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Impending power crisis: What happened to Kelanitissa? 

16 Jan 2021

[caption id="attachment_114343" align="aligncenter" width="693"] The Kelanitissa combined power plant has been shut down since June 2019[/caption]
  • 165 MW unit of Combined Cycle Power Station defunct since

  • 2019 Delay in restoration due to failure in procuring broken part  

      Controversy surrounds the delay in restoring the 165 MW unit of the Kelanitissa Combined Cycle Power Station, which has been inactive since October 2019 due to mechanical issues, resulting in parts being sent abroad for repairs.  According to energy experts, the plant should have been restored several months ago, and over a year being taken for its restoration is unacceptable under normal circumstances. The delay has also been criticised by experts as “criminal negligence” of the Ceylon Electricity Board (CEB), as it attempts to secure more emergency power by further extending power purchasing agreements (PPA) with several private power companies (PPC) to avoid a possible power shortage.  The CEB has completely neglected their own power plants, and instead of using existing resources, they are focusing on going ahead with expensive diesel power, Energy Expert Dr. Vidhura Ralapanawa stressed.  He told The Sunday Morning that the Kelanitissa combined power plant is the largest thermal power plant owned by the CEB, which generates cheaper thermal power as it runs on furnace oil, which is cheaper than diesel oil.       Opting for costlier alternatives “This power plant has been broken and shut down for repairs since June 2019. The CEB is yet to restore the 165 MW to the national grid,” he said, alleging that instead of repairing the Kelanitissa plant, the CEB has been struggling to secure emergency power.  “One of the parts that have been broken in the power plant has not been procured on time, and as a result, the restoration work has also been delayed. The order had been placed somewhere around May, around six months after the plant was broken,” Dr. Ralapanawa said.  According to him, the delay in placing the order resulted from a VAT dispute.  He also stressed that there are two turbines in Kelanitissa, one of which was shut down for a major overhaul in June last year. “However, when they brought the system up somewhere around November, the water blade of the plant was broken down. The water blade has to be brought down from France,” he said.  Accordingly, questions arose as to when the CEB placed the order, when the order came down to the country, and why the plant still hasn't been restored.    The Kelanitissa plant has a 20-year PPA with the CEB and a 20-year fuel supply agreement with the Ceylon Petroleum Corporation (CPC) until 2023.  The Sojitz Kelanitissa Power Station (also known as Sojitz Power Station, and AES Kelanitissa Power Station), is a privately-owned 172 MW diesel-fired combined cycle power station. It is owned by Sojitz Kelanitissa (Pvt.) Ltd., a subsidiary of Sojitz Corporation. The power station is located adjacent to the Kelanitissa Power Station, which is a separate government-owned power station.  The power station consists of two generation units, a GEPG9171E gas turbine with a nameplate capacity of 115 MW, and a 57 MW steam turbine manufactured by Bharat Heavy Electricals Ltd. The construction was done by Larsen & Toubro.  Power generated by the power station is sold to the CEB under a 20-year take-or-pay power purchase agreement. The low-sulphur diesel is supplied through an existing pipeline by the CPC, with 20,000 tonnes, or the equivalent of 28-days of full capacity operations, stored in case of any fuel shortage. The plant’s 20-year contract ends on 10 October 2023.  The economic analysis for the project was conducted in accordance with the Asian Development Bank (ADB) guidelines.   This analysis covers the period from the start of construction in 2001, with the commissioning date of 2003, and up to the end of the concession in 2023. All values are adjusted to reflect 2003 prices, since 2003 is the year of the commercial operation date.  Forecast data from 2011-2023 was adjusted to real terms using the 2.40% US inflation forecast utilised in the 2011 financial model.  The combined cycle power plant was built at a total cost of Rs. 10,616 million, of which Rs. 9,200 million (¥ 13,481 million) was obtained from the Government of Japan through the Japan Banking International Corporation (JBIC) as a soft loan, while the remainder was borne by the CEB.  Engineering consultancy services were provided by Lahmeyer International of Germany and Chuo Kaihatsu Corporation of Japan – two highly-renowned engineering consultancy firms.  The CEB engineers worked as counterparts to the consultants in fulfilling the engineering consultancy aspect of the project. The turnkey project contract was awarded to a consortium of Marubeni Corporation of Japan and Alstom Power Centralles of France.    Hampered by circumstance However, during an inspection tour of the power plant last September, Power Minister Dullas Alahapperuma instructed officials of the Kelanitissa power plant to restore generation activities within the next few weeks.  According to him, the main reason for the delay was that some parts of the plant had been sent to India for repairs due to a mechanical fault, and the machines had not been repaired due to the global Covid-19 pandemic.  Minister Alahapperuma said that steps would be taken to repair the malfunctioning machinery of the power plant and bring it back to Sri Lanka as soon as possible. Nevertheless, as learnt by The Sunday Morning, the plant is still not online.  When contacted, CEB Chairman Eng. Vijitha Herath also noted that the reason for the delay was due to the ongoing Covid-19 pandemic situation, although one of the units had been restored, while the CEB is waiting for the repaired parts to arrive from India with regard to the other unit.  “There are delays due to the shipment issues,” he said.  Once the parts arrive, the Kelanitissa plant will be restored and will add 165 MW to the national grid, Eng. Herath told The Sunday Morning In the meantime, when contacted, CEB Deputy General Manager (Generation) Anura Herath reiterated that the board was waiting for the repaired parts to arrive in the country to complete the repairs.  Meanwhile, according to the CEB’s Long-Term Generation of Energy Plan (LTGEP), the 3x35 MW Gas turbines at Kelanitissa are considered a committed project. A 300 MW dual fuel combined cycle power plant was identified to be commissioned by 2019 in both LTGEP 2015-2034 and LTGEP 2018-2039. The project was planned to be constructed in Kerawalapitiya on a BOOT (build, own, operate, transfer) basis.  After receiving the commission approval for LTGEP 2015-2034 in September 2016, the tender process was initiated for a 300 MW dual fuel combined cycle plant by CEB in November 2016.  However, the contract has not been awarded yet, and implementation of this power plant is already delayed. Hence, the earliest possible commissioning year was considered to be 2022.  Due to the non-implementation of low-cost power plants as planned in the system, high-cost supplementary power is to be procured to overcome shortages as a stop-gap measure.  The contract of the 163 MW Sojitz Power Plant at Kelanitissa will expire in 2023, and it will be operated as a CEB plant until 2033.    Photos CEB

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