Renewable Energy Policies in Sri Lanka - the needs and potentials for additional international support Asoka Abeygunawardana Adviser to the Hon. Minister of Power and Energy- Sri Lanka Executive Director- Energy Forum
Sri Lanka An island in the Indian Ocean Lower middle income country Land area (square km) - 65,610 Population - 20 m Total Households - 5.3 m On grid Commercial entities - 400,000 On grid Government Institutions - 134,000 On grid Hotels - 546 On grid Industries - 43,000 Per capita energy consumption (toe ) - 0.478 (lower middle income country average of 1.02 toe) Per capita CO2 emissions (tons/y) - 0.62 (World average 4.29) SRI LANKA
Power Sector in Sri Lanka SLSEA Regulator - PUCSL GOSL / Ministry Independent Power Producers (oil & RE) CEB Transmission CEB Generation CEB Dis 1 CEB Dis 3 CEB Dis 3 CEB Dis 4 LECO Off grid Consumers
98 < 95 98 90 95 85 90 72 10 44 68 16 Electricity for everybody, everyday 85 40 70 50 80 80 85 70 80 60 70 50 60 40 50 40> 73 60 85 75 90 10 0 10 0 86 90 98 79 88 96 91 86 84 10 0 84 82 89 60 71 95 95 90 87 94 90 94 98 90 90 90 93 75 85 electrification by the end of 2012
5000 4500 4000 3500 3000 Business as usual Generation Expansion Plan of Sri Lanka Coal - 4000 MW; 85 of the capacity by 2025 generation 2010 2011 2012 Renewables 52 37 33 Oil - 50 52 Coal 48 13 15 2500 2000 1500 0 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cumulative new Oil Cumulative new Hydro Cumulative Coal MW Oil
Renewable Energy policy in Sri Lanka Planning and Strategy Official targets for renewable energy 2010-40 renewables (large hydro) 2016-60 demand increase 2016-38 renewables (large hydro+ NCRE- 10) 2020 demand increase Demand side management 10 2020-43 renewables (large hydro+ NCRE- 20) Statements of intend Carbon neutral growth by 2020 Start carbon reduction by 2030
FiT in - Sri Lanka Avoided Generation Cost - early 1990 Generated enthusiasm for mini-hydro power Lack of transparency in calculating the actual avoided cost Hidden subsidies given to fossil fuel Technology Specific Financial Cost Reflective Tariff - (Flat and 3 - tier) - 2007 Generated enthusiasm for mini-hydro and wind power There was no way to meet the additional cost Above 25 MW - should have government shares Between 10 MW to 25 MW - negotiated price - Private companies Less than 10 MW - First come first serve basis - Private companies
2010-6.5 800 700 Small Renewables (GWh) 600 500 400 300 200-1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
The state of play of renewable energy policy in Sri Lanka Generation-Based Incentives/Feed-in-Tariffs (FITs) FIT and its basic features: The tariffs and the Special Power Purchase Agreements for projects with a rated generating capacity up to 10 MW are: first come first serve standardized non-negotiable cost-based sources - specific technology-specific either a three-tier tariff or a flat tariff valid for a period of 20 years extendable by mutual consent
Flat Tariff in 2011 Technology All inclusive rate for years 1-20 (LKR/kWh) (USD Cts/kWh) Mini-hydro 13.04 11.54 Mini-hydro - Local 13.32 11.79 Wind 19.43 17.19 Wind - Local 19.97 17.67 Biomass (Dendro) 20.70 18.32 Biomass (Agricultural & Industrial Waste) 14.53 12.86 Municipal Waste 22.02 19.49 Waste Heat Recovery 6.64 5.88 Other 20.70 18.32 Ex rate: USD1=LKR 113
FiT in Sri Lanka - Flat tariff All inclusive rate for years 1-20 (LKR/kWh) 25.00 20.00 15.00 10.00 Mini-hydro Wind Biomass Agricultural & Industrial Waste Municipal Waste Waste Heat Recovery Wave Energy 5.00-2007 2008 2009 2010 2011
Small renewable energy power plants Biomass Mini Hydro Solar Wind All REPs No MW No MW No MW No MW No MW Commissioned 3 13 87 189 4 1 4 31 98 234 Under Construction 15 74 112 211 10 99 137 384 Valid Provisional Approval 7 81 37 41 1 10 46 142 Total committed at present 25 167 236 441 5 11 14 130 281 759 Wind Farm 1 1 Solar Farm 1 1 Total Total Committed at present 2000 GWh/y 13 by 2016 Total with parks 2430-16 by 2016 Geo Thermal - PA - 10 MW; Applied - 109 MW Sea Wave - Applied 3 MW
Policy cost - Cost of Energy 45.00 40.00 35.00 30.00 Mini hydro Wind Biomass dendro Coal 2y 25.00 20.00 15.00 10.00 5.00-1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Escalation due to inflation : fuel - 5.09; O&M -7.64 Escalation due to scarcity of coal resources: 3
Estimated Renewable energy potential in Sri Lanka Hydro Power Potential - 1960 MW @ 40 pf (1290 MW all ready tapped) Dendro Power Potential - 900 MW @ 70 pf; BEASL estimate - 3,000 MW Wind Power Potential - 3000 MW @ 30 pf; NREL estimate 20,000+24,000 MW Solar Power Potential - 4.5 to 6.0 kwh/m2/day @ 16 pf Wave Power Potential - 200 MW @ 65 pf; NARA estimate- 2000 MW) OTEC Potential -Trincomalee Canyon is the one of the world best places Geothermal Potential - 30 MW (GSMB estimate)
Pump Storage Solution Major Technical issue to be addressed - systems ability absorb fluctuations Potential sites Samanalawewa (Keriketi Oya) 0 MW Maussakele (Adam's Peak Falls) 500 MW Randenigala (Halgran Oya) 500 MW Kotmale (Maha Oya, Gurugal Oya, Kuda Oya) 900 MW Upper Kotmale (Dambagastalawa, Agra Oya) 600 MW Total 3500 MW 500 MW plant: capital - 360 to 500 million USD - 730 0 USD/kW Discussions are currently under way.
International Support Generation and Transmission expansion planning (Technical & Capacity building) Concessionary financial support (Financial) Subsidy reforms (Technical) FIT for other renewable energy technologies such as Solar PV, Concentrated Solar Thermal (Technical and capacity Building) Study on Wave Power, Geothermal and Ocean Thermal Energy Conversion (OTEC) (Technical & Capacity Building) Biomass collection, storage and clearing houses (Financial) Pump Storage (Financial & Technical) Smart Grid for the Sri Lankan Power System (Financial, Technical & Capacity Building) Civil Society Strengthening (Capacity Building) for achieving new renewable energy targets