Barriers to Greenhouse Gas Mitigation Options in Developing Economies like Sri Lanka and Strategies to Overcome them Professor Priyantha D.C. Wijayatunga Public Utilities Commission of Sri Lanka & University of Moratuwa

Sri Lanka Power Sector Installed Capacity MW Large Hydro MW Thermal - 909MW (oil fired) Wind - 3 MW Small-hydro -74MW Biomass fired-1MW Off-grid Systems (2003)- 10 GWh small-hydro-4MW (160 systems) Solar PV-2.2MW (53,000 SHS) Wind25 systems Maximum Demand MW Total Generation GWh Annually Demand grows at 8-10% Doubles in Every 10 years

Generation Mix

Cleaner Technologies Mini/Micro-hydropower Wind Biomass Fired IGCC – Coal LNG

Identification of barriers Policy makers Developers Researchers/Academic community Financiers Environment regulators Representatives of environment protection advocacy groups

Main Barriers Identified Wind High initial cost Lack of financing instruments Seasonal variations in wind speeds Lack of wind measurements High overall unit cost of energy Dendro Lack of feed stock assurance Unclear government policy Insufficient knowledge about energy plantations Lack of awareness about the technology Lack of financing instruments

LNG Uncertainty about fuel price stability High initial cost Lack of a clear policy Insufficient demand for electricity High fuel cost IGCC High initial cost Negative public opinion about coal Dependency on imported fuel Lack of clear policy Not a proven technology

Criteria to Rank Cost to Remove the barrier Effort required to create an awareness Political/ Bureaucratic effort required to overcome the barrier

Stakeholder Groups & Weight Policy Makers 0.25 Energy/ Env. Experts 0.25 Utility 0.25 Developers/ Financiers 0.15 Users 0.10

Survey Personal visits Used a questionnaire filled by the stakeholder Used Analytic Hierarchy Process to analyze the responses

Hierarchy Ranking of Barriers Policy Makers Energy / Env. Experts UtilityDevelopers / Financiers Cost to Remove the Barrier Effort to Create Awareness Level of Political Effort Barrier 1 Barrier 2 Barrier 3 Barrier 4 Barrier 5 Users

Ranking Wind High overall unit cost of energy Seasonal variations in wind speeds Lack of financing instruments Biomass Fired Thermal Lack of feed stock assurance Lack of financing instruments Lack of awareness about the technology

LNG Uncertainty about fuel price stability High initial cost Insufficient demand for electricity IGCC - Coal Not a technology widely used Lack of clear policy Dependency on imported fuel

Strategies Wind Existing 3MW pilot project to demonstrate the technology Calling for expressions of interest – 20MW installation Wind mapping under UNDP and USAID project Proposed Designing production incentives Geographical diversification of plants to iron out seasonal variations Wind diesel systems Capacity building in Commercial banks on the technology

Biomass fired thermal Existing Developed under SPPA 1MW pilot project Research on energy plantations Proposed Detailed research to identify specific sites and potential Designing production incentives Building awareness among the farming community on energy plantations Streamline wood collection mechanisms

LNG & IGCC Existing Least economic cost expansion planning methodology Cleaner aspects of these technologies are not recognised Proposed Incorporate environmental cost in the planning process Awareness building on the technology and import dependency

Thank You Acknowledged WJLS Fernando, Prof Ram M Shrestha Prof Rahula Attalage, Kanchana Siriwardena Sri Lanka Energy Managers Association Asian Institute of Technology, Thailand University of Moratuwa, Sri Lanka Swedish International Development Cooperation Agency