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Sampur Solar Power Plant:Sri Lanka and India agree on unit price

Sampur Solar Power Plant:Sri Lanka and India agree on unit price

28 Jul 2024 | By Maheesha Mudugamuwa


  • Unit price set at $ 0.0680 per unit
  • PPA pending  

India and Sri Lanka have agreed on the unit price for the 50 MW Sampur Solar Power Plant, setting the rate at approximately $ 0.068 per unit, The Sunday Morning learns.

The Power Purchase Agreements (PPAs) between India’s NTPC Ltd. (formerly known as the National Thermal Power Corporation) and the Ceylon Electricity Board (CEB) are expected to be signed soon, reliable sources have confirmed to The Sunday Morning.

A senior official from the Ministry of Power and Energy who wished to remain anonymous told The Sunday Morning that the relevant authorities of the two countries had last week agreed on the unit price for the Sampur Solar Power Plant. 

However, the signing of the PPA is still pending.

The solar power plant was proposed following the cancellation of a controversial coal power plant. The project faced significant delays over the past several years due to issues in finalising the energy transmission line and the PPA.

The Sri Lanka Sustainable Energy Authority (SLSEA) has already issued the necessary energy permit for the construction of the power plant and the transmission line. The finalisation of the PPA now rests with the CEB.

In 2022, India’s NTPC Ltd. signed an agreement with the CEB to jointly establish a solar power plant in Sampur, Trincomalee. 

This new agreement came a decade after the original joint coal power project deal was signed and subsequently scrapped. Despite the passage of several years since these agreements between NTPC Ltd. and the CEB, there has been little visible progress on the project.

In May, the Government approved a 20-year PPA with Adani Green Energy to establish wind power facilities totalling 484 MW in Mannar and Pooneryn. The proposal, led by Power and Energy Minister Kanchana Wijesekera, received the Cabinet of Ministers’ approval.

According to the proposal, the electricity tariff for the project is set at $ 0.0826 per kW, with payments to be made in Sri Lankan Rupees based on the prevailing foreign exchange rate over the 20-year period.

Announcing the decision, the Power and Energy Minister stated on his X account: “Considering the current exchange rate of $ 1 = Rs. 300, the energy cost translates to Rs. 24.78 per kWh. This contrasts with the current average energy cost in Sri Lanka, which is Rs. 39.02 per kWh.”

Against such a backdrop, when asked about the price difference between Adani’s investment and the Sampur investment, the Power Ministry official clarified to The Sunday Morning that Sampur would be a solar power plant, whereas Adani was investing in a wind power plant. 

Additionally, the official noted that the Sampur project would proceed with a soft loan from the Asian Infrastructure Investment Bank (AIIB).

As per the Long Term Generation Expansion Plan (LTGEP) (2023-2042), the Sampur Solar Power Project, part of the North Eastern Renewable Energy Zone, is planned in two phases. 

Phase I, set for 2026, will focus on constructing the Kappalthurai-Sampur 220 kV transmission line, which will operate at 132 kV. 

Phase II, scheduled for 2027, will include the development of several additional key infrastructure elements: the New Habarana-Kappalthurai 220 kV transmission line, Sampur 220 kV collector station, Kappalthurai-Trinco 2 Deve 220 kV transmission line, and Trinco 2 Deve 220 kV collector station.



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