• Oil-fired generation rises to 26.2% of power mix
• Fresh 60,000 MT coal shipment arrives in Puttalam 
• Minister rules out power cuts, expects generation to normalise 

Sri Lanka’s coal-fired electricity generation dropped to just 11.7% of the country’s total power generation as of Thursday (3), as declining coal stocks forced authorities to restrict generation at the Lakvijaya Coal Power Plant in Norochcholai.

Since January, The Sunday Morning has reported on the looming coal shortages in the wake of the substandard coal shipments scandal, which saw the then Minister of Energy resign. The matter is now under investigation.

The latest daily electricity generation statistics show a significant change in the country’s generation mix, with coal – normally a key source of baseload electricity – contributing only around one-tenth of total generation.  

In comparison, hydropower accounted for 33.7% of electricity generation on Thursday, while oil-fired thermal generation accounted for 26.2% and solar power contributed 21%.

The figures show that the contribution from oil-fired generation was more than double that of coal during the day, as the electricity system compensated for reduced output from Norochcholai.

Total net electricity generation on Thursday stood at 58.08 gigawatt-hours (GWh), while gross electricity generation amounted to 59.26 GWh. Auxiliary consumption was recorded at 1.18 GWh.

The decline in coal generation comes amid reduced coal stocks at the 900 MW Lakvijaya Power Plant, which prompted authorities to curtail output in order to conserve the remaining stocks until fresh supplies reached the country.

Minister of Energy Anura Karunathilaka acknowledged that the reduction in coal stocks had resulted in limited generation at Norochcholai.

However, the Minister maintained that the reduction in coal-fired generation would not result in power cuts, as sufficient hydropower was currently available to meet the shortfall.

Karunathilaka said that coal-fired generation would return to normal once fresh coal consignments were unloaded and made available to the power plant.

According to him, the immediate pressure on coal supplies is expected to ease following the arrival of a fresh shipment in Puttalam on Friday (4).

The coal carrier IVS Trader, carrying approximately 60,000 MT of coal, arrived in Puttalam on Friday, with the authorities moving to commence unloading after completing the required quality inspections.

Karunathilaka visited the Lakvijaya Power Plant on Friday morning to inspect the prevailing coal situation and said that the plant had sufficient stocks to continue operating over the next few days.

The Minister subsequently expressed confidence that there was little risk of power cuts due to insufficient coal stocks, stating that arrangements were in place to ensure a continuous supply of coal to the country’s only coal-fired power station. The approximately 60,000 MT consignment that arrived on Friday is a replacement for an earlier shipment that was rejected due to quality concerns under an emergency coal procurement process.

Meanwhile, the first shipment under the new procurement arrangement for the 2026/’27 coal season is expected to reach Norochcholai by 12 September.

The Government has completed procurement for 2.28 million MT of coal, subject to a 10% variation, for the 2026/’27 period.

The latest generation figures nevertheless underline the impact the temporary coal supply constraint has had on the country’s electricity generation mix.

As learnt by The Sunday Morning, the increased dependence on oil-fired generation is significant because prolonged substitution of coal generation with oil-based thermal power could increase overall electricity generation costs. For the moment, relatively strong hydropower generation has provided the national grid with sufficient capacity to compensate for the reduction in coal-fired generation.

The arrival and unloading of the new coal shipment, followed by the next consignment expected on Saturday (12), would therefore be critical to restoring normal generation levels at Norochcholai and reducing the country’s temporary dependence on oil-fired electricity generation, a senior official attached to the National System Operator (NSO) told The Sunday Morning.