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

Source : http://www.island.lk

Middle income earners to pay a third more for electricity

Middle-income earners using between 61 and 300 energy units will see their power bills shoot up by more than a third with the new tariffs, the Public Utilities Commission (PUCSL) says. Ceylon Electricity Board (CEB) Chairman W.P.Ganegala defended the new price structure, saying the increase over all sectors amounted to 20 per cent and that the Board was compelled to increase rates in order to provide round-the-clock supplies.

PUCSL statistics show that if a consumer exceeds 60 units of electricity then the charges will be doubled: the bill for 60 units will be Rs.371 while 61 units would be charged at Rs.763.20 a month. This will squarely hit middle income earners but also affect low income earners.

Consumer rights group say prices needed to be increased to cover the losses sustained by the CEB over the last decade due to high dependency on thermal energy generation, mainly from fuel combustion and the low dependency on hydro and other energy resources due to changes in the weather.

Mr Ganegala said the power failures were caused due to the adverse weather conditions. CEB Joint Trade Alliance spokesman Ananda Nimalaratne said, however, that with the current inclement weather conditions, the CEB will be able to use hydro energy for 35 per cent of its power requirement, up from an estimated 20 – 23 per cent for this year. This would allow the CEB to recover some of its losses.

Mr Nimalaratne said rains had filled almost every dam. Campaign for Free and Fair Elections Executive Director Keerthi Tennakoon said 88 per cent of the CEB’s estimated budget would be drawn from the increased prices charged to domestic users.

Public and Private Trade Union Confederation co-convenor Saman Rathnapriya pointed out that the Ceylon Petroleum Corporation could allow the CEB a concession of Rs.20 for a litre of a diesel as the price of crude oil had decreased from $US105 to $US85 a barrel, and such a move would allow the CEB to cover its losses.

A CEB engineer speaking on condition of anonymity said one reason for the CEB’s financial losses was that, to meet the country’s energy needs, previous governments had signed agreements to buy energy from private power plants at a high rate and had sold the same energy to these plants at a cheaper rate.

Source : http://www.sundaytimes.lk/

The Electricity Tariff Hike - A great salutary step forward

During the last decade Japan, a country with no oil or hydro-power strongly subsidized  roof-top solar panels for public and corporate  buildings and homes. However, with the new tariffs in Sri Lanka, no such subsidies are needed. It is now just good business to install solar panels on buildings for air conditioning and other domestic needs, while the main power-grid is the steady source.

The government’s decision to raise the electricity price to realistic values, and its decision on May Day to bring down the price for those consuming less than 60 units may not have been policy decisions that were arrived at in a rational manner. However, these happen to be exactly the right decisions in the context of Sri Lanka’s development trajectory.

At a talk I gave at the presidential secretariat in July 2009, (and also to a number of learned societies in Sri Lanka) I pointed out that the cost of electricity was too low in terms of the mode of utilization of power in Sri Lanka. More details can be found in that talk which is available on the internet (dh-web.org/place.names/posts/dev-tech.ppt/). Many of the new installations  are hotels, airports, offices etc., that use large amounts of electricity for air-conditioning and comfort, rather than for manufacturing and production.

 Electricity is one of the most efficient forms of energy (compared to heat energy whose efficiency is controlled by Carnot’s theorem, as discussed in simple language, e.g.,  in my recent book - A physicist’s view of Matter and Mind). Electricity should be reserved for high-end purposes, and other energy sources should be used for low-end non-productive purposes.

 Why is the rise in electricity tariffs such a blessing in disguise? Will it not slow down our industrial sector? The blessing comings from the fact that the new tariffs make solar energy  (and new types of jobs), an attractive competitor among the available energy sources. The current usage pattern of 0.3-0.4 kWh per household will increase an order of magnitude within a decade, and future energy bills would be quite horrendous.

Solar energy becomes even more sensible

During the last decade Japan, a country with no oil or hydro-power strongly subsidized  roof-top solar panels for public and corporate  buildings and homes. However, with the new tariffs in Sri Lanka, no such subsidies are needed. It is now just good business to install solar panels on buildings for air conditioning and other domestic needs, while the main power-grid is the steady source. Solar energy becomes even more sensible when we note that in India today, solar electricity has fallen to about 8-9 Indian  rupees per kilowatt-hour compared with 18-20 rupees for diesel-power. This is not due to improvements in the efficiency of ordinary solar panels (15 to 20 per cent efficiency). The inefficiency is outweighed by their new low price.

Luxury hotels think nothing of installing expensive marble, Jacuzzis and many high-end items in their construction. However, most architects and urban planners, unaware of solar technology simply dismiss it out of hand as `too expensive’. Similarly, given the equipment costs that go into building an airport, covering its roof with solar panels is in fact a negligible budget increment. Given today’s energy tariffs, and anticipating future tariffs, not installing solar panels is stupid. Unlike diesel or coal-power installations, solar panels need no further fuel as the fuel is delivered by the sun’s rays. The maintenance is much less costly and produce no pollution compared to traditional power generation,  as we can see from the horror stories coming from the Lakvijaya powerstation in Horagolla (Horagolla is the traditional name of Norochchollai - see http://dh-web.org/place.names/).

Another technological development that cuts the cost of lighting by a factor of 10 is the use of light-emitting diodes (LEDs) for ceiling illumination panels. The cost of LEDs has gone down, while their efficiency has increased substantially.

Unfortunately, in Sri Lanka, instead of doing the obvious technological solution to a technological problem, we convert it to a political problem and quote Marx or Friedman, hold meetings or go on demonstrations. So at last, the force of circumstances have forced our policy makers to do what should have been done many years ago. The turn of events is like the removal of rice subsidy by the UNP government, and will have similar benefits.

It is now up to the engineers, architects and  construction managers in the private and public sectors to include solar panels and LEDs as integral parts of their design practice. The garment manufacturing industry can become energy self-sufficient with such installations. A private home designed with solar panels on the roof, and a heat pump which uses the cool  underground water table to cool the house can easily sell energy to the main grid. Everyone cannot afford the additions to the construction bill, but here the banks can give installation loans, to be paid up from future electricity savings.

So let us have a round of applause to high electricity tariffs for grid-based electricity. Keep them up and UP.

[The authors is a researcher in nano-technology, quantum theory and foundations of physics.]

by Chandre Dharmawardana in Canada
Source : http://www.island.lk/