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CEB says approval for Adani project illegal
View(s):- Controversy rages over SEA’s ‘provisional’ nod for the wind-power deal
By Niranjala Ariyawansha
‘Provisional approval’ given by the Sustainable Energy Authority (SEA) to the Adani Free Energy Group of India to construct a wind power project in Pooneryn in the north is “illegal”, says the Ceylon Electricity Board (CEB).
In a written statement, CEB General Manager Rohantha Abeysekera states the provisional approval granted for the construction of the 234MW wind-power project violates the SEA Act No. 35 of 2007. The project came up for serious discussion when the then Finance Minister Basil Rajapaksa looked to India to obtain financial assistance in December last year when the economic crisis in Sri Lanka began to bite.
On July 7, SEA Chairman Ranjith Sepala issued preliminary approval to Adani Green Energy. It had been stated by the chairman that stakeholders had been informed to take necessary steps to facilitate the project. Subsequently, provisional approval was issued, but that too was held illegal by the CEB.
Previously, SEA Director General Sulakshana Jayawardena had rejected granting such an illegal ‘preliminary approval’ due to influence from political authorities and had resigned from his post, the Sunday Times learns.
The provisional approval is the most important condition to be fulfilled to launch such a project. However, it needs approval at the Project Approving Committee (PAC).
According to Sri Lanka Sustainable Energy Authority Act No. 35 of 2007, it is only ‘provisional approval’ that has to be granted to such Non-Conventional Renewable Energy (NCRE) projects and it has to be approved by the PAC.
Consistent with the SEA Act, “there shall be appointed a Project Approving Committee which shall consist of the following members under section (10) 1:
Accordingly, a senior officer each from the Ministry of Finance, CEB, SEA, the Central Environmental Authority, Irrigation Department, Water Supply Board, Forest Conservation Department, Sri Lanka Mahaweli Authority, Board of Investment of Sri Lanka, Land Commissioner General, Wild life Department and the Coast Conservation Department should be a member of the PAC.
A top SEA official said ‘provisional approval’ had not been granted for this project by the PAC.
Prior to the PAC granting provisional approval, the SEA has to fulfill a number of conditions. He said that, initially a proper feasibility study regarding the project should be completed but the SEA had not done that.
At the same time, prior to referring it to the PAC for approval, a report has to be obtained from the CEB regarding the electricity generated from such a massive power project, the technical possibility for absorbing that power into the national grid, that is, grid connectivity and transmission line capacity.
The official said, “It is a report that has to be issued subsequent to a complicated engineering study. However, the SEA has not made a request for such a report from the CEB. That is why the CEB GM has sent a letter rejecting the ‘preliminary approval.’
“The CEB GM is a member of the PAC. He is aware that SEA did not request that report,” he said.
A senior CEB official said that, if transmission developments were not ready to absorb 500MW of solar and wind power, the CEB would have to pay compensation to the developer at a later stage. Therefore, concurrence of the CEB was a must for this project.
The Sri Lankan government signed a memorandum of understanding with Adani Green Energy on March 11 this year for a USD 442 million solar and wind power project.
According to the parliamentary Committee on Public Enterprises (COPE) minutes, Adani has requested 6000MW of wind and solar projects during the initial stage.
The Sunday Times’ attempt to contact the SEA chairman proved futile.
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