MINI HYDRO POWER DEVLOPMENT IN SRI LANKA - INITIATIVES Eng. P.L.G. KARIYAWASAM Deputy General Manager (Energy Marketing) CEYLON ELECTRICITY BOARD

Content Introduction Whether Pattern & Geography Background to Grid Interconnection Grid Interconnection Small Power Purchase Agreement Features of SPPA Technical Consideration

Important Data (2011) Population - 20.6 million Area - 65610 sq km Elec. Cons. - 480 kWh/person Ene. Cons. - 0.43 TOE /person Annual Rain Fall - 1500 – 6000 mm Humidity - 70% (Day), 90% (Night) Avg. Temp - 30 oC

Introduction Ceylon Electricity Board IS THE Single Buyer of Electricity POWER SECTOR REGULATOR introduced in year 2009 SINCE EARLY 1990s PRIVATE SECTOR HAS BEEN ALLOWED to Built, Own and Operate Small Hydro Power GENERATION. ALL PRIVATE POWER MUST BE SOLD TO THE CEB GRID. POWER PLANTS OVER 10 MW SIGN INDIVIDUAL PPAs. Renewable Energy BASED POWER PLANTS UP TO 10 MW SIGN A STANDARD PPA VALID FOR 15-20 YEARS.

Electric Power Generation Capacity - 2011 Installed Capacity: Hydro Power - CEB 1207 MW - Private 548 MW Thermal - CEB 848 MW - Private 842 MW Wind - CEB 3 MW - Private 47 MW Maximum Demand – Day 1626.6 MW on 20.05.2011 - Night 2163.1 MW National Electrification Level – 91 % Share of Electricity to Total Energy – 9.4%

Installed Capacity in MW Energy Generation in GWh Power & Energy - Demand   Installed Capacity in MW Energy Generation in GWh 2004 2006 2008 2010 Hydro Power CEB 1207 2755 4290 3700 4988 Private 74 109 150 175 206 346 435 646 Thermal 618 548 2507 1669 2083 1384 455 567 737 842 2064 3082 3680 3600 Wind 3 12 2.7 2 o 83 Gross Generation 9389 9901 10714 Maximum Demand Day 1104.6 1312.4 1402.7 Night 1563.4 1892.5 1922.2 National Electrification Level 73.40% 78.10% 83% Source - CEB Statistical Digest

Whether Pattern & Geography Monsoons in Sri Lanka - North East (NE) Monsoon - December – February -  1st Inter Monsoon - March – April - South West (SW) Monsoon - May – September -  2nd Inter Monsoon - October - November

History of MHP Utilization of micro hydro energy in the plantation industry at the beginning of 20th century Mostly provided mechanical shaft power for the industrial process machinery. Around 500 such plants in early 20th Century Around 50 such plants are in operation in 1990’s.

Background to Grid Interconnection of Small Hydro Power Official Committee was appointed in 1992 to study Sri Lanka's power needs for the period 1991-2005. Recommended private sector participation in MHP-development Appointment of Consultants to study   Technical and legal requirements Power purchase policy Economic and financial analysis. Rehabilitation and modernization strategy.

Background to Grid Interconnection… The final study report of the consultants was presented in November 1993. The Consultants main recommendations were, Establishment of technical standards for grid connection of MHP plants, and Formulation of a contract document containing all commercial and legal aspects concerning the relationship between CEB and the MHP plant owners

Background to Grid Interconnection…. First Estate MHP Plant (60 kW) was connected to the GRID in 1994 The first new Grid Connected BOO SHP was commissioned in 1995.

Initial Small Power Purchase Agreement Developed with assistance of the World Bank Standardized Terms Published Tariff based on CEB’s Avoided Costs Applicable for; Capacity : Less than 10 MW Energy produced from : Renewable energy sources Waste Co-generation

Features of Initial Small Power Procurement Program of Ceylon Electricity Board Term of the Contract : Negotiable Transmission Interconnection : paid for by the developer Interconnection Standard : BEA Engineering Recommendation G 59.1 and CEB Guidelines Metering equipment : provided by CEB Credit for energy delivery during the Dry Season Power Purchase Guarantee by CEB: 100 % Tariff : based on CEB’s Avoided Costs each year Tariff : Payable in Sri Lanka Rupees, but calculated in US Dollars, using the prevailing exchange rates Tariff stability : Assured by a 90% Floor price

Power Sector Policy Power Sector Policy Directions 1997 Hydro power generation potential of the country will be developed to its full potential Private sector financing will be utilized for power generation from small hydro power plants Private Sector will be encouraged to develop non-traditional energy including Mini and Micro Hydro, Wind, and Solar Power up to a ceiling of 10% of the island wide demand for electricity. Dendro-Power development will also encouraged. ( (Page 10 of Proposed Power Sector Policy Guidelines November 2002)

Government Energy Policy Guidelines - Published in May 2008 High priority to energy sector Three important sections Energy policy Elements Implementing Strategies Specific Targets and Milestones and Institution Responsibilities

Government Energy Policy Guidelines Developers will be encouraged to develop non-traditional energy including Mini and Micro Hydro, Wind, and Solar Power up to a ceiling of 10% of the island wide demand for electricity. Dendro-Power development will also encouraged. – Target 2015 (Clause 4.4 of National Energy Policy May 2008)

Technical Consideration – CEB Guide for Grid Interconnection of Embedded Generation – Dec. 2000 This Guide is based on the requirements of Ceylon Electricity Board (CEB), Sri Lanka, and the conditions and constraints under which the CEB system operates. The primary intention of this Guide is to establish procedures and equipment to protect CEB personnel, equipment and the system from any harmful effects arising out of the interconnection and operation of Embedded Generators. The total capacity of embedded generation is expected to be less than 6% of the peak load, and about 15% of the minimum load. Otherwise, review the guide accordingly.

Guide for Practical Implementation of Grid-Interconnection Specification Prepared a detailed design guidelines to assist project developers (mini hydro and other renewable power facilities upto 10 MW) in selecting and designing interconnections and electrical and Electro-mechanical equipment/systems to ensure that the the project meets the technical integration with CEB grid system

Key Factors for the SHP Development Availability of profitable sites. Availability of loan funding. Availability of Technical Expertise Reliable data to carry out feasibility studies available. Prior history of SHP development in Sri Lanka. The standard PPA and Technical guidelines. BOI concessions

Data :- Statistical Digest - CEB

Village Hydro Power Plants More than 150 plants are in operation Capacity 500 W – 50 kW Total capacity 1652 kW Serving more than 6000 households

Off-Grid Renewable Energy Project Development Training Training in all aspects (financing of renewable energy projects, including off-grid systems, analyses of technical, financial and institutional capabilities for preparation of project proposals) of off-grid subproject preparation to relevant CEB staff, the private sector and village co-operatives.

Low head hydropower projects - Turbine

Low head hydropower projects - Turbine

KEY FACTORS HELPING THE DEVELOPMENT OF THE SHP SECTOR THE STANDARD PPA. AVAILABILITY OF LOAN FUNDING. AVAILABILITY OF PROFITABLE SITES. RELIABLE DATA TO CARRY OUT FEASIBILITY STUDIES AVAILABLE. PRIOR HISTORY OF SHP DEVELOPMENT IN SRI LANKA. PLANT AND MACHINERY FREE OF DUTY. INCOME TAX CONCESSIONS. DEMONSTRATION PROJECT SUBSIDISED BY NGO. MANY OF THESE FACTORS APPLICABLE TO OTHER FORMS OF RET BASED POWER. (Dr Romesh Bandaranayake, CEO, ECO Power (Pvt.) Ltd.), 2000

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