Power

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Economic Infrastructure

• Power Energy

M.M.C.Ferdinando Secretary Ministry of Power and
Energy January 30, 2007
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• Power Energy

Vision
Sustainable development of energy resources,
conversion facilities and delivery systems to
enable access to and use of energy services by
the entire population, and the safe, reliable
delivery of such energy services at a regionally
competitive price, through commercially viable
institutions subjected to independent regulation
is the vision for the energy sector.
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Energy

• Use of Energy resources

• The major guiding policy elements
• Providing Basic Energy Needs
• Ensuring Energy Security
• Promoting Energy Efficiency and Conservation
• Promoting Indigenous Resources
• Adopting an Appropriate Pricing Policy
• Enhancing Energy Sector Management Capacity
• Consumer Protection and Ensuring a Level Playing
  Field
• Enhancing the Quality of Energy Services
• Protection from Adverse Environmental Impacts of
  Energy Facilities

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Electricity
Electricity generates using hydropower and
petroleum fuels

• Generation
• Ceylon Electricity Board (CEB)
• Hydro 1207MW (3692GWh)
• Thermal 548MW (2523GWh)
• Wind 3MW (2.5GWh)
• Eight Independent Power
• Producers (IPPs)
• Thermal 566MW (2532GWh)
• Over fifty privately-owned
• renewable energy- based Small
• Power Producers (SPPs)
• 100MW (300GWh)
• Emergency power
• 35MW (97GWh)

• Transmission and Distribution
• CEB operates HV transmission system and a major
  part of the distribution network
• 220kv- 331Km
• 132kv -1875km
• 33kv -19661km
• 11kv- 1655km)
• Grid Substations 43
• LECO distribute Electricity to about 15 of the
  consumers

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Electrification
Electricity generates using hydropower and
petroleum fuels

• National grid serves electricity to an estimated
  75 of the households,
• off-grid systems based on solar power or
  community small hydro/wind/biomass power plants
  serve 3 of the households

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Electricity
Service Delivery Issues -

• Non-availability of electricity
• Inadequacy and high cost of electricity
  generation
• Inadequacy of Transmission and Distribution
• High cost and price of electricity (cost of
  electricty12.65UScts/kWh(Rs13/kWh)/sale at
  9.5UScts/kWh(Rs9.65 kWh)
• High debt burden of the electricity sector
  (US874.3MillionRs90,000million)
• High price of petroleum products

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Electricity

• Key Issues in the Sector
• Access to electricity
• Reforms and Regulatory Developments
• Electricity tariff rationalisation, debt
  restructuring and targeted subsidies
• 50 of cost of supply of first 30kWh as subsidies
• Fuel diversity and energy security in bulk power
  generation
• Renewable energy for electricity generation
• Transmission and distribution network development
• Supply-side energy efficiency
• Demand-side energy Efficiency
• Energy sector knowledge management, planning and
  funding

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Growth in electricity generation

• In 2005, electricity generation grew by
  9.3,expected to continue to grow at rate of 10
  per year over the next 15 years
• By end 2006, there were 3,596,319 household
  electricity customers
• -Domestic 3,164,480
• -Religious 21,556
• -General 373,781
• -Industrialists 35,947
• -Hoteliers 545

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Electricity
Current Status, Baseline Indicators and Strategic
Targets for 2016
Household Electrification Achievements and
Targets
Strategy 96 of households by 2016.
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Electricity
Targeted Fuel Diversification in Electricity
Generation
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Fuel Diversity and Security Targets for 2016
Electricity
Non-Conventional Sources for Electricity
Generation
Target of 10 of grid energy to be supplied from
NCRE by 2015 (400MW)

• Strategy
• Relieve constraints on the grid,
• introduce technology-specific cost based
  tariffs,
• arrange financial resources

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Transmission and Distribution Network Development
Electricity

• Strategy
• Invest on transmission and distribution network
  expansion and improvements
• Target for 2016
• Achieve a transmission and distribution network
  meeting the stipulated reliability and quality
  criteria.
• The investment plan
• Routine LV upgrades of CEB and LECO - with
  internal cash generation.
• MV and HV network development by CEB requires
  larger investments, for which funds have to be
  secured either on concessionary or commercial
  terms.

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Energy Efficiency and Demand Management on the
Supply-side
Electricity
Network Loss Reduction Target for
2016 Reduction of total technical and commercial
losses (of the CEB network) from 16.73 to 12
of net generation. Interim target
13.5 by 2009.
Energy Efficiency Improvement on the
Demand-side All appliances which substantially
contribute towards electricity demand will be
identified and labelled based on their energy
efficiency by end 2010.
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Energy Efficiency on Supply-side and Demand
Management
Electricity

• Energy Sector Knowledge Management, Planning and
  Funding
• Make the Sri Lanka energy fund operational by
  2007
• Establish Provincial Energy Bureaus by 2007
• Establish disaggregated energy demand database by
  2008
• Establish a 20-year Integrated National Energy
  Plan by 2008

• Reforms and Regulatory Development
• Empowering PUCSL to regulate the sector
• Economic tariff setting reflecting prudent cost
  recovery
• Establish a continuous metering system for energy
  transfers
• between regions by 2008
• Upgrade the management information system
• Establish a transparent power plant dispatch
  program by 2008.

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Summery Plan of Action
Electricity
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Summery Plan Action
Electricity
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INVESTMENT OPPOTUNITIES
Electricity

• Access to electricity
• Grid and Off-grid finances for RE schemes and
• investment on off-grid energy ssystems US 220
  mn
• Tariff rationalization,Debt restructuring and
• targetted subsudies
  US1669mn
• Fuel diversity and energy security and
  reliability
• Bulk power Generation
• Trincomalee Coal-fired Power Plant US 1150mn
• Hambantota Coal-fired Power Plant
  US 1200mn
• Kerawalapitiya combined cycle plant with LNG
  facility US 650 mn
• Kerawalapitiya combined cycle HFO/LFO/LNG
  plant US 323mn
• Medium-scale Hydroelectric Projects US 550 mn
• Renewable energy for electricity generation US
  500 mn
• Transmission and distribution network development
  US 700mn
• Supply-side energy efficiency US 90 mn
• Demand-side energy Efficiency US 50 mn
• Energy sector knowledge management, planning US
  270 mn
• Reforms and Regulatory Development US 14 mn

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Method of Financing by Source
Electricity

• Grants
• Concessionary Long-term Finance (CLF)
• Private Sector Investments (PSI)
• Capital Market Finance (CMF)
• Public/private partnerships (PPP)
• Cleaner Development Mechanism (CDM)
• Internal Cash Generation (ICG)
• Government (GOSL)
• Direct Investments by Users (DIU)

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• THANK YOU