MINI HYDRO POWER DEVLOPMENT IN SRI LANKA - INITIATIVES

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MINI HYDRO POWER DEVLOPMENT IN SRI LANKA -
INITIATIVES

• Eng. P.L.G. KARIYAWASAM
• Deputy General Manager (Energy Marketing)
• CEYLON ELECTRICITY BOARD

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Content

• Introduction
• Whether Pattern Geography
• Background to Grid Interconnection
• Grid Interconnection
• Small Power Purchase Agreement
• Features of SPPA
• Technical Consideration

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Important Data (2011)

• Population - 20.6 million
• Area - 65610 sq km
• Elec. Cons. - 480 kWh/person
• Ene. Cons. - 0.43 TOE /person
• Annual Rain Fall - 1500 6000 mm
• Humidity - 70 (Day), 90 (Night)
• Avg. Temp - 30 oC

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Introduction

• Ceylon Electricity Board IS THE Single Buyer of
  Electricity
• POWER SECTOR REGULATOR introduced in year 2009
• SINCE EARLY 1990s PRIVATE SECTOR HAS BEEN ALLOWED
  to Built, Own and Operate Small Hydro Power
  GENERATION.
• ALL PRIVATE POWER MUST BE SOLD TO THE CEB GRID.
• POWER PLANTS OVER 10 MW SIGN INDIVIDUAL PPAs.
• Renewable Energy BASED POWER PLANTS UP TO 10 MW
  SIGN A STANDARD PPA VALID FOR 15-20 YEARS.

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Electric Power Generation Capacity - 2011

• Installed Capacity
• Hydro Power - CEB 1207 MW
• - Private 548 MW
• Thermal - CEB 848 MW
• - Private 842 MW
• Wind - CEB 3 MW
• - Private 47 MW
• Maximum Demand Day 1626.6 MW on 20.05.2011
• - Night 2163.1
  MW
• National Electrification Level 91
• Share of Electricity to Total Energy 9.4

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Power Energy - Demand
      Installed Capacity in MW Installed Capacity in MW Installed Capacity in MW Installed Capacity in MW Energy Generation in GWh Energy Generation in GWh Energy Generation in GWh Energy Generation in GWh
      2004 2006 2008 2010 2004 2006 2008 2010
                   
  Hydro Power CEB 1207 1207 1207 1207 2755 4290 3700 4988
  Private 74 109 150 175 206 346 435 646
  Thermal CEB 618 548 548 548 2507 1669 2083 1384
  Private 455 567 737 842 2064 3082 3680 3600
  Wind CEB Private 3 0 3 0 3 0 3 12 2.7 0 2 o 3 0 3 83
Gross Generation Gross Generation           9389 9901 10714
Maximum Demand Maximum Demand Day 1104.6 1312.4 1402.7          
  Night 1563.4 1892.5 1922.2          
National Electrification Level National Electrification Level National Electrification Level 73.40 78.10 83 83        
Source - CEB Statistical Digest Source - CEB Statistical Digest Source - CEB Statistical Digest Source - CEB Statistical Digest
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Whether Pattern Geography

• Monsoons in Sri Lanka
• - North East (NE) Monsoon - December February
• -  1st Inter Monsoon - March April
• - South West (SW) Monsoon - May September
• -  2nd Inter Monsoon - October - November

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History of MHP

• Utilization of micro hydro energy in the
  plantation industry at the beginning of 20th
  century
• Mostly provided mechanical shaft power for the
  industrial process machinery.
• Around 500 such plants in early 20th Century
• Around 50 such plants are in operation in 1990s.

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Background to Grid Interconnection of Small Hydro
Power

• Official Committee was appointed in 1992 to study
  Sri Lanka's power needs for the period 1991-2005.
  
• Recommended private sector participation in
  MHP-development
• Appointment of Consultants to study  
• Technical and legal requirements
• Power purchase policy
• Economic and financial analysis.
• Rehabilitation and modernization strategy.

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Background to Grid Interconnection

• The final study report of the consultants was
  presented in November 1993. The Consultants main
  recommendations were,
• Establishment of technical standards for grid
  connection of MHP plants, and
• Formulation of a contract document containing all
  commercial and legal aspects concerning the
  relationship between CEB and the MHP plant owners

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Background to Grid Interconnection.

• First Estate MHP Plant (60 kW) was connected to
  the GRID in 1994
• The first new Grid Connected BOO SHP was
  commissioned in 1995.

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Initial Small Power Purchase Agreement

• Developed with assistance of the World Bank
• Standardized Terms
• Published Tariff based on CEBs Avoided Costs
• Applicable for
• Capacity Less than 10 MW
• Energy produced from
• Renewable energy sources
• Waste
• Co-generation

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Features of Initial Small Power Procurement
Program of Ceylon Electricity Board

• Term of the Contract Negotiable
• Transmission Interconnection paid for by the
  developer
• Interconnection Standard BEA Engineering
  Recommendation G 59.1 and CEB Guidelines
• Metering equipment provided by CEB
• Credit for energy delivery during the Dry Season
• Power Purchase Guarantee by CEB 100
• Tariff based on CEBs Avoided Costs each year
• Tariff Payable in Sri Lanka Rupees, but
  calculated in US Dollars, using the prevailing
  exchange rates
• Tariff stability Assured by a 90 Floor price

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Power Sector Policy

• Power Sector Policy Directions 1997
• Hydro power generation potential of the country
  will be developed to its full potential
• Private sector financing will be utilized for
  power generation from small hydro power plants
• Private Sector will be encouraged to develop
  non-traditional energy including Mini and Micro
  Hydro, Wind, and Solar Power up to a ceiling of
  10 of the island wide demand for electricity.
  Dendro-Power development will also encouraged.
• ( (Page 10 of Proposed Power Sector Policy
  Guidelines November 2002)

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Government Energy Policy Guidelines - Published
in May 2008

• High priority to energy sector
• Three important sections
• Energy policy Elements
• Implementing Strategies
• Specific Targets and Milestones and Institution
  Responsibilities

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Government Energy Policy Guidelines

• Developers will be encouraged to develop
  non-traditional energy including Mini and Micro
  Hydro, Wind, and Solar Power up to a ceiling of
  10 of the island wide demand for electricity.
  Dendro-Power development will also encouraged.
  Target 2015
• (Clause 4.4 of National Energy Policy May 2008)

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Technical Consideration CEB Guide for Grid
Interconnection of Embedded Generation Dec. 2000

• This Guide is based on the requirements of Ceylon
  Electricity Board (CEB), Sri Lanka, and the
  conditions and constraints under which the CEB
  system operates. The primary intention of this
  Guide is to establish procedures and equipment to
  protect CEB personnel, equipment and the system
  from any harmful effects arising out of the
  interconnection and operation of Embedded
  Generators.
• The total capacity of embedded generation is
  expected to be less than 6 of the peak load, and
  about 15 of the minimum load. Otherwise, review
  the guide accordingly.

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Guide for Practical Implementation of
Grid-Interconnection Specification

• Prepared a detailed design guidelines to assist
  project developers (mini hydro and other
  renewable power facilities upto 10 MW) in
  selecting and designing interconnections and
  electrical and Electro-mechanical
  equipment/systems to ensure that the the project
  meets the technical integration with CEB grid
  system

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Key Factors for the SHP Development

• Availability of profitable sites.
• Availability of loan funding.
• Availability of Technical Expertise
• Reliable data to carry out feasibility studies
  available.
• Prior history of SHP development in Sri Lanka.
• The standard PPA and Technical guidelines.
• BOI concessions

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Data - Statistical Digest - CEB
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Village Hydro Power Plants

• More than 150 plants are in operation
• Capacity 500 W 50 kW
• Total capacity 1652 kW
• Serving more than 6000 households

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Off-Grid Renewable Energy Project Development
Training

• Training in all aspects (financing of renewable
  energy projects, including off-grid systems,
  analyses of technical, financial and
  institutional capabilities for preparation of
  project proposals) of off-grid subproject
  preparation to relevant CEB staff, the private
  sector and village co-operatives.

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Low head hydropower projects- Turbine
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Low head hydropower projects- Turbine
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• KEY FACTORS HELPING THE DEVELOPMENT OF THE SHP
  SECTOR
• THE STANDARD PPA.
• AVAILABILITY OF LOAN FUNDING.
• AVAILABILITY OF PROFITABLE SITES.
• RELIABLE DATA TO CARRY OUT FEASIBILITY STUDIES
  AVAILABLE.
• PRIOR HISTORY OF SHP DEVELOPMENT IN SRI LANKA.
• PLANT AND MACHINERY FREE OF DUTY.
• INCOME TAX CONCESSIONS.
• DEMONSTRATION PROJECT SUBSIDISED BY NGO.
• MANY OF THESE FACTORS APPLICABLE TO OTHER FORMS
  OF RET BASED POWER.
• (Dr Romesh Bandaranayake, CEO, ECO Power (Pvt.)
  Ltd.), 2000

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Thank you