Power for the masses

There is good news regarding the Ceylon Electricity Board (CEB) and power generation in Sri Lanka. The CEB, widely described as a loss making institution, has earned a profit of Rs. 205 million in June for the first time after 12 years.

Power and Energy Minister Patali Champika Ranawaka and his officials must be credited for achieving this milestone within a short period. It is not easy to overhaul an institution which has habitually recorded losses. Many had given up trying to resurrect the CEB, saying it was an impossible task.

After all, the CEB has suffered a loss each month during the past 12 years. Cumulatively, this is a staggering amount. Now the Power and Energy Ministry has changed this situation for the better. The profit is substantial, and we hope the figure will increase.

The CEB has set a fine example to all other Government institutions that routinely post losses. As Minister Ranawaka has pointed out, if the CEB maintains administrative, operational and financial discipline it would not be difficult to make the CEB a profitable institution. The same logic applies to all other Government institutions including the Ceylon Petroleum Corporation, Sri Lanka Transport Board and the Railways.

In fact, it was recently reported that many depots of the SLTB are now reporting profits after years of heavy losses. With more new and repaired buses deployed on a daily basis, the SLTB will be able to sustain its profit-oriented outlook. It is a positive trend that bodes well for the transport sector.

The turnaround of the CEB is even more significant because the availability of power is essentially an indicator of a country's progress. Sri Lanka is well on its way to supplying power to all households, including those in remote, previously inaccessible areas. This includes certain parts of the North and the East which the LTTE dominated before its defeat in May 2009.

It was a paradox that despite having one of the highest rates for power in the region, the CEB made massive losses. This was perhaps inevitable, given the excess staff, the massive bill for fossil fuels and various other factors. In the light of profitability, the CEB should address these concerns and pave the way for long-needed reforms.

The CEB has an opportunity to shine brighter in the days ahead, with several mega projects coming online. Among them are the Upper Kotmale hydropower, Puttalam wind, Norochcholai coal, Indo-Lanka power transmission/sharing project and the Kerawalapitiya combined cycle project. One major advantage for the CEB is that these projects will reduce the need to rely on diesel, the purchase of which from the CPC erodes into the CEB's profits. They will also enable the CEB to eventually supply power at a cheaper rate, from around 2013.

That is essential if Sri Lanka is to move forward rapidly to become an Asian powerhouse. Investors prefer an uninterrupted supply of cheap power. Sri Lanka has achieved the former, as blackouts are now a thing of the past. But high electricity rates for industries have the potential to keep foreign investors away. These mega power projects will help remove that impediment as well.

Being a tropical country, Sri Lanka has plenty of sun and wind. These are the ideal renewable sources of energy, as opposed to non-renewable sources of energy such as fossil fuels including diesel. It is therefore appropriate that the CEB has commenced solar and wind power projects with the help of private sector investors. For example, a wind farm now being built in Puttalam will eventually generate 10.5 MW. This may not seem like a big quantum of power, but a start has to be made. More windy locations should be identified islandwide with the intention of erecting wind turbines. And if the wind turbines and associated machinery are manufactured locally, foreign exchange too can be saved.

Solar power has another advantage in that it can provide a stand-alone power solution to remote households which may not otherwise get National Grid power due to infrastructure limitations. It is virtually impossible to 'wire' the entire country as some areas are so remote and/or inaccessible that it is not cost effective to install transformers or erect high tension power pylons. Solar power module prices have drastically dropped and the authorities can provide a concession for those who wish to rely solely on solar power. Once installed, solar power is free for life and maintenance costs are almost nil. All household equipment and bulbs can be operated satisfactorily using solar power. This can also save funds for the CEB in the long run. Again, the possibility of sourcing the solar panels from local manufacturers must be explored.

It is time that the authorities insist on building plans which have solar/biomass or another renewable source of energy integrated into the construction. If the power generation capacity exceeds a given building's requirements, the rest can be channelled to the national grid, for which the CEB can pay the operators. This is already practised in the case of many micro hydropower projects. More attention should also be paid to biomass and geothermal sources for power, though these concepts are somewhat new to Sri Lanka and South Asia. All these power sources are non-polluting, (unlike fossil fuels) which is another bonus.

The CEB should also intensify the campaign for compact fluorescent (CFL) bulbs. The authorities should weed out the many inferior CFL brands in the market and clearly identify the major SLS-certified brands so that consumers would not be duped. They should also keep pace with the latest trends such as Light Emitting Diode (LED) bulbs, which are even more durable than CFLs. They use less electricity to give better light. The only caveat at the moment is that they are more expensive than CFLs, but prices are expected to tumble over the next few years.

The CEB has got it right and it should keep up the momentum. Higher profits and cheaper power do not have to be mutually exclusive at all. The CEB's profit streak will immensely benefit the economy, but it should not abandon its primary mission of serving the consumers. They should be at the heart of the CEB. Let there be light.