Wednesday, July 17, 2013

Net Metering in Sri Lanka


All electricity customers in Sri Lanka now have the opportunity to produce electricity using renewable sources of energy. A customer can "sell" that electricity to the grid at any time of the day.

What is "net" metering?

Imagine your electricity meter is replaced with a two-way meter. The meter will have two registers: the "import" register and the "export" register. You can produce electricity (using a renewable source of energy), and first use that electricity for your own requirements, and send the surplus back to the grid. Such "exported" electricity units will be registered in the "export" register of your meter.

During certain times of the day, your own electricity production may not be adequate for your requirements. Then your consumption will be recorded in the "import" register.

When the electricity meter is read once a month, you will pay only for the difference between the "import" and the "export". If in any month you have exported more than what you imported, your bill will only carry the monthly fixed charge (no charge for the units of electricity), and the excess exported units will be credited to your next month’s bill.


No financial transactions

As the term implies, in "net" metering, there is no "payment" by your electricity supplier for what you produce. LECO or CEB only agrees to let you "bank" your surplus electricity with them, and let you take it back whenever you want, at any time in the future. The transaction is "in kind", not in Rupees and cents. You get effectively paid for at the same rate you pay for your electricity, because you avoid purchasing from your electricity supplier.

You must use only a renewable source of energy to produce electricity. Therefore, power plants run on petrol, diesel, kerosene and gas are not allowed, and they would be too expensive any way. Those who have such oil-burning power plants, are free to use them for their own consumption, but cannot apply for "net" metering to "sell" the surplus to the grid.


Bank your surplus energy with LECO and CEB

LECO/CEB will require certain new protection equipment and a new meter to be fixed, for which there will be a one-time cost. After all, electricity distribution wires were designed to supply electricity to you, and not to let you send electricity on the same wires back to the supplier. However, this thinking has changed over time, and LECO (and CEB) are now providing a facility for you to bank your surplus energy with them, and take them back later on. There is no charge by LECO (or CEB) for banking your surplus energy, but would not want to risk the safety of their workmen in case you send the electricity back when their maintenance staff is working on the line.

The equipment you have to purchase and fix will not allow you to send power back on the line, when the supplier has switched-off the lines for maintenance.

Sri Lanka is among the first few developing countries to introduce "net" metering, and that too free of charge, except for the initial charge for a one-time charge for a new meter and protection equipment. Total flexibility is allowed to the customer to choose the type and size of his renewable energy facility, and the customer is free to switch on and off whenever he likes. LECO (and CEB) would always standby to provide your electricity supply, in case your renewable energy facility goes out of order or if you simply give-up using it. There will obviously be a loss of income to LECO and CEB, which they have obviously resolved to put up with, to support the cause of renewable energy development in Sri Lanka.

In 2007, Sri Lanka produced 40% of her electricity requirements of the grid, using renewable energy, which too places the country high on the world ranking. With the new large coal power plants being built to meet the growing demand at a lower cost, this share of renewable energy may drop to 25% within a decade from now. Sri Lanka’s national energy policy released in 2008 has declared that by 2015, the country would endeavor to achieve a 10% contribution to grid electricity from small non-conventional renewable energy sources. By end 2007, the country has achieved 3.5%, and the net metering facility would certainly help to further improve this renewable energy contribution.



An excerpt of an article by Dr. Tilak Siyambalapitiya, published in The Island 

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