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Using gas turbines instead of hydro: CEB incurs Rs. 2.44 b loss in March  

11 Apr 2021

 

  • Decision based on dry weather: CEB Chair 

  • Sum incurred ‘normal’ during dry weather   

    The Ceylon Electricity Board (CEB) has incurred a massive loss to the tune of around Rs. 2.44 billion during the course of the last month (March 2021) alone due to the usage of gas turbines (GTs) to generate electricity instead of hydropower, The Sunday Morning learnt.  It is learnt that two GTs at the Kelanitissa Power Station, specifically GT1-6 (small turbines) and GT-7, had been operated continuously during 1, 5, 8, 15-19, and 21-26 March, and on 2-12 and 19-31 March, respectively, while there was an excess load of water available at the reservoirs.  As per CEB statistics, on 1 April, the hydropower capacity was at 821 gigawatt hours (GWh) storage which is 68% of the total reservoir capacity, which is also above the capacity during the same period last year.  Speaking to The Sunday Morning, energy analyst Dr. Vidhura Ralapanawe said that there was no necessity for the CEB to run expensive gas turbines as there was an adequate stock of water in the reservoirs last month.  When queried as to whether the situation had arisen due to the ongoing dry weather condition, Dr. Ralapanawe explained that the country actually had enough water capacity, even higher than last year.  “The demand in 2021 has been approximately 5% lower than 2020 (when considering the pre-lockdown period),” he added.  “An amount of more than 50,000 megawatt hours (MWh) generated through GTs could easily have been used from the excess hydro and it could still have been way above the 2020 levels. Therefore, the Rs. 2.44 billion spent on energy generation is an unnecessary expense,” he added.  As per the Public Utilities Commission of Sri Lanka (PUCSL)-approved cost calculations, the unit cost of GT1-6 and GT-7 is at Rs. 60 and Rs. 45, respectively.  “The unit cost is higher than the unit cost of diesel power plants such as Ace Power and Asia Matara,” he noted.  “The CEB also ran both types of GTs on 7 January – a total of 654 MWh – at a cost of Rs. 32 million. From 3 to 12 March, the plant was operated round the clock until it broke due to heavy vibrations. It resumed on 19 March and continues to date round the clock. During March (1-29 March), in the off-peak time (10.30 p.m.-5.30 a.m.) – where the demand is low – it saw usage at a cost of Rs. 440 million,” he noted.  “During off peak hours, other cheaper oil plants such as Ace Matara, Asia Power, etc., were not used. So, we cannot say that this is a result of trying to save water,” Dr. Ralapanawe added.  However, responding to the allegation, CEB Chairman Eng. Vijitha Herath told The Sunday Morning that the reason for utilising GTs at the Kelanitissa Power Station was in fact to save the water capacity in reservoirs during the dry weather condition.  "It was a strategic approach. If we had utilised the existing water in the reservoirs, by this time, the reservoirs would have dried up. There is a requirement to keep the reservoir levels at a certain capacity, especially during dry weather conditions," he stressed.  Explaining further, Eng. Herath noted that there was no other solution than the use of the existing GTs. "The GTs are there to be used in such situations and even if we use the GTs, no advantage is gained by any party, as those GTs are owned by the CEB," he added.  However, he denied the allegation that the CEB had incurred a loss due to the operation of the GTs, claiming that such an amount would anyway have to be spent to meet the demand during the dry period, as there aren't an adequate number of power plants in the country.   


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