4Important Data (2011) Population - 20.6 million Area - 65610 sq km Elec. Cons kWh/personEne. Cons TOE /personAnnual Rain Fall – 6000 mmHumidity - 70% (Day), 90% (Night)Avg. Temp - 30 oC
5IntroductionCeylon Electricity Board IS THE Single Buyer of ElectricityPOWER SECTOR REGULATOR introduced in year 2009SINCE EARLY 1990s PRIVATE SECTOR HAS BEEN ALLOWED to Built, Own and Operate Small Hydro Power GENERATION.ALL PRIVATE POWER MUST BE SOLD TO THE CEB GRID.POWER PLANTS OVER 10 MW SIGN INDIVIDUAL PPAs.Renewable Energy BASED POWER PLANTS UP TO 10 MW SIGN A STANDARD PPA VALID FOR YEARS.
6Electric Power Generation Capacity - 2011 Installed Capacity:Hydro Power - CEB MW- Private MWThermal CEB MW- Private MWWind - CEB MW- Private MWMaximum Demand – Day MW on- Night MWNational Electrification Level – 91 %Share of Electricity to Total Energy – 9.4%
7Installed Capacity in MW Energy Generation in GWh Power & Energy - DemandInstalled Capacity in MWEnergy Generation in GWh2004200620082010Hydro PowerCEB12072755429037004988Private74109150175206346435646Thermal61854825071669208313844555677378422064308236803600Wind3122.72o83Gross Generation9389990110714Maximum DemandDay1104.61312.41402.7Night1563.41892.51922.2National Electrification Level73.40%78.10%83%Source - CEB Statistical Digest
8Whether Pattern & Geography Monsoons in Sri Lanka- North East (NE) Monsoon - December – February- 1st Inter Monsoon - March – April- South West (SW) Monsoon - May – September- 2nd Inter Monsoon - October - November
9History of MHPUtilization of micro hydro energy in the plantation industry at the beginning of 20th centuryMostly provided mechanical shaft power for the industrial process machinery.Around 500 such plants in early 20th CenturyAround 50 such plants are in operation in 1990’s.
10Background to Grid Interconnection of Small Hydro Power Official Committee was appointed in 1992 to study Sri Lanka's power needs for the periodRecommended private sector participation in MHP-developmentAppointment of Consultants to study Technical and legal requirementsPower purchase policyEconomic and financial analysis.Rehabilitation and modernization strategy.
11Background to Grid Interconnection… The final study report of the consultants was presented in November The Consultants main recommendations were,Establishment of technical standards for grid connection of MHP plants, andFormulation of a contract document containing all commercial and legal aspects concerning the relationship between CEB and the MHP plant owners
12Background to Grid Interconnection…. First Estate MHP Plant (60 kW) was connected to the GRID in 1994The first new Grid Connected BOO SHP was commissioned in 1995.
13Initial Small Power Purchase Agreement Developed with assistance of the World BankStandardized TermsPublished Tariff based on CEB’s Avoided CostsApplicable for;Capacity : Less than 10 MWEnergy produced from :Renewable energy sourcesWasteCo-generation
14Features of Initial Small Power Procurement Program of Ceylon Electricity Board Term of the Contract : NegotiableTransmission Interconnection : paid for by the developerInterconnection Standard : BEA Engineering Recommendation G 59.1 and CEB GuidelinesMetering equipment : provided by CEBCredit for energy delivery during the Dry SeasonPower Purchase Guarantee by CEB: 100 %Tariff : based on CEB’s Avoided Costs each yearTariff : Payable in Sri Lanka Rupees, but calculated in US Dollars, using the prevailing exchange ratesTariff stability : Assured by a 90% Floor price
15Power Sector Policy Power Sector Policy Directions 1997 Hydro power generation potential of the country will be developed to its full potentialPrivate sector financing will be utilized for power generation from small hydro power plantsPrivate Sector will be encouraged to develop non-traditional energy including Mini and Micro Hydro, Wind, and Solar Power up to a ceiling of 10% of the island wide demand for electricity. Dendro-Power development will also encouraged.( (Page 10 of Proposed Power Sector Policy Guidelines November 2002)
16Government Energy Policy Guidelines - Published in May 2008 High priority to energy sectorThree important sectionsEnergy policy ElementsImplementing StrategiesSpecific Targets and Milestones and Institution Responsibilities
17Government Energy Policy Guidelines Developers will be encouraged to develop non-traditional energy including Mini and Micro Hydro, Wind, and Solar Power up to a ceiling of 10% of the island wide demand for electricity. Dendro-Power development will also encouraged. – Target 2015(Clause 4.4 of National Energy Policy May 2008)
18Technical Consideration – CEB Guide for Grid Interconnection of Embedded Generation – Dec. 2000 This Guide is based on the requirements of Ceylon Electricity Board (CEB), Sri Lanka, and the conditions and constraints under which the CEB system operates. The primary intention of this Guide is to establish procedures and equipment to protect CEB personnel, equipment and the system from any harmful effects arising out of the interconnection and operation of Embedded Generators.The total capacity of embedded generation is expected to be less than 6% of the peak load, and about 15% of the minimum load. Otherwise, review the guide accordingly.
19Guide for Practical Implementation of Grid-Interconnection Specification Prepared a detailed design guidelines to assist project developers (mini hydro and other renewable power facilities upto 10 MW) in selecting and designing interconnections and electrical and Electro-mechanical equipment/systems to ensure that the the project meets the technical integration with CEB grid system
20Key Factors for the SHP Development Availability of profitable sites.Availability of loan funding.Availability of Technical ExpertiseReliable data to carry out feasibility studies available.Prior history of SHP development in Sri Lanka.The standard PPA and Technical guidelines.BOI concessions
22Village Hydro Power Plants More than 150 plants are in operationCapacity 500 W – 50 kWTotal capacity 1652 kWServing more than 6000 households
23Off-Grid Renewable Energy Project Development Training Training in all aspects (financing of renewable energy projects, including off-grid systems, analyses of technical, financial and institutional capabilities for preparation of project proposals) of off-grid subproject preparation to relevant CEB staff, the private sector and village co-operatives.
26KEY FACTORS HELPING THE DEVELOPMENT OF THE SHP SECTOR THE STANDARD PPA.AVAILABILITY OF LOAN FUNDING.AVAILABILITY OF PROFITABLE SITES.RELIABLE DATA TO CARRY OUT FEASIBILITY STUDIES AVAILABLE.PRIOR HISTORY OF SHP DEVELOPMENT IN SRI LANKA.PLANT AND MACHINERY FREE OF DUTY.INCOME TAX CONCESSIONS.DEMONSTRATION PROJECT SUBSIDISED BY NGO.MANY OF THESE FACTORS APPLICABLE TO OTHER FORMS OF RET BASED POWER.(Dr Romesh Bandaranayake, CEO, ECO Power (Pvt.) Ltd.), 2000