Govt. to in­tro­duce ‘Mixed Gen­er­a­tion Plan’

To ab­sorb rapidly fluc­tu­at­ing Fuel Prices

Daily Mirror (Sri Lanka) - - NEWS - BY SANDUN A JAYASEKERA

While re­it­er­at­ing that the gov­ern­ment had no in­ten­tion to in­crease power tar­iff at least for the rest of 2018, Power and Re­new­able En­ergy Min­is­ter Ran­jith Siyam­bal­api­tiya said the Min­istry would in­tro­duce ‘Mixed Gen­er­a­tion Plan’ (MGP) to ab­sorb the neg­a­tive im­pacts in the do­mes­tic mar­ket from the rapidly fluc­tu­at­ing fuel prices in the global mar­ket.

Min­is­ter Siyam­bal­api­tiya stressed that there was no power cri­sis in Sri Lanka at the mo­ment and the Cey­lon Elec­tric­ity Board (CEB) was well equipped to pro­vide un­in­ter­rupted power round the clock, round the year to the en­tire coun­try. “The prob­lem fac­ing the CEB is the ever-in­creas­ing fuel prices in the global mar­ket. The cur­rent power tar­iffs were de­cided in April, 2013 when the price of a bar­rel of crude oil stood at US$ 40. To­day it has been in­creased to US$ 71, a bar­rel. Re­fined petrol is US$ 78 a bar­rel and diesel is US$ 82 a bar­rel. A bar­rel of re­fined Kerosene costs US$ 85. As a re­sult, the CEB in­curs nearly Rs. 20 bil­lion ever month,” Min­is­ter Siyam­bal­api­tiya stressed.

He said the gov­ern­ment did not in­tend to in­crease power tar­iff de­spite the huge losses in­curred by the CEB. In­stead the Power and Re­new­able En­ergy Min­istry had launched a mas­sive na­tional pro­gramme to de­velop al­ter­na­tive or re­new­able en­ergy sources thereby re­duce the de­pen­dency on costly ther­mal power that

The cur­rent power tar­iffs were de­cided in April, 2013 when the price of a bar­rel of crude oil stood at US$ 40, to­day it is US$ 71, a bar­rel. Re­fined petrol is US$ 78 a bar­rel and diesel is US$ 82. Re­fined Kerosene costs US$ 85. As a re­sult, the CEB in­curs nearly Rs. 20 bil­lion ever month

needs fos­sil fuel as its power gen­er­a­tion source.

“If we get enough wa­ter round the year en­abling to pro­duce at least 60% of elec­tric­ity needed for the coun­try from hy­dro power, we would be in a very ad­van­ta­geous po­si­tion. But the on­go­ing draught run­ning con­tin­u­ously for the last three years, the hy­dro power gen­er­a­tion has come down to less that 20% of the to­tal power gen­er­a­tion. As a so­lu­tion to this draw­back we have launched a project to gen­er­ate power us­ing re­new­able en­ergy sources such as so­lar power, wind power, Geother­mal Heat and Ocean Power Tech­nol­ogy which are rel­a­tively low cost and en­vi­ron­ment friendly in com­par­i­son to costly ther­mal power gen­er­a­tion. The aim is to re­duce de­pen­dency on ther­mal power and thereby ab­sorb the losses to CEB from sour­ing fuel prices in the in­ter­na­tional mar­ket,” Min­is­ter Siyam­bal­api­tiya added.

The CEB ex­pects not to re­vise power tar­iff for the mo­ment with the con­fi­dence that MGP would be a suc­cess, he em­pha­sized.

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