Monday, May 27, 2013

Like it or not,Sampur coal plant necessary – Engineers


If the government failed to speed up and add 500 MW from the proposed Sampur coal-fired power plant in Trincomalee by 2018, the country would have to pay Rs. 42 billion annually to generate power from other sources, a senior engineer said.



Ceylon Electricity Board (CEB) Engineers’ Union (CEBEU) President Nandika Pathirage told The Island that the CEB would have to incur a loss of about six billion rupees due to teething problems. However, he stressed that it would become zero after three years.



If the CEB missed the opportunity to produce 500 MW from coal, it would have to depend on costly gas turbines, diesel plants etc, the senior engineer said.



Meanwhile, The Island reliably learns that the Public Utilities Commission of Sri Lanka (PUCSL), the energy sector’s regulatory authority, is in the process of requesting the CEB to submit a copy of power purchasing agreement and other documents prior to giving the go ahead to the construction of the plant in Trincomalee.



Despite claims by the energy sector officials that Sri Lanka would lose between Rs. 10 to 14 billion annually due to the alleged unfair power purchase agreement that the Indian joint venture partner, the National Thermal Power Corporation, was insisting on, the government would go ahead with the controversial PPA for the 500 MW plant.



Some senior CEB engineers said that a unit of electricity produced at Sampur would cost Rs. 18.00 as against Rs. 13.00 from the first coal fired plant at Norochcholai built by the Chinese.



"Even the price of Rs. 13.00 per unit at Lak Wijeya in Norochcholai is high, but if we could stick to that amount it would be better for the country in rupee terms and the fuel efficiency in Sampur would be much lower than at Norochcholai," a senior engineer said.



NTPC and the CEB, on Sept. 5, 2011, signed the joint venture and shareholder agreement to set up a USD 500 million 500 MW (2X250 MW) coal power station in Sampur, Trincomalee.

By Ifham Nizam

1 comment:

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