The recent “Corporate Strategy and Plan 2014-2016″, issued by the Public Utilities Commission of Sri Lanka (PUCSL), has signalled that this public sector body intends to issue generation licences for renewable energy sources, namely bio mass, wind and mii hydro. This is in line with the government’s policy to make renewable energy 10 per cent of total energy by 2015. 

The PUCSL, which has called for public comments to the strategy which is available on its website, also noted that the next step in terms of greater adoption of Non-Conventional Renewable Energy (NCRE) was a study to determine its current local efficacy, with a view to expanding its domestic reach and adoption. The report states: “The peak time and day time dispatch of each NCRE technology (mini-hydro and wind) over the year 2013 would be analysed to estimate the effective capacity contribution from each technology as a factor of installed capacity. A cost benefit analysis of this capacity / energy contribution would also be carried out. This study is expected to aid the justification of promotion [Feed In Tariffs] being proposed to procure NCRE energy”.

Additionally, the PUCSL also indicates that it will “regulate all energy purchase prices of the transmission licensee including [NCRE] feed in tariffs”. Further, it states that it will “direct the generation licensee of CEB and independent power producers to conduct the heat rate test of their thermal generation units. The results will be used in the tariff determination process to verify the fuel consumption levels of the generating units”.

In keeping with one of its key goals, energy conservation, the commission will also “monitor the energy loss levels of licensees against the approved loss targets in the tariff setting process in 2011. The commission will have continuous dialogue with licensees and facilitate their efforts in whatever possible way to meet targets. Further, the commission will constantly deal with licensees to establish the system loss levels on an analytical basis”.

Elaborating further, the report states: “The loss targets established for the transmission licensee and the distribution licensees at 2011 tariff setting is not based on sound technical study. Also it has been observed that the actual loss levels of some licensees over the past two years are very different from the set targets. To solve these differences the commission decided to carry out a study with external consultants”.

Meanwhile, the PUCSL report also calls for setting up “computer based analytical tools such as the load flow, fault, stability, etc. to facilitate the approval of licensee’s generation and transmission plans”. And, analysis to reduce “peak demand through the peak shifting, demand side management and dynamic pricing”. This would be helped along by; “Adaptation of SMART metering and AMI at least in Grid substation level for automated measurements recording and reporting system, to address the issue of lack of data and inconsistency”.

One area in which significant energy savings could be felt was identified as street lamps. States the report; “The commission considers the street lamp is an area where room for conservation and efficient use of energy is significantly available. The commission will advise the government on policy matters related to operation and maintenance of street lamps”.

At the same time, the commission also recommended a new set of regulations on electricity meters to the Minister of Power and Energy, to ensure the accurate measurement of energy supplied to consumers.

Other highlighted plans include: “The commission initiated the process to create a Consumer Consultative Committee (CCC) under Section 29 of the PUCSL Act. The CCC represents interests of smaller consumers (both existing and potential) of regulated industries, and acts as a counterweight to the government, service providers, and larger consumers in advocating views presented before it. The CCC consists of 15 committee members who represent a range of consumer interests… The commission will facilitate the establishment of Regional Consumer Societies (RCS) under the CCC to further expand and strengthen the consumer consultation process. Also, the Commission will make use of the RCS network to reach consumers for awareness programmes conducted by the commission. Thirty five Regional Consumer societies in seven provinces have been established by now”.

The report also signals that the body will “formulate policy recommendations to the government on off grid connected electricity consumers. About 130 off grid electricity distribution schemes have been identified in a recent survey. It has been identified that the quality, reliability, safety and revenue aspects of these schemes have to be enhanced for the benefit of consumers and viability of these schemes”.

Another revelation in the report was; “National night peak causes [transmission licensee] to use the service of expensive peaking generators. The lighting load is the main cause of night peak. By using energy storage methods, this peak can be shaved while valleys are filled. Hence, cost of generation during peak time can be reduced”. The report further proposes that, between 2015 and 2016, the PUCSL should pursue transmission licensees and distribution licensees in preparing “feasibility on use of utility scale energy storage to national peak shaving”.
(JH)