PUCSL raps CEB over failure to present long-term generation plans

Friday, 8 July 2016 00:25 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

The Public Utilities Commission of Sri Lanka (PUCSL) yesterday issued a directive to the Ceylon Electricity Board (CEB) to present its long-term generation plan to the regulator by 1 August, warning repeated delays could result in the country being pushed into a power crisis.

The letter sent by PUCSL Chairman Saliya Mathew to the CEB recalled that the regulator had sent a letter dated 28 December 2015 for the CEB to submit its Least Cost Long Term Generation Expansion Plan which covers Sri Lanka’s power policy from 2015 to 2034 to along with necessary amendments. However, the plan is yet to arrive at the PUCSL.

“The commission has observed that under drought conditions, even with planned plant additions, Sri Lanka is envisaged energy and capacity shortages in years 2018/2019 and beyond,” the letter said.

“The transmission licensee’s delay in submissions could further aggravate this situation.”

Considering the possible complications from the delay the PUCSL decided to issue a directive under Condition 4 of the Transmission and Bulk Supply License. The directive calls on the CEB to submit the plan, including solutions to meet to meet the energy and capacity demanded from 2016 to 2021, to the regulator by 1 August 2016.

Several top energy experts over the last few months have called on the Government and the CEB to fast track their planning insisting contradictory policies was damaging the sector and worsening the possibility of a power crisis by 2018.

The Power and Energy Committee of the Institution of Engineers Sri Lanka (IESL) this week warned immediate action was necessary to expedite the implementation of the coal power project in Sampur insisting that Sri Lanka was in danger of going back to an era of power cuts as well as experiencing a hike in electricity prices.

Demand for power in Sri Lanka grew from just 1% in 2013 to 7% in 2015 and experts have warned demand would continue to grow. If the Government changes the proposed power plant in Sampur from coal to LNG, experts have warned it could be costly and take up more time. The plant was originally expected to be running by 2016 but is now targeted to be operational by 2020.

Changing Sampur from coal to LNGwould result in fresh feasibility studies, preparation of bankable project documents, obtain necessary approval and renegotiate agreements with the Indian Government. The change of fuel to LNG could cause electricity production costs to increase by 40-50%, engineers warned.

Renewable energy would also need to be fast-tracked and implemented through competitive bidding processes, they noted.