The Power Purchasing Agreements (PPAs) signed with Private Power Plants (PPPs) last September to procure 120 MW of emergency power, addressing deficits during the drought in the southern part of the country due to prevailing dry weather conditions, will not be extended further, according to the Ceylon Electricity Board (CEB). 

The PPAs are set to expire at the end of this month.

Instead of extending the emergency PPAs, the board is currently in the process of procuring supplementary power. 

In response to immediate electricity supply gaps, the CEB has obtained 120 MW of emergency power from Ace Power Embilipitiya (100 MW) and Matara (20 MW). 

The urgency arose due to the depletion of the Samanalawewa reservoir, linked to the Udawalawe reservoir, which had dried up last year, necessitating Cabinet approval to ensure uninterrupted power supply to the Southern Province.

Speaking to The Sunday Morning, a senior CEB official said that supplementary power would be procured considering the unit prices offered by the power plants, aiming to utilise more cost-effective options than the CEB’s own power plants. 

When asked about the capital cost the board would have to bear when purchasing supplementary power, the official stressed that all aspects would be considered.

The CEB has floated 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. 

As reliably learnt by The Sunday Morning, discussions are underway to initiate a new tender instead of finalising a supplier under the previously floated tender last year. 

Despite receiving Expressions of Interest (EOIs), there had been several issues in finalising them due to technical challenges. One of the EOIs includes a barge-mounted power plant, as reported by The Sunday Morning.

Although Cabinet approval for acquiring this supplementary power was secured in 2022, the urgency for emergency power caused a shift in priorities, leading to the delay in procurement. 

Power and Energy Ministry Secretary Sulakshana Jayawardena told The Sunday Morning that supplementary power would be considered not to meet any deficit in the grid but to reduce the CEB’s generation costs.