Ceylon Electricity Board (CEB), the incumbent utility in Sri Lanka, has started preparations to add 1,275 MW of generation capacity over the next four years. The regulator is pushing for a swift execution of new-builds to avert an energy crisis which is anticipated as early as 2018.
Public Utilities Commission (PUCSL), Sri Lanka's power regulator, has mandated CEB to build all power plants listed in the ‘Least Cost Long Term Generation Expansion Plan (LCLTGEP) 2015-2034’ for commissioning over the next four years.
Hydropower undermined by drought
Droughts have become more widespread and pronounced in Sri Lanka in recent years, not only putting locals at risk of famine but also preventing hydropower plants from operating. PUCSL director general Damitha Kumarasinghe anticipates that under drought conditions – even with planned power plant additions – Sri Lanka would have energy and capacity shortages in the years 2018/2019 and beyond.
Capacity additions, proposed by CEB, include two 170 MW thermal plants in the southern region, a 300 MW gas power plant and another a 105 MW open-cycle gas turbines plant as well as renewable energy projects with a combined capacity of 700 MW, including three major hydroelectric plants. “Failure to commission these power plants on time will cause countrywide power shortages as early as 2018/19,” Mr Kumarasinghe warned.
Tender for gas IPP underway
Sri Lanka’s government is about to put out tenders for a 300 MW combined-cycle gas power plant. International investors are eyeing the tender proceedings as an opportunity to get a foothold in the first Independent Power Project (IPP) on the island.
Installed capacity in Sri Lanka is currently 3,900 MW, but the regulator hopes that by 2020 the additional capacity will boost total capacity to 4,955 MW which would ensure a more stable supply of electricity to the national power grid.