The government
of Sri Lanka strives for a country that is self-sufficient in electricity by
2030. The target is to raise the country's power generation capacity from the
current 4,000 MW to 7,000 MW by 2025 with a substantial renewable energy
increase.
Sri Lanka has already achieved a 98 percent grid coverage, which is
relatively high according to South Asian standards. There are three primary sources of
electricity generated in Sri Lanka: thermal power (including coal and fuel
oil), hydropower, and other non-conventional renewable energy (solar power and
wind power). (Data Source: Ministry of Power and energy). The newly elected
government aims to expand the following areas in the power sector:
Expedite the exploration of natural gas identified in the three
zones of the geological survey, to ensure that the people of this country would
reap the benefits in the next three years.
The oil refinery located in Kolonnawa, which is 40 years old, will
be modernized. The oil storage tanks in Trincomalee will also be re-constructed
and developed to enable them to contribute to the economic progression of the
country.
According to the current plan, we will take action to add 230MW of
power to the national grid by installing the Broadland hydropower station by
2020, Uma Oya by 2021, Moragolla by 2023, Talapitigala and Seethwaka by 2024.
Immediate actions will be taken to convert the Kelanitissa plant to
a natural gas turbine plant, where similar two plants will establish in
Kerawalapitiya and Hambantota before 2023. As part of the
environmental-friendly policy, they will convert the fuel-powered plants
located around the Colombo area to natural gas turbine plants within the next
year.
They will develop a Smart Grid to ensure that all power plants
operate at maximum efficiency and utilization.
They will add 100MW of wind energy in Mannar by 2021. Additionally,
we expect to add 800MW of solar energy to the national grid by executing a wind
and solar power project with a public-private partnership in potential
locations around the country, including Mannar, Poonareyn and Monaragala.
Rooftop solar systems will be encouraged so that households and
small businesses would have access to low-cost energy, a possible feat in the
course of the next five years. The total cost of such investments would be made
available through bank loans with low/concessional interest rates. The
government will also introduce a new method to release excess power generation
to the national grid in improving solar energy utilization.
They will remove all impediments and incentivize the private sector
and entrepreneurs interested in setting up renewable energy projects, i.e.,
solar and wind, and to this end, the government will assist.
They will also introduce an efficient energy generation program
using industrial waste in each city.
They will introduce new policies and legislation to ensure the
efficient use of energy in the construction sector.
OSL Take: The
looming power crisis in Sri Lanka has resulted in the opening up of many
business/investment opportunities in the country’s power and energy sector. The
government of Sri Lanka is continuously exploring solutions to address the
rapidly increasing demand for electricity. The government is also focusing on
sustainable energy generation methods. Therefore, Sri Lanka’s power and energy
sector is a hotbed for business/investment opportunities.
VBS/AT/19122019/Z_TB1
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