Selume proferre..! Investment Opportunities in Resource Management and Renewable Energy Projects in Sri Lanka

Transcription

1 Selume proferre..! Investment Opportunities in Resource Management and Renewable Energy Projects in Sri Lanka Mr. Pradip Jayewardene, Consul General Consulate General of Sri Lanka, Frankfurt am Main

2 The Outline Introduction to Sri Lanka General and touristic Information Current status of the energy market of Sri Lanka Renewable energy potentials Current barriers on renewable energies Energy efficiency potentials Outlook

3 Sri Lanka

4 Sri Lanka Small Miracle...

5 Pristine

6 ild

7 hrills

8 egendary

9 ssence

10 Energy Mix Installed Capacities of Existing Power Plants MW in 2010 CEB Hydro 1,207 + UKHP 150 = 1,357 MW CEB Thermal 548 (HFO+Diesel) + Coal 300 = 848 MW IPP Thermal = 1,112 MW SPP (Renewables) = 217 MW Total 3, = 3,537.6 MW Source: SLSEA, 2012

11 Energy Policy 1. Providing basic energy needs 2. Ensuring energy security 3. Promoting energy efficiency and conservation 4. Promoting indigenous resources 5. Adopting an appropriate pricing policy 6. Enhancing energy sector management capacity 7. Consumer protection and ensuring a level playing field 8. Enhancing the quality of supply 9. Protection from adverse environmental impacts of energy facilities National Energy Policy Declaration

12 Energy Sector Ensuring energy security Fuel diversity in electricity generation (diversifying into non-oil resources) Sri Lanka already had nearly 100% Renewable Energy Supply! The Government will endeavour to reach a level of 10% of grid electricity using NRE by Change The from Government Oil to coal recognizes is not changing that certain the NRE dependency technologies would on fossil require incentives to ensure their capacity build-up to reach the fuel imports and the loss of purchase power Year national NRE target. Creation of an Energy Fund. Conventional Hydroelectric Maximum from Oil Coal Minimum from NRE Comments % 6% 0% Actual % 54% 0% 1% Actual % 61% 0% 3% Moratorium on power plants burning oil or similarly priced oil/gas products % 31% 20% 7% Progressive diversification into coal and NRE Moratorium on power plants burning oil or similarly priced oil/gas products may be % 8% 54% 10% lifted

13 Energy Production CEB and private oil power producers get oil at a subsidized price - Market price for heavy fuel oil is Rs. 60 per liter - Supplied for power generation at Rs Hidden subsidy of about Rs per kwh by power plants fired by heavy fuel oil - Petroleum imports increased from $2.9 Billion to $4.8 Billion in Fuel subsidies removed Impact of Petroleum Product Imports on Trade Balance (in million US$) % Total Exports Country Total Exports as an Index 18,74 20,32 22,56 23,95 20,92 24,53 Total Imports ,00% Crude oil Imports Price C&F US$/bbl 51,87 65,11 71,96 97,65 62,53 79,24 Petroleum Imports ,06% Petroleum Re-Exports Net Oil Imports ,16%

14 Energy Production Turning point from Hydro to Thermal Power Generation in 1996/1997 (as a result of 1996 power shortage) Power Purchase Price increase of 60% in the last 5 years Hydro Non-Conventional Thermal

15 NRE At a glance Projects Type Project in Operation Projects with EP No. MW No. MW Mini Hydro Biomass Dendro Biomass-Agricultural & Industrial Waste Waste Heat Recovery Solar Wind Total Data

16 Gross Electricity Generation (GWh) Installed Capacity (MW) NRE Contribution Wind (GWh) Biomass (GWh) Hydro (GWh) Hydro (MW) Biomass (MW) Wind (MW)

17 CEB Load profile CEB accepts max 6% RE of Load Peak Option A: Develop new (dispatchable) Consumer Option B: Investments in Efficiency to flatten the peak

18 Wind Potentials Wind studies were initially carried out (2000/2002) at several locations (NREL) Tremendous wind power potential of up to 20,740 MW s LCOE Wind is estimated to be around 20Rs/kWh, and thus competitive! Transmission System and (Thermal) Grid Capacity are blocking new RE investments

19 PV Potentials Off-Grid, mainly by SHS, had proven to be successful and cost-effective Not transferred to on-grid PV on large-scale Currently two projects (500KWp and 737 KWp) are on-grid installed In the south (dry zone) favourable conditions (up to kwh/kwp) Several MW-tenders are expected in future Solar Potential in Sector Overview Off-Grid Energy Production National Policy on Renewables Renewable Resources Development Plan Off grid

20 Technical Constraints Reaching the full capacity of most grid substations Exceeding transmission capacities Reaching the permissible levels of non- dispatchable generation in the system Good hydro sites already developed Current Conclusions: Increasing Thermal Power Production leads to increasing dependency on fossil fuel imports and capital spending Urgent need to accelerate use of renewables

21 Waste to Energy Currently approx tons of Municipal Solid Waste (MSW) are collected in Sri Lanka with 60% organic origin Non-separated landfilling is the predominant treatment Minor composting composting plants and anaerobe digestions producing kitchen gas are tested No European-style waste to energy plant in operation Example of AD-Plant nearby Colombo: Treatment Capacity: 350tons/a Quantity of Biogas: Unknown Land Demand: 1 Hectare!

22 Biomass Potential Tremendous Biomass potentials are available in Sri Lanka for energetic or material use Coconut shells are already used to produce activated carbon (low quality and high environmental impacts) Rice husks are used in low-efficient boilers Gliricidia sepium could be used to produce wood chips with high NCV Conclusion: traditional biomass usage is inefficient. New technologies for higher added value are needed. Source: Bioenergy LK

23 Energy Efficiency Potential Energy Efficiency Potentials in indoor and street lighting (cheap Chinese products with low lifetime are swamping the local market) High energy consumption in water sector (need for energy efficient pumping) Huge potentials in HVAC (solar heating and cooling as well as cooling efficiency) Energy efficiency strategies and consultancy services for industry necessary (IfaS-GIZ project) Future aim: Installation of special energy efficiency (revolving fund)

24 Challenging Conclusions Sri Lanka provide plentiful investment options and offer favorable FDI conditions RE and energy efficiency potentials in Sri Lanka are vast! Feed-in-tariff system in place Energy Efficiency in high value hospitality sector as a starting point 100% RE requires Foreign Direct Investment in production as well as grid transmission and storage infrastructure German companies are highly welcomed as (technology and know-how) partners for the energy transition!

25 Thank You!