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| Sunday, 25 September 2005 |
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Dendro to add 100 MW to national grid by 2010 by Gamini Warushamana Cabinet has approved the Dendro electricity expansion Bill which targets to add 100 MW to the national grid by 2010. The paper presented by Minister of Power and Energy Susil Premajayantha proposed an extensive plan to increase Dendro thermal generation and extend fuelwood plantation. Dendro is one of the most successful renewable energy sources which is becoming increasingly popular as an alternative to the high cost of petroleum thermal energy. The government has declared Dendro as a long-term alternative to the power crisis in the country. A cabinet paper passed in August approved to promote Geniseria, the most popular fuelwood used in Dendro power generation as the fourth national plantation crop. The private sector will play a major role in Dendro power generation. The Bill proposed numerous incentives to investors in the industry. The Ceylon Electricity Board (CEB) will purchase electricity for the national grid at Rs. 8.50 per unit during the first seven years when the investor recovers his investment and thereafter at Rs. 7. The government will also provide low interest loans and donor assistance to investors. A national policy for alternative energy will be formulated. The government has set up an inter-ministerial task force to monitor and coordinate the implementation of the proposals. An energy fund will be set up for research and development in Dendro power generation and fuelwood plantation. It will be funded by the treasury. The paper outlined plans to use Dendro for rural electrification and establish off-grid power systems in rural areas. It is expected to provide electricity to 1.5-3 million rural households through the off-grid Dendro plants. It also proposed Dendro as sustainable source of electricity in industrial uses. "Dendro is the best and cheaper energy source for most rural industries including plantation industries such as processing tea, coconut and rubber. In addition we have successfully implemented Dendro power, gas and heat energy systems in lime and brass industries, Chairman of the Energy Conservation Fund M.A. Warnakulasooriya said. Today several Dendro power plants are being operated by private investors successfully. Lank Transformers Limited operates a 1MW Dendro plant in Walapane. |
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