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