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
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
Sri Lanka
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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 3,087.6 + 450 = 3,537.6 MW Source: SLSEA, 2012
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
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 2015. 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 1995 94% 6% 0% Actual 2000 45% 54% 0% 1% Actual 2005 36% 61% 0% 3% Moratorium on power plants burning oil or similarly priced oil/gas products 2010 42% 31% 20% 7% Progressive diversification into coal and NRE Moratorium on power plants burning oil or similarly priced oil/gas products may be 2015 28% 8% 54% 10% lifted
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. 40 - Hidden subsidy of about Rs. 4.50-6.00 per kwh by power plants fired by heavy fuel oil - Petroleum imports increased from $2.9 Billion to $4.8 Billion in 2011 - Fuel subsidies removed Impact of Petroleum Product Imports on Trade Balance (in million US$) 2005 2006 2007 2008 2009 2010 % Total Exports 6347 6883 7640 8111 7085 8307 Country Total Exports as an Index 18,74 20,32 22,56 23,95 20,92 24,53 Total Imports 8863 10254 11296 14091 10207 13512 100,00% Crude oil Imports Price C&F US$/bbl 51,87 65,11 71,96 97,65 62,53 79,24 Petroleum Imports 1730 2164 2489 3316 2164 2981 22,06% Petroleum Re-Exports 131 107 75 255 256 257 Net Oil Imports 1599 2057 2414 3061 1908 2724 20,16%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 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 12000 10000 8000 6000 4000 2000 0 Hydro Non-Conventional Thermal
NRE At a glance Projects Type Project in Operation Projects with EP No. MW No. MW Mini Hydro 95 206 117 209 Biomass Dendro 1 0.5 15 85.5 Biomass-Agricultural & Industrial Waste 2 11 4 6 Waste Heat Recovery 1 0.1 - - Solar 3 1.36 - - Wind 5 33.85 9 89.15 Total 107 252.81 145 389.65 2012 Data
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Gross Electricity Generation (GWh) Installed Capacity (MW) NRE Contribution 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 200 180 160 140 120 100 80 60 40 20 0 Wind (GWh) Biomass (GWh) Hydro (GWh) Hydro (MW) Biomass (MW) Wind (MW)
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
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
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 1.750 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
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
Waste to Energy Currently approx 3.500 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!
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
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)
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!
Thank You!