Sri Lanka's goal:

Self-sufficiency in power by 2011

By Shirajiv SIRIMANE

President Mahinda Rajapaksa commissioning the Yugadanavi Combined Cycle Power Plant at Kerawalapitiya

Sri Lanka was a nation which was notorious for having Asia's highest electricity tariff. However, it's ready to break out of this cycle and what's more be in a position to even export electricity in less than two years. The country's Public, which is used to paying 'extra' for

everything, will soon find that they would be paying less for electricity.

The secret is the commissioning of mega power generation projects which had been on hold for decades. Kotmale, Sampur and Norochcholai are some of these projects which are now nearing completion. In addition to the controversies these projects had generated, funds too had been a grey area and today they too have been sorted out.

The Kerawalapitiya power generation project was first planned in 1990, but was kept on hold for nearly a decade until a decision was taken three years ago to fast-track this project.

International tenders were called for and since they were expensive it was decided to award the construction of the Kerawalapitiya power-generation project to a consortium of local engineers. It was to be constructed as a government/private sector joint venture.

The local consortium first decided to do away with the use of diesel and decided on using heavy furnace oil, which is 60 percent cheaper than diesel thus making the project more viable.

The contract was awarded to Lanka Transformers Ltd. (LTL), a subsidiary of Ceylon Electricity Board. Thirty percent of the funding came from the Government via National Savings Bank, EPF, LECO and LTL. The total cost of the project was Rs. 3.4 billion and 70 percent of this was borrowed from international parties.

In less than two years, the first phase was completed, adding 200 Mega Watts to the national Grid. The second stage too was commissioned, to add 100 MW, early this year. Of the 300 MW of power, 200MW are generated using furnace oil and the balance 100MW are generated using steam emanated from the plant. Conserving the environment was one of the priorities of the engineers and several meaningful steps were taken in this regard. The kiln which disperses the smoke was built to a height of 80 metres minimising the impact on the environment. Chief Operating Officer (COO) of the project, Nuhuman Marikkar said that the Central Environmental Authority has endorsed that the emission level of the project is lower than what is expected.

Local engineers

The local engineers also decided to use sea water for cooling which is considered to be one of the unique features of the project. A special process was introduced for desalination and local engineers have also ensured that the water which goes back to the sea is not too warm to upset the sea's ecological pattern in the area. "Introduction of sea water for cooling for a plant of this nature is a first for the region," he said.

The commissioning of this plant will considerably reduce the country's dependence on diesel for generation of power. The steam which will be a byproduct from the first phase operation of the plant will have no bearing on the production expenses.

Marikkar says that the project can be in operation for nearly 50 years. This is an investment made towards economic development at the right time, he said.

Minister of Power and Energy Patali Champika Ranawaka visiting the site. The Kerawalapitiya power-generation site

He said the building of these plans would help the country do away with power interruptions in the future, a feat even other countries in the region could not carry out. In addition, since the cost of power generation is less than for diesel, the public is assured that there would be no high electricity tariff in the future.

"The more the country moves away from diesel power generation, which is now at 18 percent, the bill the customers pay would be less," he said.

Currently, furnace oil is transported to the project in bowsers. Construction is now under way to lay a pipeline from the deep sea, four kilometres out of the Kerawalapitiya plant, so that ships could unload furnes oil direct to the plant.

"This, on the long run, would be a saving on transport and labour," he said.

This pipeline is expected to be ready by the end of January. Today 40 percent of electricity is generated via hydro power and 18 percent is from diesel power, which costs the country Rs. 18 per unit.

The Kerawalapitiya power plant is currently in a position to manufacture a unit of electricity for less than Rs. 16.

Selling power to Tamil Nadu

Coal power generation costs around Rs. 10 per unit. Unfortunately, only 10 percent of the requirement will be generated this way via the plant in Sampur.

The project will generate 500MW in the first phase and another 500MW under the second phase.

The project will be a joint venture with India and was delayed due to disputes over the site location. The Rs. 5 billion project will see the Asian Development Bank providing US $ 350 million under a 40-year loan while Sri Lanka and India will both invest US$ 75 million each.

Tamil Nadu is the 11th largest State in India by area (about the size of Greece) and the seventh most populous State.

It is the fifth largest contributor to India's economy and the most urbanised State in India. The State has the highest number (10.56 percent) of business enterprises in India, compared to the population share of about six percent. Tamil Nadu is severely affected by power shortages.

Under-sea power line

One of the unique and historic features of this project is its plan to sell Sri Lankan electricity to India. Planning is now being done to lay under-sea transmission lines from Anuradhapura to Talaimannar and from Talaimannar to Rameswaram (India). This would be a 45km stretch.

The Board of Investment has granted approval to an Indian investor to invest US$ 18.55 million to build a 10 mega watt wind power plant in north-western Sri Lanka. The project is expected to commence operations by June 2011.

The private sector is also being encouraged to set up small-scale power projects using renewable energy technologies to minimise the dependence on oil and gas.

With these development projects in the pipeline Sri Lanka is planning to make the country self-sufficient in power, within the next 10 months although it was earlier targeted for 2012.