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| Sunday, 3 March 2002 |
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Features |  |
| News Business Features Editorial
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While the sun shines.... by Tharuka Dissanaike
It takes daily black outs to open the public's eye and mind. What are the alternatives? Where are the less wasteful, less costly and more environment-friendly methods of making electricity? The recent commissioning of a 25 kw solar power generation, supplying the national grid was one such eye-opener. For the first time in the country, the grid was fed by a solar power unit- a grant of US $ 125,000 to Worldview Foundation by NORAD of Norway. The six panels, hoisted on the roof-terrace of the Worldview Global Media building in Battaramulla, will daily supply the grid with roughly 25 kilowatts of electrical energy. The Foundation hopes very soon, to increase this output to 100 Kw. But in the larger perspective, developing solar for commercial power sale does not look viable. The high price of capital investment and the low-purchasing price offered by the CEB are both deterrent to developing solar as a commercial venture. Where minihydro plants have now become successful in making profits from small-scale run-of-the-mill plants, solar has a long hurdle to cross before it makes financial sense for private enterprise to invest in solar farms. "The initial cost is just too much," says M.C. Wickremasekera Ceylon Electricity Board's Deputy General Manager, Private Power projects. "Private companies cannot hope to recover their initial investment in solar by selling power to the grid." Worldview's solar supply is paid on the same tariff used for small hydros. This tariff defines a dry and wet period for the year and pays Rs. 5.30 a unit during dry weather and Rs. 4.91 a unit during rain. But generating solar costs as much as six times this sale price. "Since this is a grant from NORAD and was specifically for the national grid, the Foundation is not carrying losses," said Ranjan Jayawardane, Project Manager at Worldview. Despite the keen interest in generating 'clean' energy from the sun over the last decade, solar panels still come at a high cost. In many countries, especially in Europe there are subsidies and favourable tariffs to encourage solar power generation. "Despite its non-suitability as a private power enterprise, solar is ideal for stand-alone systems," said Wickremasekera. "Especially in areas where the grid has not reached, solar is a viable option." This view is endorsed by Ravi Dissanayake of DFCC Bank. His work in the World Bank funded Energy Services Delivery Project (ESD) has seen many a remote village being 'electrified' by solar, through special loan schemes and promotional projects. The project, which concludes this year, began with a target of 15,000 households to receive solar power. By now, the number has reached 15083, with the most number of solar-lit households in the Moneragala district. Kurunegala, Badulla, Anuradhapura and Ratnapura are among the top districts where solar power has caught on for domestic lighting. The solar panels cost in the range of Rs. 35,000 - Rs. 70,000 depending on the amount of electrical power generated. The consumer is allowed to pay back the initial investment in monthly instalments over a six-months to a year period. Meanwhile they can enjoy the benefit of 'free' electricity to run a few lights, a television and a radio. "In our opinion, solar power is ideal for rural homes that are far out from the grid and where it is not economical for CEB to extend supply," Dissanayake said. The entire focus of the ESD project was to take renewable energy options to those producing energy for the grid and off the grid. Micro-and-mini hydros and solar power received special attention under the project. But does solar power have a better future than the rather dull option of lighting up rural homes until they receive grid supply? Worldview Foundation certainly think so. "Solar is the energy of the future. The cost-effectiveness of solar has to be worked out, counting in its obvious environmental benefits," said Arne Fjortoft, President of Worldview Global Media. "The amount of carbon dioxide saved by producing solar energy should be factored in to the benefit." For the Foundation, this pilot project to test the viability of solar generation to feed the grid is just a start. "We think that the government should make available duty-free concessions for those who want to invest in solar," said Ranjan Jayawardane. "Certainly in areas where the grid is not extended and will not be extended in the foreseeable future, the CEB should encourage solar stand-alone systems. But the CEB should also develop a more promising tariff structure to encourage solar and other renewable energy sources." Jayawardane said that it was very difficult at first to convince the CEB of the project. "They were very apprehensive of the idea, especially since we were trying out a totally new concept. But after they agreed to test it out as a pilot project, the CEB was very cooperative." CEB's Wickremasekera contends that the Board is now looking very keenly at environment-friendly generation. "We are looking very positively at wind and bio-mass energy, including power generation from urban garbage. We are strongly encouraging environment-friendly options but they should be at the correct price." Meanwhile, solar power can be considered as a long-term option for street lighting, electrifying traffic lights and street signals - since these public facilities consume a fair amount of power and also because black-outs can result in dead signals and lights, which is a grave road safety issue. |
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