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By Charumini de Silva
The Ceylon Electricity Board (CEB) has called for proposals from the private sector for the setting up of 75 kilowatt (kW) solar power generation plants on a ‘Build, Own and Operate’ (BOO) basis with power purchase agreements (PPAs) spanning 20 years.
The move is part of overall measures by the Government to enhance renewable energy sources to cater to the country’s energy demand.
At present Non-Conventional Renewable Energy (NCRE) accounts for 11% of total energy production with the goal being to increase it to 40% by 2030.
Cabinet in February approved the latest solar power enhancement for implementation within 18 months as an accelerated project. Bids have been called by 24 May.
The project aims to generate renewable electricity by connecting ground-mounted solar power plants for 7,000 power distribution transformers owned by the CEB. All nine provinces are covered under this project.
Private sector proposals have been sought to design, procure finance, construct, and commission, operate and maintain the solar PV power plant, as well as associated equipment and services. Plants will have to be constructed in private land only, and the location or part of the land should be located within 400 meters of aerial distance from the substation to be connected.
Prospective investors should also meet the entire cost of grid interconnection of the solar PV power plant, including low voltage aerial bundle conductor circuits, and protection, metering and remote operating equipment, whilst securing all environmental clearances, Government approvals and statutory licenses.
The investors also need to enter into a PPA with the CEB for the supply of electricity (energy only) from the solar PV plant, and the terms of the PPA will have to be for 20 years from the start of the commercial operation.