Sri Lanka goes for green energy amidst increase in power demand
Sri Lanka’s electricity demand has increased by 23 percent in the first four months of this year during the relaxations of lockdowns and mobility restrictions by the government aimed at continuing economic activities during the COVID -19 pandemic, a Finance Ministry report highlighted.
The countrywide electricity demand has gained momentum due to more power usage by industry, general purpose by the people and the hotel sector, the report revealed.
Electricity is forecast to grow at around 8 percent annually and the energy consumption has increased to 4,949 Gwh in the first four months of 2021, compared to 4,026 Gwh in the same period of 2020.
As a result, revenue from the sale of electricity has also increased by 20 percent to Rs. 80,529 million in the first four months of 2021, compared
to Rs. 67,213 million in the same period last year, the report said.
This has enabled the Ceylon Electricity Board (CEB) to reduce its total loss to Rs. 7.51 billion, compared to Rs. 25.99 billion recorded in the same period of 2020.
The CEB has also brought down the cost per unit at the selling point to Rs.18.29 per Kwh compared to Rs. 23.74 per Kwh recorded in the same period last year, the report said.
This achievement was possible due to the favourable changes made in the generation mix as Hydro, Thermal (fuel), Thermal (coal), and Non – Conventional Renewable Energy (NCRE).
Taking a cue from this system adopted by the CEB, the government has set a target to generate 70 percent of the electricity demand through renewable energy even at a high investment of US$3-4 million by 2030, the report added.
This was in accordance with the green economic policy of the president to increase the power generation capacity of the country from the existing 4,043 MW to 6,900 MW by 2025 with a significant increase in renewable energy.
Opportunities in the power sector include wind and solar plants, LNG power plants, converting auto diesel-fired plants to dual fuel (liquid natural gas) plants, mini hydroelectricity plants, home solar systems, wind energy, electrical meters and switches, power transmission and control systems, and power cables.
Sri Lanka plans to add 1000MW of solar power and 780MW of wind power from 2020-2025.
However the total outstanding obligations of the CEB including project loans stood at Rs. 371,299 million as at end April 2021, whereas outstanding to the state banks due to working capital requirements stood at Rs. 107,219 million, the report said.
The total payables of CEB to the Ceylon Petroleum Corporation and to Independent Power Producers declined to Rs. 126,869 million by the end April 2021 from Rs. 133,365 million as at end 2020.