The world economy suffered a massive shock in the year 2008 as a result of global oil prices increasing threefold. Therefore, not much imagination is needed to predict the magnitude of the shock when one day, world oil supplies finally runs dry.... it is in this background that we are seeking to develop our own resources.

- ‘Mahinda Chintana’: Vision for the Future

Following the defeat of the LTTE, a golden opportunity has dawned to harness the wealth from our resources, as never before envisaged. President Mahinda Rajapaksa’s vision is to make the country a regional energy hub. To achieve this target the Government plans to harness the country's own oil, gas and mineral sand resources which could be used to generate nuclear power and is expected to double Sri Lanka's national income in the next five years.

Mahinda Chintana: Vision for the Future, places much importance to energy security and energy conservation in the country. The government has, therefore, successfully commenced many projects related to power and energy around the country, such as construction of the Kerawalapitiya Combined Cycle Power Plant project, Upper Kotmale hydropower project, Norochcholai Coal Fired Power Plant project, and the construction of the Trincomalee Coal Power plant.

At present, it is estimated that 77% of Sri Lanka's households have electricity with grid connections whilst 3% are served by off-grid facilities. The annual increase in demand for electricity is around 7%-8%. Therefore, around 200MW needs to be added to the system annually.

Electricity generation in Sri Lanka depends heavily on crude oil. Thus, the power generation cost has increased. In order to overcome this situation, low cost electricity generating facilities, such as coal and hydro electric power plants are being constructed.

Kerawalapitiya Combined Cycle Power Plant project

This power plant now stands fully constructed, completed and full fledged. Commercial operations have commenced since 10th May 2010.

The power plant generated 487,428,512 units of electricity during its first stage. The plant after commencing combined cycle operation, has generated 455, 235,653 units so far.

Adding another 200 MW generating capacity to the national grid, the first stage of the Kerawalapitiya Power Plant was opened in December 2008 by President Mahinda Rajapaksa.

The construction of the second stage was also completed within the scheduled time period of 18 months from the completion of the first stage. On completion of the second stage the fully completed power plant was dedicated to the people by President Mahinda Rajapaksa on 25th February 2010.

The project was completed in two stages at a cost of Rs. 35 billion. The first stage covered site preparation, civil works including buildings, water intake system from nearby ocean, water desalination plant and, installation of 2 Gas Turbines of 100 MW.

The second stage comprised the installation of two Heat Recovery Steam Generators (HRSG) and Steam Turbine of 100 MW generating capacity and all associated electrical and mechanical balance of plant.

The 100 MW Steam Turbine of the second stage works on steam generated from the heat recovered from the two gas turbines of the first stage. Thus, no fuel needed for the second stage.

Upper Kotmale hydropower project

President Mahinda Rajapaksa on November 04 paid an inspection tour to the Upper Kothmale tunnel which is considered the longest tunnel in the country.

The construction work is done in five phases and nearly 94 per cent of the construction of the first phase has been completed while, 76 percent of the second phase, 79 percent of the third phase 57 percent of the fourth and 54 percent of the fifth phase are now completed.

Overall 74 per cent of the project is completed as at September 30, 2010. It is expected to be completed by December 2011.

This project was delayed due to various reasons under several governments until the present government took a firm decision to commence the project in 2006.

It is expected to add 409 GWh to the national grid annually and help meet the future electricity demand of the country. The Upper Kotmale dam will be located near Talawakele and an underground powerhouse at Niyagammodara. These will be linked by a tunnel. The project area covers around 540 square kms of the upstream catchment of the Kotmale Oya. The total estimated cost of the project is Rs. 38,219 million. The Sri Lankan Government provided Rs 5,931 million.

This project will save foreign exchange that is currently utilized for importing diesel for thermal power generation.

The Ceylon Electricity Board (CEB) spends approximately Rs. 16,000 million on importing diesel for power generation. A considerable portion of this expenditure can be saved as a result of the Upper Kotmale hydropower project. It is also expected to provide direct and indirect employment and income earning opportunities to many unemployed persons during its construction period.

Norochcholai Coal Fired Power Plant

Sri Lanka is expected to give a major boost to its power sector with the completion of the Norochcholai coal power project, of which 95 % is completed at present.

The first phase of its construction was completed in 2009 while the second phase of the project, aimed at generating over 600MW commenced with financial assistance from the Chinese Government. China provided US$ 891 million for the commencement of second phase and the Government allocated Rs. 11,000 million for the project.

300 MW is added to the national grid with the completion of the first stage and 600 MW will be added in the second stage. The project is expected to make a significant contribution towards meeting the country's electricity needs by 2011.

Trincomalee Coal Power Project

This project aims to construct a 500 MW power plant in Trincomalee in order to generate electricity at a low cost.

The cost of power generation from this plant is relatively low compared to other oil fired power plants. Therefore, benefits can be transferred to its consumers. Electricity generated from this power plant can also be utilized to meet the demands of the Industrial Sector.

The total cost of the plant is approximately US$ 500 million. The Memorandum of Agreement (MoA) between the Government/Ceylon Electricity Board (CEB) and NTPC Limited (formerly National Thermal Power Corporation) to form the joint venture Company has been signed on 29.12.2006.

Presently, the land acquisition process initiated by the Urban Development Authority (UDA) and AGA Muttur is in progress. In July 2010 the Government of India agreed to provide a US$ 200 million loan to finance the transmission line and the Jetty.

Survey on Sampoor New Habarana 220kV 90 Km line is complete while the survey on New Habarana- Veyangoda 220kV 146Km line is in progress. The initial Environmental Studies on New Habarana- Veyangoda line is in progress. Obtaining land for the New Habarana GSS from Forest Department is in progress and the purchase of paddy lands also for the Veyangoda GSS expansion is in progress.

Through these projects, the government expects to provide electricity to the entire nation without interruption, and especially to rural areas to uplift the living standards of the people.

These projects will no doubt speed up the development process as well so that all communities, irrespective of ethnicity, class, religion or region will reap its benefits.




 

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