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No more tenders in renewable energy purchase, AG tells CEB
View(s):By Niranjala Ariyawansha
The Ceylon Electricity Board (CEB) can procure electricity from renewable energy producers without calling for tenders, but the unit price should be determined by a committee, the Attorney General has advised the utility, interpreting the recent amendments to the Sri Lanka Electricity Act.
In answer to a query, the AG told the CEB General Manager that resorting to a tender to buy energy from renewable energy developers was inconsistent with the new amendment.
The CEB had asked the AG whether it faced any restrictions in procuring renewable energy above 10MW under the Sri Lanka Electricity (Amendment) Act No.16 of 2022.
A senior CEB official told the Sunday Times the AG’s opinion meant the CEB would not be calling for competitive tenders when purchasing renewable energy from companies such as Adani Green Energy of India, which has obtained approval to set up a 500MW wind power project in Sri Lanka.
The official noted the competitive tender process would enable the CEB to buy electricity from the lowest bidder and even reduce the tariff.
However, letting the unit price be decided by a committee would deny the CEB this advantage and force it to buy electricity at a higher price.
This will leave the CEB with only two options — either increase electricity tariffs and put the burden on the consumer or sell it to the consumer at a reduced rate and absorb the loss.
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