No coal power plants: PUCSL approves CEB's alternate generation plan

The Public Utilities Commission of Sri Lanka (PUCSL), the country's electricity sector regulator, has approved an alternate Ceylon Electricity Board (CEB) Long Term Generation Plan sans any coal power plants. 

At a media briefing held today, PUCSL officials said the Commission had approved an optional plan submitted by the CEB on its Least Cost Long Term Generation Expansion Plan (LCLTGEP) 2018-2037. 

The LCLTGEP had been compiled based on the results of the latest electricity expansion planning studies conducted by the CEB for the planning period of 2018-2037which includes several optional plans. The CEB had recommended its "base case plan" under least cost principals to be implemented for the next 20 years.

PUCSL held a public consultation on the LCLTGEP 2018-37 where stakeholders were given an opportunity to raise concerns over the plan.

PUCSL also undertook lengthly studies on all the optional and recommended plans that CEB submitted.

In these studies, PUCSL accommodated the adjustments of updated fuel prices, the cost of externalities (social and environmental costs) to identify the least cost plant addition sequence based on the most sustainable technology to avoid electricity shortfalls in the country. 

PUCSL approved 242MW of Major Hydro, 215MW of Mini Hydro, 1389MW of Solar, 1205MW of Wind,85MW of Biomass, 4800MW of Natural Gas, 330 MW of furnace oil based power and 105MW of Gas Turbine power to be added to the electricity generation system in 20 year period.

The same plan was studied and proposed as an alternate plan in the LCLTGEP 2018-37 by CEB. However, it was not proposed as the base case plan by CEB under least cost principals, considering the cost of investment which was USD 15,607.70 million (LKR 2,323.67 billion without updated fuel prices and externalities costs). 

But, after adjusting the updated fuel costs and externalities PUCSL derived at the same alternate plan under least cost principals with the investment cost of USD 13,336 million even lower than the proposed base case plan of CEB.

The investment cost of the proposed base case plan of CEB stood at USD 14,894.64 million (without updated fuel prices and externalities costs).

All the renewable addition that CEB suggested in the proposed plan remained same, but with updated fuel prices and cost of externalities under least cost principals coal power plants were not qualified for the 20-year plan.

In total, Sri Lanka plans on 8371MW of new additions (including the committed power plants) to the national grid in the period of 20 years from 2018.

Sri Lanka expects a 5.0% energy demand growth and a 4.5% peak demand growth rate for the period 2018-2037.

PUCSL stressed on fast implementation of the approved plan to avoid an electricity shortfall or procuring emergency power in the future.

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