- Rs. 206 m paid by CEB for 6.29 GWh per month
- Suggests over Rs. 1.5 b extra for ’24 capacity charge
- Plans to procure 100 MW supplementary power
- No decision yet on extending PPAs with IPPs
The State-run Ceylon Electricity Board (CEB) is currently paying millions of rupees per month as the capacity charge for the 100 MW of emergency power purchased last year, The Sunday Morning learns.
It is learnt that the emergency power plants only generate an average of 6.29 GWh per month. However, the CEB is paying a total of Rs. 206 million as a capacity charge per month on average for the procured power plants.
In response to immediate electricity supply gaps, the CEB had obtained 120 MW of emergency power from Ace Power Embilipitiya (100 MW) and Matara (20 MW).
The urgency arose from the depletion of the Samanalawewa Reservoir, linked to the Udawalawe Reservoir, necessitating Cabinet approval to ensure uninterrupted power supply to the Southern Province.
As per CEB statistics, as of 26 January, the CEB has generated 12.39 GWh of hydropower, 19.46 GWh of thermal coal power, 3.78 GWh of thermal oil power, 0.82 GWh of wind power, 2.34 GWh of solar power, 0.46 GWh of biomass power, 2.89 GWh of mini hydropower, and 0.66 GWh of wind power.
The independent thermal oil power plants have not generated electricity on 26 January.
In such a backdrop, concerns have been raised over the inclusion of the 100 MW of emergency power in the CEB’s dispatch forecast.
Despite the extremely low utilisation of emergency power procured in 2023, as revealed by the Public Utilities Commission of Sri Lanka (PUCSL), the CEB has included 100 MW of emergency power in the dispatch plan without any approval from the commission.
Accordingly, the commission has sought clarification from the CEB regarding the inclusion of 100 MW of emergency power in the dispatch forecast.
The PUCSL has raised concerns as the CEB has proposed to purchase emergency power in 2024 as well, despite extremely low utilisation of emergency power, with an additional capacity charge of Rs. 1,594.84 million for 2024.
Meanwhile, as reported last week, the CEB is planning to float a new tender to procure nearly 150 MW of supplementary power to address the expected deficit during the upcoming dry season, starting from the end of March.
Cabinet approval for acquiring this supplementary power was secured in 2022; however, the urgency for emergency power caused a shift in priorities, leading to the delay in procurement.
Although the already-procured emergency power agreements are expected to expire by the end of next month, the board is yet to decide whether to extend Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) currently providing emergency power.
Meanwhile, when contacted, PUCSL Corporate Communications Director Jayanat Herat confirmed that the PUCSL had sought several clarifications from the CEB but had not received any response as of Friday (26).
Meanwhile, CEB Spokesman Deputy General Manager Noel Priyantha admitted that there would be a deficit of around 150 MW in April if there were no rains and, therefore, the board would need to procure supplementary power.
He also noted that a Zoom meeting had been held between the PUCSL and CEB on Friday.
Priyantha said that during the meeting, the CEB had clarified the questions raised by the PUCSL, which included the specific questions regarding supplementary power purchasing. He added that the CEB would seek the PUCSL’s approval before procuring emergency power this year.
Another CEB senior official who wished to remain anonymous said that the procuring of supplementary power was still under discussion and that no final decision had been made yet and therefore approvals would be sought when the process commenced.