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Damitha Kumarasinghe Director General

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Presentation on theme: "Damitha Kumarasinghe Director General"— Presentation transcript:

1 Policy and Regulatory Framework and Enhancement of Electricity Trading in South Asia
Damitha Kumarasinghe Director General Public Utilities Commission of Sri Lanka 02 March 2016 – Goa, India

2 Sri Lanka Electricity Industry Structure
LECO IPP Consumers GOSL / Cabinet of Ministers Transmission CEB Generation Minister of Power and Energy Minister of Finance and Planning Public Utilities Commission of Sri Lanka (Regulator) D1 D2 D3 D4 Corporate

3 Sri Lanka Power System Generation Capacity (3,602 MW)
Large Hydro 1,361 MW CEB Thermal 1,103 MW IPP Thermal MW NCRE MW (271 MW mini-hydro, 78 MW Wind) Peak Demand – 2,100 MW (excluding NCRE) Sales – 10,500 GWh Consumers – 5.5 Million CEB Transmission System 220kV and 132 kV CEB does 85% of distribution, rest by LECO

4 Legal Position GENERATION License required and Government shareholding required for plants above 25MW Generator requirement need to be identified in LT plan Competitive Bidding TRANSMISSION License required; Ceylon Electricity Board (CEB) by the Act. DISTRIBUTION License Required; four Licenses to CEB and one for its subsidiary- LECO Private companies can get License - require >50% Gvt ownership TRADING A function of Transmission Licensee – single buyer

5 Market Risk No (minimum) risk Single buyer model
Government Guaranteed contracts Minimum Dispatch Requirements Fuel supply risk with Government/ CEB

6 Operator Viability and Rights
Legally ensured Required to allow recovery of all reasonable costs of a Licensee Minimum fixed return on Investment as per PPA Stringent procedure to issue enforcement orders Revocation of License is difficult- Provide Certainty Minister Concurrence Public Notice

7 Areas to Improve in Relation to Cross Border Trade
Open access would attract investment- but require amendments to Law Handling Trading and related dispatch in the event of International Trading Private parties that intend to invest in Generation (>25 MW) will have to have a Government share, this might not be attractive

8 India - Sri Lanka Undersea HVDC Transmission Link
Pre-feasibility done 2002 and 2006 Originally planned for 500 MW upgradable to 1,000MW Agreement signed to conduct a detailed feasibility – collaboration with Power Grid India and Ceylon Electricity Board

9 Madurai- Anuradhapura selected
285 km 50km undersea ±400kV USD 800 Mn

10 Power trading through India- Sri Lanka Link
Opportunity power deficits at various time intervals Large scale Transmission network developments in India Very attractive peak prices observed in the Indian Power Exchange Potential savings by spinning reserve reduction on both sides Few large Coal Power plants being built in the country- base load may not be sufficient One 250 MW x 2 coal plant proposed in the East coast in collaboration with NTPC, India Large Renewable Energy potential in Northern part of the country All depends on Indian/ Sri Lankan policy

11 Sri Lanka Electricity Law and Regional Interconnection
Open Access is not allowed All trading has to go through CEB- Transmission Licensee (Single Buyer) Any Generation procurement to be included in Least Cost Long Term Generation Expansion Plan- Ensure least cost criteria

12 Thank You


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