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Hydropower hit by drought: CEB to extend PPAs with PPCs

07 Mar 2021

  • Urges commissioning of ‘proper’ power plant

  The Ceylon Electricity Board (CEB) will extend the existing power purchasing agreements (PPA) with private power companies (PPC) which are set to expire in April, in order to manage the existing demand with the reduction of hydropower generation due to the ongoing dry weather conditions. Speaking to The Sunday Morning, CEB Chairman Eng. Vijitha Herath stressed that the proposal had been sent to the Public Utilities Commission of Sri Lanka (PUCSL) and that cabinet approval would also be sought immediately. “We are not going to purchase emergency power but an extension to existing PPAs,” he stressed. However, the Cabinet last year rejected the proposal submitted by the Ministry of Power to obtain approval to extend existing power agreements with three PPCs to purchase around 170 MW of emergency power. The proposal has been submitted to the Cabinet to extend the purchasing agreements with Ace Power Matara, Ace Power Embilipitiya, and Asia Power Sapugaskanda which will be terminated in April and June next year. The three agreements are to supply a total of 170 MW to the national grid. However, the Cabinet has approved 130 MW of supplementary power. He said that purchasing electricity from already existing diesel power companies would reduce the expenditure rather than going in for new companies. “The tariffs are lower than the current rates. We purchase electricity for around Rs. 23 while it will be increased by around Rs. 10, if we go with new companies,” he added. When queried as to whether the extension of the PPAs is necessary, Eng. Herath stressed that if we don’t extend the agreements, the CEB would have no option but to impose power cuts. The CEB Chairman also noted that the system is at great risk, as half of the total energy requirement is fulfilled by the Norochcholai Coal Power Plant. However, the CEB is confident that it could manage the situation with the upcoming Uma Oya, Broadlands, and Mannar power plants scheduled to be connected to the national grid, together with the ongoing solar power projects, until a proper power plant is commissioned.


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