Democratic Socialist Republic of Sri Lanka Commercial Capital: Colombo Administrative Capital: Sri Jayawardenapura Kotte

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1 SRI LANKA

2 Country Profile Democratic Socialist Republic of Sri Lanka Commercial Capital: Colombo Administrative Capital: Sri Jayawardenapura Kotte Sri Lanka is an island in the Indian Ocean, South Asia Lies just above the equator between 5 55'N and 9 55' N and between the eastern longitudes 79 42' and 81 52'. Land Area km km Long, 240 km Wide Population Million Ethnic Group Ethnic Group % Religion % Sinhalese 74 Buddhism 76.7 Tamil 18 Hindu 7.9 Muslim 7 Muslim 8.5 Other 1 Christian 6.9

3 POWER SECTOR - SRI LANKA Ministry of Power and Renewable Energy Sri Lanka 24/06/2016 3

4 National Energy Policy & Strategies Energy Policy Elements Creating the necessary framework to provide the basic energy needs of the populationis recognized as a primary social responsibility ofthe State Ensuring Energy Security of Sri Lanka Energy resources used to be diversified and the future energy mix to be rationalized Promoting Energy Efficiency & Conservation Promoting Indigenous Resources Indigenous energy resources to be developed to the optimal levels to minimize dependency subject to resolving economic, environment & Social Constrains 24/06/2016 4

5 Adoptingappropriate Pricing Policy Considering factors as cost reflectivity, need for targeted subsidies and competitiveness of locally produced goods & services in regional and international market EnhancingEnergy Sector Management Capacity Consumerprotection and ensuringa Level Playing Field Enhancing quality of Energy Service Protection from adverse environmental impacts of Energy Facilities 24/06/2016 5

6 Specific Targets, Milestones & Institutional Responsibilities 1) Electrification of Households 2) Non-Conventional Renewable Energy based electricity in the Grid Ø NCRE Resources include small-scale hydro power, biomass including dendro power, biogas and waste, solar power and wind power Ø A minimum level of 10% of energy supplied the grid to be from NCRE by 2015 Ø NCRE strategy should not cause any additional burden on the end user customer tariffs Ø NCRE incentives are technology specific and based and actual energy supplied to the grid 24/06/2016 6

7 Electricity Generation Installed Capacity Generation (GWh) Source Capacity MW Hydro 1357 Thermal 544 Coal 900 IPP-Thermal 574 NCRE 557 Total 3,932 Peak Demand 2,358 MW System loss 10% 24/06/2016

8 Energy Mix 24/06/2016 8

9 Status of Non-Conventional Renewable Energy Sector (as at 18/12/2015) Description Commissioned Projects Project type No. of Projects Capacity (MW) Mini hydro Power Wind Power Biomass-Agricultural & Industrial Waste Power Biomass- Dendro Power Solar Power Total Commissioned Net Metering 24/06/2016 9

10 NCRE Project Development-Capacity Additions (up to 2015) Capacity(MW) Cumulative no of projects Energy(GWh) Series Year Energy % 9.9% 1200 Percentage on Total Energy % 6.3% % 5.5% % 3.7% 3.5% 3.2% % Series Year 24/06/ Target NCRE 20% by 2020 By Generation

11 24/06/

12 Number of Consumer Accounts - Household (Domestic) Institute CEB 2,491,349 2,648,988 2,823,654 2,988,2233,203,049 3,409,440 3,608,347 3,781,674 3,958,829 4,165,738 4,391,410 4,589,929 4,768,229 4,967,395 Leco 303, , , , , , , , , , , , , ,329 Total 2,794,408 2,964,337 3,151,534 3,326,8533,556,316 3,776,908 3,986,650 4,172,133 4,352,418 4,578,196 4,810,239 5,024,077 5,208,359 5,417,724 New connections 169, , , , , , , , , , , , ,365 Electrification Level 24/06/2016 %

13 Challenges in the Distribution System Although the electricity grid has penetrated to many parts of the rural areas a considerable number of households, especially the poorest of poor, are constrained from being connected to the national grid, due to their inability to pay the initial cost of connectivity Electrification of Isolated Islands in the country (Extension of National Grid is not feasible to electrify these Island) Improvement ofthereliability and service quality ofthe power delivery 24/06/

14 Electrification of Isolated Islands using Hybrid power systems It is expected to electrify three Islands first formation of mini grids by hybrid power systems those first three Islandsare Deft,Anilathevu, Nainatheivu. Redefining of the Industrial classification of electricity consumers to meet the socio-economic demand and to provide benefits tosmall scale ruralenterprises. A cabinet memo was submitted to propose new methodology for applicability of industrial tariff which is globally accepted and hence acceptance of the consumer groups, in order to encourage sustainable industrial development in ruralareas. Capital costof kv connectionsup to 50 m by the government. The government decided to bear the chargers for obtaining of electricity service connection up to 50 meters for small and medium scale industries. Accordingly considerable amount of capital cost for kv connection for small and medium scale industries and enterprises will be reduced to facilitate such business development and improve competitiveness of their economic activities. Electricity connectionfacilities by the government up to 50m of the Household. Under the Lighting Sri Lanka Project this was introduced in 2011 and facilitate for low income families to get electricity service connection within Samurdhi Loan amount, and it is continued. 24/06/

15 Low Interest Loan Facility for Electricity Connections Rural Household Connection Programme Loan programmes with the foreign funded assistance in five Districts from Under the Loan scheme up to 40,000 Rupees could be obtained for the service connection as well as house- wiring. The loan is recovered in 72 equal monthly installments through electricity bill. Some households have not been connected to the grid although accessibility and concessionary loans are available. These families are identified through the grass root administrative structure of the country and encourage get connected to the national grid. 24/06/

16 Flexible Approach from experience Ø Earlier application form used for households for electrical connection was complicated as it was commonly designed for different tariff categories. But new simplified application has been introduced for families under loan facility. Ø Having electrical connection to a certain premise was considered as supporting factor for rights of the occupant when the legality of the occupancy is in question But now the position is different as new circular has been issued to the effect that such position is not valid further. Ø In spite of some quality and reliability issues, electrical accessibility was continuously enhanced. The quality and reliability issues was addressed in a parallel approach. 24/06/

17 Solar Home Systems Small Hydro 24/06/2016

18 24/06/

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