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

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

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

5. 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 YEARS.

6. Electric Power Generation Capacity - 2011
Installed Capacity:
Hydro Power - CEB MW
- Private MW
Thermal CEB MW
- Private MW
Wind - CEB MW
- Private MW
Maximum Demand – Day MW on
- Night MW
National Electrification Level – 91 %
Share of Electricity to Total Energy – 9.4%

7. 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

8. 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

9. 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.

10. Background to Grid Interconnection of Small Hydro Power
Official Committee was appointed in 1992 to study Sri Lanka's power needs for the period
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.

11. Background to Grid Interconnection…
The final study report of the consultants was presented in November 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

12. 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.

13. 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

14. 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

15. 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)

16. 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

17. 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)

18. 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.

19. 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

20. 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

21. Data :- Statistical Digest - CEB

22. 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

23. 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.

24. Low head hydropower projects - Turbine

25. Low head hydropower projects - Turbine

26. 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

27. Thank you