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Power crisis looms, again

03 Feb 2020

By Maheesha Mudugamuwa  Sri Lanka is once again facing a serious power crisis that is threatening to cripple the country’s economy if not addressed soon. In this backdrop, the Government has already decided to purchase 300 MW of emergency power from private power plants (PPP) for 30 months as a precautionary measure to avoid any future power outages during the predicted drought seasons. In a letter written to the Ceylon Electricity Board (CEB) General Manager last November, by approving the purchase of 300 MW of emergency power, the Public Utilities Commission of Sri Lanka (PUCSL) had emphasised the fact that the delays in the implementation of major generation plants in the Long Term Generation Expansion Plan of the CEB had created an unnecessary burden on customers. Therefore, the CEB was required to ensure the availability of natural gas-fired combined-cycle plants, which were due in 2019/21 before the end of its 30-month term. Furthermore, the Commission had asked the CEB to ensure timely implementation. According to CEB statistics, out of the total energy generation, 33.62% is contributed by thermal coal while 44.3% was from thermal oil, 17.04% from hydro, and 4.54% from wind. The contribution from the small hydro is zero as of last week. However, the solar power contribution was not mentioned in the energy generation statistics. The Sunday Morning learnt that all major power plants expected from 2015, as per the Long Term Generation Expansion Plan 2013-2032, were cancelled. These plants included one 105 MW gas turbine, two 250 MW units (each) at the Sampur Coal Power Plant, and a 300 MW coal power plant each for 2021, 2022, and 2023, respectively. However, during that time, as highlighted by an official attached to the PUCSL, who wished to remain anonymous, the CEB had purchased emergency power of 155 MW in 2016, 180 MW in 2017, and 320 MW in 2018. There had been no new power plants in the country since the commissioning of the Norochcholai Coal Power Plant (Lakvijaya) in 2014 and 60 MW of barge-mounted power in Colombo in 2015. In the years 2016, 2017, 2018, and 2019, not a single MW of energy had been added to the system, as a result of which the crisis had been aggravated during that period. Similarly, this year, the CEB decided to purchase 300 MW for another 30 months. Speaking to The Sunday Morning, a senior CEB engineer stressed that the commissioning of coal power plants was an immediate necessity in the entire energy sector, and if it couldn’t commission the power plants as expected, the energy crisis would be worse in the coming years. As highlighted in the Long Term Generation Expansion Plan 2018-2037, in the short-term context up to year 2023, it is observed that there might be difficulty in operating the system resourcefully due to the foreseen delays in implementation of the Uma Oya Hydropower Project and Broadlands Hydropower Project, and the withholding of the coal power project in Sampur. A severe capacity shortage has been identified by the CEB for the period from 2018-2023 and therefore, it is recommended to install 320 MW of reciprocating engine power plants during this critical period, preferably in scattered locations throughout the country as standby power plants beyond the year 2023. With regard to energy, it is apparent that coal will be the major source of power with its share reaching 40% by 2025 and 50% by 2034. However, the contribution from renewable energy power plants shall also be considerable with a share of more than 40% by 2025 and 33% by 2034. Furthermore, LNG-operated plants will initially serve up to 25 % of energy for the year 2025, even though its energy share would gradually decrease to 15% in 2034 due to the dispatching of super critical coal power plants. Division over coal Coal has always been a hot topic in Sri Lanka, where environmentalists and a section of the public vehemently oppose the commissioning of coal power plants in Sri Lanka. However, a new division has been reported from the CEB over the proposed extension to the Lakvijaya Coal Power Plant in Norochcholai. A visible division between the senior engineers at the CEB over the competitive bidding for the proposed extension of the Lakvijaya Coal Power Plant has been reported where a group wanted to go for competitive bidding while the others wanted to commission the project as a government-to-government (G2G) project without going for competitive bidding, as they think it could further delay the commissioning of the power plant. Last year, a cabinet proposal was submitted by the then Ministry of Power and Renewable Energy seeking the approval of the Cabinet of Ministers to authorise the CEB to construct the fourth 300 MW unit as an extension of the Norochcholai Coal Power Plant. It is also noted that the plant could be built using the same infrastructure in the same facility, while requesting China to provide a concessionary loan facility directly to the CEB to fully meet the project cost in order to implement the project on a G2G basis. This takes into consideration the fact that the existing three power plant units were funded by China in accordance with the memorandum of understanding (MoU) between Sri Lanka and China on comprehensive implementation of investment economic and technological co-operation signed on 4 July 2016, and the framework agreement for the promotion of investment and economic co-operation signed on 16 May 2017. Accordingly, the plan was to invite technical and commercial proposals from the China Machinery Engineering Corporation (CMEC) to build a 300 MW power plant unit (the fourth unit) as an extension to the existing power plant on an engineering, procurement, and construction (EPC) basis, considering the fact that the CMEC had carried out the construction of the existing power plant on the nomination of China. Furthermore, it was intended to direct the General Treasury to appoint a Cabinet Appointed Negotiation Committee (CANC) and Technical Evaluation Committee (TEC) to evaluate the technical and commercial proposals of the CMEC to make the recommendations to the Cabinet of Ministers. However, as expressed by the senior engineer, the commissioning of the fourth unit could go ahead without competitive bidding as the tendering process could take a longer time and as a result, it could cause delays in completing the project. “Considering the severity of the situation, it is more important to complete the project as planned,” he stressed. According to another senior engineer at the CEB, the construction of the new 300 MW unit in Norochcholai would help the environment as it would then be possible to control the operations of the other three units. “During the power crisis that developed a few months ago, the CEB couldn’t stop Norochcholai for repairs and during that time, the plant started to release sulphur dioxide and nitrogen dioxide. But now, the situation is under control with the increase of hydropower generation,” he stressed. However, when The Sunday Morning contacted Minister of Power and Energy Mahinda Amaraweera, he said he had not yet taken a decision over coal power and he would listen to both parties and decide what was best for the country.


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