• 5 cargoes scheduled to secure uninterrupted power generation through Sept.

Unloading of the first of five coal shipments under the emergency tender has commenced as part of a contingency strategy to ensure uninterrupted electricity generation, authorities said last week.

This, as the Government scrambles to secure stocks as deteriorating sea conditions are expected with the onset of the southwest monsoon.

Although the Government is confident that all shipments under the emergency coal tender will arrive within the expected timeframe, the successful execution of this plan is essential to preventing future power outages, according to Ministry of Energy Secretary G.M.R.D. Aponsu, who outlined the primary objective of the emergency procurement.

“The timely discharge of these shipments is critical to maintaining national energy security during the coming months. Upon completion, we are confident that stock levels and coal inventories will remain sufficient to sustain uninterrupted power generation through September,” Aponsu stated.

“The emergency procurement is specifically designed to ensure continuous operations at the Norochcholai coal power plant through September, a period during which fuel supply logistics become increasingly constrained due to adverse weather patterns.”

The emergency coal tender was launched to address a potential shortage caused by failures in the previous 2025–2026 procurement, where substandard coal supplied by Trident Chemphar Ltd. fell below required calorific values and included several rejected shipments. The poor-quality coal reduced efficiency at the Lakvijaya Power Plant, forcing higher consumption and increasing risks to equipment due to elevated ash content.

To stabilise operations, new cargoes are being procured under tight timelines, with unloading required before rough monsoonal sea conditions from late May to August cause disruption to lightering activities.

Providing an update on the delivery schedule, Aponsu confirmed that operations were already underway.

“The first emergency shipment has already arrived and unloading is currently in progress. The delivery schedule remains tightly coordinated with three shipments already at port and additional vessels expected in sequence. We expect the second cargo to arrive on schedule, and since each vessel takes roughly five days to discharge, operations are being scheduled accordingly to maintain continuity,” he claimed.

Addressing concerns regarding the quality of the expedited coal, the Ministry Secretary dismissed suggestions of reduced standards.

“There has been no compromise in standards despite the expedited conditions. Quality assessments have been completed and both the test results and energy output parameters, including those regarding ash content and plant efficiency, are well within acceptable limits,” he noted.

He acknowledged that environmental challenges could impact activities during the monsoon season.

“There is an inherent risk due to the strong winds and rough seas of the southwest monsoon, which significantly complicate offshore unloading operations. However, barge operators have committed to supporting these operations, and we intend to proceed with our calculated exposure and the full unloading plan, undertaking that risk,” Aponsu said.

To protect against potential financial liabilities associated with weather delays, specific clauses have been included in the agreements.

“Contractual safeguards have been built into the procurement framework to mitigate financial exposure from the possibility of delays, demurrage, or penalties incurred when vessels are held beyond agreed discharge timelines. The cost structure accounts for potential delays, which would attract charges, while quality-related deviations would result in penalties. These are contractually enforceable, supported by performance bonds and other securities. At present, there have been no issues, and even advance payments have not yet reached the 80% threshold,” he explained.

The Ministry Secretary also expressed optimism regarding supplier reliability: “We expect all remaining spot tenders to be fulfilled on time, and we are confident that suppliers will adhere to delivery schedules for the remaining shipments. There are no issues at this stage.”

According to Aponsu, the ministry is utilising past operational successes to guide the current unloading timeline.