by Ifham Nizam
Power lines… one might wonder why the CEB continues to ignore existing and readily available private power plants
The Ceylon Electricity Board’s long term generation plan in 2005 had proposed constructing six major power plants to be operational by 2016. This included a 245MW Gas Turbine in 2009, a 285MW Gas Turbine in 2010, a 300MW Coal Steam – (Southern Coast) in 2013, a 300MW Coal Steam – (Southern Coast) in 2014, a 300MW Coal Steam – (Southern Coast) in 2015 and a 300MW Coal Steam – (Southern Coast) in 2016.
However, energy experts claim none of these plants were constructed by the CEB. When the CEB finalized its long term plan in 2013 all the power plants proposed in 2005 had been disregarded.
In 2015, the CEB made a fresh long term generation plan which excluded the existing private power plants.
Examination of this plan reveals that the CEB is planning on constructing a staggering eight brand new power plants from 2017-2020 alone.
Officials questioned if it is viable to construct and operate eight new power plants within three years.
“Are they going to do it at the risk of Sri Lanka’s environment due to a lack of environmental impact studies, without feasibility studies or even considering the procedural competitive funding sources.
The whole process of implementation alone takes two to three years with commercialisation (including construction) being 2 to 3 years.
The Norochcholai Coal Power Plant was initially considered in the late 1980’s with construction beginning on 11/05/2006 with the first 300MW unit commissioned on 22/03/2011.
“Where is the logic behind building 8 new power plants within three years? Norochcholai is a good example.
Another example is the Broadlands Hydro Power Plant, first considered in 1984 and then implemented in 2013 with the inauguration ceremony in July 2013; still we are at the start of the plant’s construction,” sources said.
As impractical and unrealistic as this plan is, one might wonder why the CEB continues to ignore existing and readily available private power plants.
“Given the depleting state of hydro reserves in the island in addition to an impending drought – should not both the Public Utilities Commission (PUCSL) and the CEB consider existing plants that can be activated, to supplement the deficit, rather than search for a solution in the dark, during a power shortage as experienced time and time again,” sources added.
Furthermore, while the rest of the world has come to terms that coal power generation is rather archaic, the CEB seems convinced that their coal solution is the solution to an impending power crisis.
They seem to have conveniently overlooked the negative implications coal possesses on agriculture and tourism, predominant industries for the future of the country.
“Moreover, as impractical as the construction of 8 new power plants before 2018 may be, why have existing private power plants not been considered in the LCLTGEP 2015 – 2034 (Long Term General Plan). Have they not proved their worth in the past stepping up to the cause of keeping the country alight during one of the worst power shortages to grip the island in early 2000’s.
Will not the re-commissioning of these currently redundant plants, in fact help CEB meet the power supply requirement and cut down on unnecessary spending/ borrowing. According to the plan, the 100MW Ace Power Embilipitiya is to be retired in 2017 and the 30MW Northern Power to be retired in 2020. The plan also excludes the 24MW Ace Power Matara, which can be converted to natural gas at a later stage and remains in good running condition. The CEB unions have also expressed its support for this plant to run again,” sources added.
Sources also questioned if the public can be expected to bear the burden of funding these unrealistic plans of the CEB.
As unrealistic and impractical as this plan is, it is also one which discourages private enterprises and foreign investment.
Take for example renewable energy which was implemented in 2008. Approximately 300 private enterprises are waiting for approvals to commercialise 2MW to 10MW of renewable energy power plants since 2008 with the CEB sitting on their approvals.
The most renewable power generation plants cost approximately US$1.2M per MW. With an average plant being 5MWs that’s approximately US$1.8 Billion worth of investment shunned away from the country.
The power sector, which is considered the life line of a nation, should be progressive, realistic and forward thinking in generation planning.
“Should the planning burden be eased off the CEB by the establishment of an independent planning team equipped with the knowledge of engineering, finance, environmental impact, economics and other related disciplines? Should there be not a private sector mix in the power generation sector that takes off the burden of investing public funds to the sector but benefiting from generating higher skilled workforce, corporate tax revenue and with financial penalties associated if the privately held plant fails to provide the required power when needed,” sources added.
Separately the Asia Development Bank in June, 2016 identified key problematic areas in the nation’s energy sector highlighting a poor Transmission network, Distribution failures and inappropriate generation mix.
Due to the unrealistic timeline of building new plants and forgoing in running the existing private power plants to meet a pending power crisis as identified by the PUSL in 2018, the CEB has its own ulterior motives behind the LCLTGEP in failing in order to enact an ‘Emergency Power’ policy in fast tracking their own independent viewpoints similar to what occurred in 2001. If the country has a realistic generation plan, the aspect of Emergency Power will not occur.
A well balanced adoption of existing plants together with a moderate adoption of natural gas (LNG) and a focus of Renewable Energy will be a good balance to avert Power crisis and promote least cost long term power generation for the country.
The mix should include private and CEB generation without creating a single dominant generator that can affect the progress of the country.
The mix should include the existing coal, new natural gas (LNG), renewables as well as diesel.
Sources also said that there has been a common misconception regarding Independent Power Producers (IPPs) in Sri Lanka with them being labelled as the ‘diesel mafia’.
“The reality of this accusation is that IPPs have assisted in providing a stable service to the country in times of crisis. We can name the crisis of 2000 as a good example with no power cuts till IPPs were retired from 2012, 2014 and the most recent March 2016 with Ace Power Embilipitiya (100MW) coming to the rescue in stopping any sale of the plant and quickly getting it to run,” a private power distributor said on the condition of anonymity.
Brief operational details of the privately held retired plants (retired IPPs)
Ace Power Embilipitiya
Capacity: 100MWs
Manufacturer: Caterpillar
Staff: Approximately 80
Tax paying: Yes, corporate tax
Ace Power Matara
Capacity: 24MWs
Manufacturer: Wartsila (Finland), plant can be converted to using natural gas when available
Staff: Approximately 30 when operational
Tax paying: Yes, but no operations since 2012
Northern Power
Capacity: 30MWs
Manufacturer: Mix
Staff: Approximately: 50
Tax paying: Yes, corporate tax