Small power developers to add 400MW to national grid

The Grid Connected Small Power Developers Association (GCSPDA) completed connecting 100MW to the national grid which is 3.5 percent of the country's electricity requirement saving over Rs. 3,000 million per annum through an indigenous industry.

President GCSPDA, Dr. Nishantha Nanayakkara said the 100MW power generation is a huge saving on foreign exchange since the capacity yields over 300 million units of electricity per year. Each unit of electricity generated through the indigenous plants is a saving to the country which would otherwise have to import increasingly expensive thermal power.

Today a unit of electricity generated by small hydro power plants costs the Ceylon Electricity Board (CEB) Rs. 6.05 which is more profitable than having to spend Rs. 15 to purchase a unit of diesel based thermal power. If the CEB has to bear such enormous costs added to the losses it incurs due to mismanagement and inefficiencies, it is the poor consumer who would have to pay for it, he said.

The GCSPDA target to generate 400MW by 2010 is an increase of 300MW from the current capacity and three times more than the Upper Kotmale project.

Small hydro power developers are confident they could achieve this target provided there is a sound national policy in place with a better tariff structure that would benefit all. It is only a win-win scenario that would encourage small hydro power developers and the industry to boom, he said.

The GCSPDA said 400MW generated through small hydro power plants will provide renewable electricity to over 1.5 million rural households and save the country over US$ 100 million in foreign exchange per annum. The 400MW will generate over 1.4 billion units that could be used to prevent a shortage of power supply before the large scale coal and hydro power plants are in operation by 2010.

The GCSPDA invested over Rs. 10 billion to generate 100MW. The cost of constructing small hydro power plants depend on the location and certain plants could be costly. That is why the Government has redefined the tariff structure as cost based, Nanayakkara said.

The renewable source of energy is one of the most environmentally friendly technologies in the world. The contribution made by the small hydro power industry towards regional development is in line with the Mahinda Chintana.

The first small hydro power project commenced in Dick-Oya in 1996.

The industry has come a long way since then making a significant contribution towards infrastructure development. Sri Lanka's small hydro expertise has gained international recognition and the World Bank rates the industry as a model, he said.

Sri Lanka has to take the cue from countries such as Germany, Japan and China which have made maximum use of natural resources for power generation. In Japan every house needs to be solar equipped according to law. China has the largest hydro power plants with room for further expansion.

LF