Manufacturing and services moving into RE sector to cut costs
Increasingly, manufacturing and service industries are deploying solar and other renewable energy sources for their energy requirements amidst the high power costs, officials said.
The Power Ministry’s decision to change solar energy tariffs depending on the market variations has given these industries renewed hope of saving on energy bills, officials said.
The country spent Rs. 225 billion on coal last year and Rs. 155 billion on Ceylon Electricity Board (CEB) oil plants. Last year, the private oil plant bill was Rs. 170 billion and only Rs. 58 billion was spent on renewable energy. The lack of importance given to this industry has not worked well for the entire energy sector, industry officials said. They said that with a cost-reflective tariff for solar as well as the CEB committing to its obligations, renewable energy can revive its industry.
For nearly a year now, the industry has been calling for timely payments by the electricity supplier. Industry officials also said that till the proper tariff is released, the industry will not go forward.
The energy crisis seen over the past few months has given a new direction to the manufacturing and service industries with renewable industry officials saying that many have come to them with proposals to implement solar or other renewable solutions to decrease their energy costs.
Some bankers also said that renewable energy is becoming popular with most manufacturing industries. “We are getting a lot of proposals in this front requesting for credit to implement such projects,” one banker said.
The unviable new tariff is crushing the solar industry by stopping new entrants while 50 megawatts of solar projects are still to be connected to the national grid.
Commercial Bank Managing Director, CEO Sanath Manathunge told the Business Times recently that it is important to assist this sector to come out of the current crisis as it employs many sectors and spills into other businesses as well. “Certain industries like the renewable energy and construction sector should be encouraged. These are feeding into other smaller industries. Renewable energy is the future.”
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