Monday, 5 May 2014 00:00
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The weather gods bring mixed blessings. While landslide warnings are issued, a twinkle of hope emerges as consumers hope rains mean the end to the fuel surcharge on electricity bills. However, the Ceylon Electricity Board (CEB) insists that the rains are nowhere near the needed level raising more questions about Sri Lanka’s energy policy.
According to the CEB, water levels at the reservoirs stood between 18% and 26% of their capacity this week but levels should be maintained at 60% to 65% to generate enough hydroelectricity and remove the fuel adjustment charge.
CEB figures show that it spent Rs. 23.5 billion to produce thermal power from January to April, Rs. 41.7 billion to buy power from private companies, Rs. 4.2 billion for coal power generation at Norochcholai and Rs. 1.8 billion for hydropower generation. Clearly water remains the cheapest option.
Sri Lanka faces an increasing demand for electricity. This has grown gradually over time where the increase in the average per capita electricity consumption from 2010 to 2012 was 14.6%. Approximately, 94% of households are provided with electricity and the Government is determined to raise this to 100%. Further, the country provides grid electricity to about 80% of households, while around 3% of households use off-grid systems. At the moment, about 40% of electrical energy is used in households, 40% in manufacturing industry and the rest in the commercial sector.
According to a recent report released by the Institute of Policy Studies (IPS), electricity generation has been in a transition from a predominantly hydroelectric system to a mixed hydro-thermal system, presently dominated by oil. Thermal power has currently become the major source of electricity generation – about 70.8%. Between 2000 and 2012, contributions from the major hydro plants have seen significant fluctuations – from a high 46% to a low 23% due to weather changes.
Nevertheless, a significant portion of electricity demand continues to be met by conventional and non-conventional renewable energy sources which include mini-hydro. But the share of hydropower is estimated to reduce from 40.2% in 2007 to 19.5% by 2020, while coal-fired thermal generation is estimated to reach 70.9% by 2020.
Furthermore, there is ample evidence to suggest Sri Lanka’s climate has already changed and hydropower cannot be a dependable source of energy. Sri Lanka’s foray into coal has also been hampered. The Norochcholai Power Plant’s repeated breakdowns as well as huge questions over efficiency, technology transfers and questionable dealings make for a poor story. Sampur has been dragging on for years weighed down by doubts.
The IPS also warns dependency on coal may also increase electricity prices and negative environmental externalities. Basically experts have warned the Government they could be jumping the gun on coal power plants while not paying enough attention to making hydropower more efficient.
Solar and wind options have been receiving less and less attention from policymakers as well. Upgrading existing hydropower may not have the same publicity power as opening shiny new coal power plants but it makes sense to the consumers’ wallet. It could possibly have environmental benefits at a time when depending on a finite substance such as coal will not be sustainable. Energy is at the core of development but right now it’s more a burden than a blessing.
