Power plays

Monday, 9 January 2017 11:08 - - {{hitsCtrl.values.hits}}

As the sun mercilessly beats down, Sri Lankans are worrying of possible power cuts later in the year. The result has been continuing inconveniences to taxpaying citizens and undoubtedly, a significant impact on the economy.

Recently, the desperation of the situation was highlighted as Power and Renewable Energy Minister Ranjith Siyambalapitiya said that the Government was expected to buy up to 100 MW from privately operated generators in Sri Lanka.

That the Government is resorting to dumping funds into private businesses - at a rate of Rs. 36 per unit generated from 5.30 a.m. to 10.00 p.m. - is both reassuring and concerning. On the one hand it seems to indicate that the Government is in search of a short-term solution to a looming crisis.

On the other, it could perhaps set an alarming new precedent of the State distancing itself from the most basic public service and funnelling taxpayer money into for-profit enterprises.

Furthermore, combined with the power crisis is the broader discussion on the island’s energy policies and a debate as to whether the State should pursue coal or the more expensive but ultimately more sustainable option of renewable energy.

Influential unions within the Ceylon Electricity Board (CEB), headed by the engineers union, continue to push policymakers towards coal, insisting it is the only way for the country to avoid a looming power crisis in 2018.

These proponents ignore the potential of renewable energy and public outcry over the fallout of fossil fuels as seen in the opposition to the Sampur coal power plant.

Indulging private power operators, if pursued as a long-term solution, would require the Government to come to a more coherent energy policy and provide clear and enforceable guidelines to regulate the power generation by private vendors. The last thing Sri Lanka needs is to be held hostage by increasing costs of power or environmentally degrading methods of generation by the private sector.

The Public Utilities Commission of Sri Lanka (PUCSL) last month approved the long-term generation plan of the CEB, which covers the years up to 2034.

In it the CEB had previously stated the Sampur coal power plant would only come into play from 2021, making it clear that the absence of a second coal power plant would not be the cause behind a possible power shortage in 2018.

However, the PUCSL does agree that a power crisis is in the pipeline, brought on by increasing consumption and excessive dependence on a combination of coal and hydropower for the last decade. Everyone agrees that more investment is needed in the sector but no one can agree on what type of generation to spend money on.

The private sector may seem a decent option as a last resort. However, it is far from ideal. The world is spending heavily on renewable energy and finding its higher returns are reshaping the direction of the energy industry for decades to come. The Sri Lankan Government should take note and follow suit.