MINI HYDRO POWER DEVLOPMENT IN SRI LANKA - INITIATIVES

Eng. P.L.G. KARIYAWASAM

Deputy General Manager (Energy Marketing)

CEYLON ELECTRICITY BOARD

Content

Introduction Whether Pattern & Geography Background to Grid Interconnection Grid Interconnection Small Power Purchase Agreement Features of SPPA Technical Consideration

Important Data Important Data (2011)(2011)

Population - 20.6 million

Area - 65610 sq km

Elec. Cons. - 480 kWh/person

Ene. Cons. - 0.43 TOE /person

Annual Rain Fall - 1500 – 6000 mm

Humidity - 70% (Day), 90% (Night) Avg. Temp - 30 oC

Introduction

CEYLON ELECTRICITY BOARD IS THE SINGLE BUYER OF ELECTRICITY

POWER SECTOR REGULATOR INTRODUCED IN YEAR 2009

SINCE EARLY 1990S PRIVATE SECTOR HAS BEEN ALLOWED TO BUILT, OWN AND OPERATE SMALL HYDRO POWER GENERATION.

ALL PRIVATE POWER MUST BE SOLD TO THE CEB GRID.

POWER PLANTS OVER 10 MW SIGN INDIVIDUAL PPAs.

RENEWABLE ENERGY BASED POWER PLANTS UP TO 10 MW SIGN A STANDARD PPA VALID FOR 15-20 YEARS.

Electric Power Generation Capacity - 2011Installed Capacity:

Hydro Power - CEB 1207 MW - Private 548 MW

Thermal - CEB 848 MW - Private 842 MW

Wind - CEB 3 MW - Private 47 MW

Maximum Demand – Day 1626.6 MW on 20.05.2011 - Night 2163.1 MWNational Electrification Level – 91 %Share of Electricity to Total Energy – 9.4%

Power & Energy - Demand      Installed Capacity in MW Energy Generation in GWh

    2004 2006 2008 2010 2004 2006 2008 2010

                   

  Hydro Power CEB 1207 1207 1207 1207 2755 4290 3700 4988

  Private 74 109 150 175 206 346 435 646

  Thermal CEB 618 548 548 548 2507 1669 2083 1384

  Private 455 567 737 842 2064 3082 3680 3600

  WindCEBPrivate

30

30

30

312

2.70

2o

30

383

Gross Generation           9389 9901 10714

Maximum Demand Day 1104.6 1312.4 1402.7          

  Night 1563.4 1892.5 1922.2          

National Electrification Level 73.40% 78.10% 83% 83%        

Source - CEB Statistical Digest

Whether Pattern & Geography

Monsoons in Sri Lanka

- North East (NE) Monsoon- December –

February -  1st Inter Monsoon

- March – April - South West (SW) Monsoon

- May – September -  2nd Inter Monsoon

- October - November

History of MHP

Utilization of micro hydro energy in the plantation industry at the beginning of 20 th

century Mostly provided mechanical shaft power for

the industrial process machinery. Around 500 such plants in early 20th Century Around 50 such plants are in operation in

1990’s.

Background to Grid Interconnection of Small Hydro Power Official Committee was appointed in 1992 to study

Sri Lanka's power needs for the period 1991-2005. Recommended private sector participation in

MHP-development Appointment of Consultants to study  

Technical and legal requirements Power purchase policy Economic and financial analysis.Rehabilitation and modernization strategy.

Background to Grid Interconnection…

The final study report of the consultants was presented in November 1993. The Consultants main recommendations were,

• Establishment of technical standards for grid connection of MHP plants, and

• Formulation of a contract document containing all commercial and legal aspects concerning the relationship between CEB and the MHP plant owners

Background to Grid Interconnection….

First Estate MHP Plant (60 kW) was connected to the GRID in 1994

The first new Grid Connected BOO SHP was commissioned in

1995.

Initial Small Power Purchase Agreement Developed with assistance of the World Bank

Standardized Terms

Published Tariff based on CEB’s Avoided Costs

Applicable for; Capacity : Less than 10 MW Energy produced from :

– Renewable energy sources– Waste – Co-generation

Features of Initial Small Power Procurement Program of Ceylon Electricity Board

Term of the Contract : Negotiable

Transmission Interconnection : paid for by the developer

Interconnection Standard : BEA Engineering Recommendation G 59.1 and CEB Guidelines

Metering equipment : provided by CEB

Credit for energy delivery during the Dry Season

Power Purchase Guarantee by CEB: 100 %

Tariff : based on CEB’s Avoided Costs each year

Tariff : Payable in Sri Lanka Rupees, but calculated in US Dollars, using the prevailing exchange rates

Tariff stability : Assured by a 90% Floor price

Power Sector Policy

Power Sector Policy Directions 1997

- Hydro power generation potential of the country will be developed to its full potential

- Private sector financing will be utilized for power generation from small hydro power plants

Private Sector will be encouraged to develop non-traditional energy including Mini and Micro Hydro, Wind, and Solar Power up to a ceiling of 10% of the island wide demand for electricity. Dendro-Power development will also encouraged.

( (Page 10 of Proposed Power Sector Policy Guidelines November 2002)

Government Energy Policy Guidelines - Published in May 2008

High priority to energy sector Three important sections

Energy policy Elements Implementing Strategies Specific Targets and Milestones and Institution

Responsibilities

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Government Energy Policy Guidelines

Developers will be encouraged to develop non-traditional energy including Mini and Micro Hydro, Wind, and Solar Power up to a ceiling of 10% of the island wide demand for electricity. Dendro-Power development will also encouraged. – Target 2015

(Clause 4.4 of National Energy Policy May 2008)

Technical Consideration –CEB Guide for Grid Interconnection of Embedded Generation – Dec. 2000

This Guide is based on the requirements of Ceylon Electricity Board (CEB), Sri Lanka, and the conditions and constraints under which the CEB system operates. The primary intention of this Guide is to establish procedures and equipment to protect CEB personnel, equipment and the system from any harmful effects arising out of the interconnection and operation of Embedded Generators.

The total capacity of embedded generation is expected to be less than 6% of the peak load, and about 15% of the minimum load. Otherwise, review the guide accordingly.

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Guide for Practical Implementation of Grid-Interconnection Specification

Prepared a detailed design guidelines to assist project developers (mini hydro and other renewable power facilities upto 10 MW) in selecting and designing interconnections and electrical and Electro-mechanical equipment/systems to ensure that the the project meets the technical integration with CEB grid system

Key Factors for the SHP Development

Availability of profitable sites.

Availability of loan funding.

Availability of Technical Expertise

Reliable data to carry out feasibility studies available.

Prior history of SHP development in Sri Lanka.

The standard PPA and Technical guidelines.

BOI concessions

Data :- Statistical Digest - CEB

22

Village Hydro Power Plants

More than 150 plants are in operation

Capacity 500 W – 50 kW

Total capacity 1652 kW

Serving more than 6000 households

23

Off-Grid Renewable Energy Project Development Training

Training in all aspects (financing of renewable energy projects, including off-grid systems, analyses of technical, financial and institutional capabilities for preparation of project proposals) of off-grid subproject preparation to relevant CEB staff, the private sector and village co-operatives.

Low head hydropower projects- Turbine

Low head hydropower projects- Turbine

KEY FACTORS HELPING THE DEVELOPMENT OF THE SHP SECTOR

THE STANDARD PPA. AVAILABILITY OF LOAN FUNDING. AVAILABILITY OF PROFITABLE SITES. RELIABLE DATA TO CARRY OUT FEASIBILITY STUDIES

AVAILABLE. PRIOR HISTORY OF SHP DEVELOPMENT IN SRI LANKA. PLANT AND MACHINERY FREE OF DUTY. INCOME TAX CONCESSIONS. DEMONSTRATION PROJECT SUBSIDISED BY NGO. MANY OF THESE FACTORS APPLICABLE TO OTHER FORMS

OF RET BASED POWER.

(Dr Romesh Bandaranayake, CEO, ECO Power (Pvt.) Ltd.), 2000

Thank you