NEED FOR LONG-TERM TARIFFS

A news item headlined ‘Power developers highlight need for long-term tariffs to draw investments’ -- appeared in the Mirror Business Page of August 27 -- needs to be commented on. Quite correctly with no ambiguity, Dr. P. Ramanujan, Chairman/ceo of Panasian Power PLC has said investors would be reluctant to invest in renewable sources of energy without a long-term view of the tariff. He also stresses, seeing the mismanagement of this vital sector, that there should not be ad-hoc changes.the tug-of-war between the CEB and the PUCSL seems to be the cause for this instability and resorting to ad-hoc changes in the Least Cost, Long-term Generation Plan of the CEB. This may be the reason why the CEB is yet insisting the inclusion of a coal plant in its Long-term Generation Plan. If this deadlock continues, it is imperative that this country will have to face a severe power cut as experienced in 2004 or worse, which was solely due to lack of political will and national interest. One wonders how the PUCSL could override a generation plan prepared by expert engineers with years of experience in this field and consultants of the CEB taking into consideration all aspects -- global requirements, government policy, consumer and its own establishment. Although the government’s ambitious plan to totally rely on renewable sources of energy by 2030, it appears to be a pipe-dream considering the lethargic, nonchalant callous attitude in expediting solar, wind energy plans by unduly delaying awards to private sector/government partnership and also award of the tender to set up an LNG plant which is under litigation. Under this dismal picture, there appears to be a justification in the CEB insisting on setting up a coal plant. This is not contravening the Paris Accord as Sri Lanka has clearly stated in her submission that “Sri Lanka reserves the right to revise its intended national contributions and targets at any point of time and consider the INDC to be a living document that should be integrated with changed/ modified national development goals and targets.”

The government, the Power and Energy Ministry and the CEB should take serious notice of the warning given by Dr. P. Ramanujan and act promptly to clear all obstacles to expedite renewable source of energy projects, encouraging the private sector with a longterm fixed tariff. Dr. Ramanujan should also see and cooperate with the government to set up a reasonable tariff as the private sector is bent on recovering the investment in double quick time. The difference between the private sector supplier and the government is that the private sector does not consider the supply as a service for the wellbeing of the people but only financial gains. G.A.D. SIRIMAL, BORALESGAMUWA