development) and Media Spokesperson Sulakshana Jayawardena told the Daily FT that the Norochcholai Coal Power Plant was reopened on 4 February after being shut down for a period of 100 days for maintenance.

The maintenance was carried out by China Machinery Engineering Corporation (CMEC) and the Ceylon Electricity Board. 

“There are certain pipes to get the oil for bearing and there was a leakage or crack in the tubes so they stopped the power plant again to repair the tubes,” he said, adding that he had received reports that the repairs had been completed. 

Jayawardena said the start-up process was expected to have commenced on Monday evening and Unit 1 is to be connected to the system today following synchronisation. The other two units of the power plant are functioning at full capacity.

However, shutting down Unit 1 of the Norochcholai Power Plant cost the country 10%-12% of its total power generation with more thermal power needed to bridge the demand gap. 

“The Norochcholai power plant is responsible for 40% of the electricity generation but these days generation is at around 30%,” Jayawardena explained.

While Jayawardena confirmed that no power interruptions would be caused by the repairs, he said that the CEB had requested a 300 MW power purchase in order to avoid power shortages this year. This includes the extension of a 100 MW Power Purchase Agreement (PPA) signed in January last year.

“The tender was floated for a one-year period but as per Cabinet approval, it was connected only for six months and the PPA was signed only for six months,” the ministry media spokesperson said, adding that another tender was floated for a 104 MW lot and a 96 MW lot, based on the CEB’s land availability.

“We received proposals for 128 MW, including all of the 104 MW lot and another 24 MW out of the 96 MW lot,” he said, explaining that a 128 MW purchase would be made following Cabinet approval. Once the PPA is signed, the bidder is supposed to connect power to the grid within a one-month period.

During the tender process, the CEB received successful bids from V Power and Altaca. A total of 228 MW will be added to the supply.

Last month, Cabinet approved the addition of two 300 MW coal power plants to the Lakvijaya plant, as well as the construction of a 300 MW LNG plant in Kerawalapitiya, which the ministry, in a statement issued yesterday, said would commence this year. Power and Energy Minister Mahinda Amaraweera was unavailable for comment despite repeated attempts to reach him.  

If Parliament is dissolved during the first week of March, the Cabinet meeting this week could be the last one before Parliamentary Elections expected at the end of April.  

“It was considered the last Cabinet meeting,” Jayawardena said, adding that the ministry was expecting Cabinet approval this week.

In addition to the power purchases, the CEB has also invited all bulk consumers who have generators to generate their requirements in exchange for a payment from the CEB. 

“That is a self-generation scheme and it is one of the initiatives to meet growing demand during this particular period,” Jayawardena said.

He added that the project had already been implemented and that the CEB was currently laying down the groundwork through activities such as metering and measuring.