An alternative to the 500 MW Sampur Coal Power Plant
View(s):Sri Lanka should focus on the commercial development of the liquefied natural gas (LNG) fields discovered already. A 500 MW LNG power plant is the first step, initially based on imported LNG, until the Sri Lanka owned gas field is tapped. International tenders should be called for this project with the power plant and at least one LNG field being awarded to the winner of the tender. A coal power plant is not the cheapest or the best investment. The Environmental Impact Assessment’s findings suggest that natural gas–fired power plants are cheaper to build with overnight capital costs ranging from US$676 to $2,095 per kilowatt (or kW), depending on the technology.
Capital costs for coal-fired power plants range from $2,934 to $6,599 per kW, depending on the technology. However, at present, the unit cost of power produced by a coal power plant is lower, but the gap is closing because of the rapidly increasing cost of producing coal in the face of environmental lobbies. For further information, please refer the link: http://marketrealist.com/2015/01/natural-gas-fired-power-plants-cheaper-build/ In the case of Sri Lanka, there is no question that a LNG power plant integrated with the tapping of our gas field is the correct option.
Lal de Mel
Patron & Past Chairman of the
Chamber of Industries of Sri Lanka