Socio-economic impacts ofdendrothermal powergeneration in rural Sri Lanka:a case-studyN.R. Jayasinghe

Lanka Transformers Ltd, 154/11, Station Road, Angulana,Moratuwa, Sri LankaE-mail: rukmal@ltl.lk

W. Rupananda

Department of Economics, University of Ruhuna, Matara,Sri Lanka

M. Hettigama

23/137, Pagoda Road, Nugegoda, Sri Lanka

1. IntroductionSri Lanka produces 49 % of the total energy it consumesfrom biomass in the form of fuel-wood [CBSL,2004].During the last decade electricity generated from fuel-wood (dendrothermal electricity technology) has been ex-tensively discussed among bioenergy experts in thecountry, and recently the government of Sri Lanka iden-tified dendrothermal technology as an indigenous resourcefor large-scale electricity generation with the objective ofgradually moving away from the use of fossil fuels.

Sri Lanka�s electricity generation capacity is still basedon hydro- and thermal-based systems with an averageelectrification rate of 65 % [CEB,2005]. Even though thenation-wide average electrification rate is 65 %, locallythe electrification rate varies significantly from 20 % ofhouseholds in some rural districts to almost 92 % in thecapital, Colombo. It is estimated that, due to network con-straints, only 80 % of households in the country can beeconomically connected to the national grid after com-pleting all proposed rural electrification programmes, onlyoff-grid options are available for the remaining 20 % ruralhouseholds, and the dendrothermal option is identified aspromising for off-grid rural power supply in the years tocome.

Studies done by the Bioenergy Association of Sri Lankahave identified that there is a vast potential to developdendrothermal power generation in Sri Lanka, and esti-mates show that the capacity can go up to 4000 MW,which is adequate to meet our electrical energy demandfor many decades. Apart from the direct benefit of sup-plying electricity, dendrothermal power in particular canbe directly coupled with the agricultural sector in SriLanka in terms of fuel-wood supply.

2. Present status of dendrothermal powergeneration in Sri LankaEven though there is a huge potential for dendrothermalpower technology in Sri Lanka, almost none of this po-tential has been realised. There are only one grid-con-

nected 1 MW pilot plant operated by Lanka TransformersLtd in the Central province and one off-grid 3.5 kW com-munity-based small-scale plant in Uva province. Detailsof these plants are shown in Table 1. Also there are twoindustrial stand-alone plants operating, using bagasse asfuel and supplying energy to the two sugar mills in thecountry.

3. Objective of the studyThe main objective of this study was to identify changesin household energy, household welfare, and people�s per-ception of electricity, and to compare the positive impactsof the two sites at which dendrothermal power is beinggenerated, placing the emphasis on the promotion of in-come-generating activities, rural employment, improve-ment of quality of life, barriers to the development ofsuch schemes, and measures to overcome them.

The evaluation of the socio-economic impacts wasbased on the information given by the qualified engineersinvolved in commissioning both plants.

4. Case-study I: impact evaluation of 3.5 kWdendrothermal plant4.1. Plant statusThis plant (shown in Figure 1) is located at Endagalayayavillage, located 300 km east of Colombo in Uva province.The village has 50 households. The entire project wasfunded by an individual and handed over to the villagesociety for operation in 2004. The main income sourceof the village is chena cultivation (similar to shifting orslash-and-burn cultivation), the average per capitamonthly income being around US$ 40.

The fuel-wood for the plant was identified as Gliricidiasepium. The fuel-wood plantations are managed by thevillagers themselves, mainly alongside their chena culti-vation. The village community is responsible for supply-ing the fuel-wood for the day-to-day operation of theplant. The village has to supply 70 kg of fuel-wood foreach day�s operation. The distribution network spans acircle of 1.5 km radius, entirely by underground cable.4.2. Fuel choice and fuel-switchingOne of the objectives of rural electrification is that it en-ables households to switch from lower-quality fuels toelectricity for their energy services. It is expected that this

Table 1. Parameters of the plants

Capacity 3.5 kW 1.25 MW

Mode Off-grid Grid-connected

Distance from thenational grid

10 km -

Operation By the villagecommunity

Utility-ownedcompany

No. of households 50 National grid

No. of hours/day 4 24

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substitution will generate a range of social, environmentaland economic benefits. Many of the benefits thus dependon the extent of fuel substitution that occurs. Before thedendrothermal plant was set up almost all the householdsin the village used kerosene lamps for lighting. After thepower plant was installed each household was providedwith three compact fluorescent lamps for lighting (Figure 2shows an electrified household). For other purposes suchas cooking and heating they still depend on the direct useof biomass due to the limited capacity of the dendrother-mal power plant. Also, before the power plant was com-missioned households used dry-cell batteries for their

radios, but after electrification they switched to lead-acidbatteries as, with the power house, a battery-charging fa-cility was provided. With the introduction of this facilitythe number of TV sets used in the village has increased.It is further expected that an electric water-pumping fa-cility will be set up in the village in the near future.4.3. Perceptions of quality of lifeA number of previous studies have reported that people�squality of life is improved by electrification [Schramm,1993; Cecelski, 1992; Barnes, 1988; Munasinghe, 1987].Findings from this study indicate that electrification hasimproved household welfare, but mostly as a consequenceof electric lighting. Almost all the households in the vil-lage note that electrification has resulted in getting rid ofdirty and dangerous kerosene lamps, ability to study inthe evenings, etc. But the supply limitations in terms ofcapacity and supply timings are the main disadvantage,since the households would prefer to use electricity forother services as well.4.4. Time savings and extended length of dayIn this study it was evident that electrification has ex-tended the length of the villagers� active day. In most ofthe electrified houses people were staying up longer atnight than they did before electrification. This extendedtime is being used for children�s studies, watching TV orlistening to the radio or interaction among family members.4.5. Perceptions of safetyAccess to electricity has improved safety and security, ac-cording to the people�s perceptions. With the introductionof the electrification, apart from household lighting, streetlighting (see Figure 3) was installed in the village andit was found that the improvement of safety is verysignificant.

The presence of wild elephants in rural areas poses athreat to agriculture and the livelihood of villagers. Ele-phants usually raid crops during the dry season whenreadily available food sources are depleted and the ani-mals are forced to seek out other sources. For farmers thedry season is usually a period of more capital-intensiveproduction due to the use of pumps and lower yields dueto damage by elephants.

Endagalayaya village is a regular victim of the human-elephant conflict, which is a common feature in the aridareas of Sri Lanka. At least once a month wild elephantscrash into villagers� chena plots and destroy their cropsand equipment. But with the introduction of illuminationthe number of attacks has fallen to negligible levels be-cause the outdoor lighting has successfully deterred theelephants. This can be considered one of the biggest bene-fits for the village.4.6. Perception of access to modern technologyThe implementation of renewable energy technologies inrural areas can have more basic and important effects,especially if they are deployed in very underdevelopedareas. The perception of modernity and the recognition ofthe technology as an instrument that effects immediateimprovements in the quality of life is important in thisregard. The link between technology and welfare maytherefore act as a triggering mechanism for further social

Figure 1. The power house at Endagalayaya

Figure 2. An electrified household

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development [Miguel and Carlos, 1997]. Dendrothermalpower generation technology is still new to Sri Lankancommunities and the villagers benefiting from it takepride in having access to a technology which works withtheir involvement. This technology is not a �plug andplay� technology like a solar home system. The villagersparticipate in supplying fuel-wood for the plant on a dailybasis from their fuel-wood plantations and the system har-monises well with the environment.4.7. Impact on the culture of the villageThe creation of the village society in Endagalayaya is byfar the best example of how such a project can build localcapacities and strengthen the unity of the village. As astrong society it has the ability to levy fines on peoplewho are late with their monthly payments. Communitymeetings have been instrumental in solving problems andcreating strategies that include the entire village. The vil-lagers have gone on to undertake large-scale projects suchas a community centre to be used as a pre-school and acentre for adult education. Greater social cohesion andability to undertake large projects were identified as anadditional benefit and were a source of pride for the entirevillage.4.8. Income generation and economic activitiesIt is evident that the project does not seem to have hada significant impact on the growth of direct income-gen-erating activities. This is mainly due to the limited powerof the dendrothermal plant. The only direct employmentopportunity generated was that of the technician who op-erates the plant. But on the basis of discussions withwomen in the village it was found that electric lightinghas made extra income-generating opportunities such asmaking mats out of palm leaves and dress-making muchmore productive. It has also encouraged many women toconsider starting their own business.

5. Case-study II: evaluation of impact of 1 MWgrid-connected dendrothermal power plant5.1. Status of the plantThis 1 MW power plant (shown in Figure 4) was de-signed and commissioned by Lanka Transformer Ltd. asthe first grid-connected dendrothermal power plant in theisland. It is situated in Walapane in the Central province.The species to be used for planting was identified asGliricidia sepium and the fuel-wood is supplied mainlyby large-scale fuel-wood planters and also by the sur-rounding communities on a small scale.

The analysis of the socio-economic benefits of theproject was limited to economic (direct and indirect)and technical aspects as the Walapane area was alreadyelectrified.5.2. Socio-economic benefitsThis plant has had a significant impact on creation ofemployment for the surrounding community and peopleinvolved in the fuel-wood supply chain (Figure 5). Asshown in Table 2, the plant employs 12 persons from thesurrounding community and around 1000 people are em-ployed in fuel-wood plantations, wood collection, wood-cutting, transportation, chopping, and drying and as

Figure 3. Street lighting

Figure 4. The power plant at Walapane

Table 2. Employment generated by 1 MW plant (direct and indirect)

Plant operators 12

Fuel supply 1000

Figure 5. Fuel-wood supply chain

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helpers. Figure 6 shows fuel-wood being prepared.Around US$ 30,000 is injected monthly into the fuel-wood plantation sector connected to this plant, the aver-age income per person per month being around US$ 30in addition to their regular income from other work. Thus,this is a totally new income source for the people involvedin the plant operations. The plant is operated through awell-managed supply chain run by an experienced plan-tation company of Sri Lanka.Further, about 45 peoplework daily around the dendrothermal plant in its operationand fuel-wood transportation. Their presence has creatednew commercial activities near the plant to supply themwith food and other consumables.5.3. Improvement of reliability and the quality ofpower supplyEven though this dendrothermal plant is grid-con-nected, serious power quality problems were experi-enced by the surrounding community before the plantwas commissioned.

The figures in Table 3 show that the frequency of poweroutages has fallen by 95 % due to the proper maintenanceof the 33 kV transmission line which is connected to themini-grid to which the power plant is connected.

There was also a major complaint of low voltages (evenbelow 180 V) in the supply to the consumers during thepeak hours in the area. This power quality issue was alsoresolved by the installation of this plant as it maintains

the proper transmission voltages.

6. ConclusionsStudies have revealed that both the dendrothermal projectshave contributed to greater social welfare in two differentways. In Case-study I the off-grid mini-dendrothermalelectrification scheme has contributed to upgrading theliving standards of villagers in terms of quality of life,longer study hours for children, access to the outsideworld through TV and radio, preparation of better foodand much cleaner and safer environment. It has also cre-ated a safer environment, especially in the dry season,and has improved the productivity of day-to-day and in-come-generating activities.

In Case-study II the grid-connected dendrothermal planthas generated additional income for the surrounding com-munity through its involvment in fuel-wood supply andhas mitigated some of the power quality problems.

These two cases can be considered two basic modelsof how dendrothermal power technology could be imple-mented in rural communities. The small-scale off-griddendrothermal plant will be a better option for agricul-ture-based rural communities living far away from thegrid. Such communities will not have to depend on ex-ternal fuel supply as fuel-wood farming can be integratedwith their existing agricultural activity.

The grid-connected model very clearly indicates howdendrothermal power technology can be implemented ona larger scale, contributing to ensuring the energy securityof the country. It will create a significant amount of em-ployment opportunities and income sources and will en-sure fair distribution of resources among ruralcommunities.

The country needs to provide the necessary incentivesto encourage dendrothermal power generation by remov-ing policy, institutional and financial barriers which areholding back the development of this technology.

Acknowledgement

The authors are grateful to Indika Gallage of Enerfab Pvt. Ltd. and Iresha Somaratne ofLanka Transformers Ltd. for their assistance.

References

Barnes, D., 1988. Electric Power for Rural Growth, Westview, Boulder, Colorado.

Cecelski, E., 1992. �Enhancing socio-economic and environmental impacts of rural electri-fication�, in Saunier, G., (ed.), Rural Electrification Guidebook for Asia and the Pacific, AsianInstitute of Technology, Bangkok.

Central Bank of Sri Lanka (CBSL), 2004. Annual Report 2004.

Ceylon Electricity Board (CEB), 2005. Long Term Generation Expansion Plan 2005-2019.

Miguel, A., and Carlos, J., 1997. The Socio-economic Impact of Renewable Energy Projectsin Southern Mediterranean Countries: Methodology, Institute of Prospective TechnologicalStudies, Seville

Munasinghe, M., 1987. Rural Electrification or Development: Policy Analysis and Applica-tions, Westview, Boulder, Colorado.

Schramm, G.,1988. �Electrification programmes and the role of international developmentbanks�, in Proceedings of the Conference on ISES Utility Initiative for Africa, Johannesburg,March 1998

Figure 6. Fuel-wood preparation

Table 3. Power quality indicators for 1 MW power plant

Power quality problem Beforeinstallation

Afterinstallation

Power outages 35 per week 2 per week

Voltage fluctuations 180-230 V 220-230 V

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