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Renewable Energy Policies in Sri Lanka - the needs and potentials for additional international support Asoka Abeygunawardana Adviser to the Hon. Minister of Power and Energy- Sri Lanka Executive Director- Energy Forum

Renewable Energy Policies in Sri Lankapdf.wri.org/wri_fair_fit_workshop_presentation_sri_lanka_mpesl.pdf · Renewable Energy Policies in Sri Lanka - the needs and potentials for additional

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Renewable Energy Policies in Sri Lanka - the needs and potentials for additional

international support

Asoka AbeygunawardanaAdviser to the Hon. Minister of Power and Energy- Sri Lanka

Executive Director- Energy Forum

SRI LANKA

Sri Lanka – An island in the Indian OceanLower middle income country Land area (square km) - 65,610 Population - 20 m Total Households - 5.3 mOn grid Commercial entities - 400,000On grid Government Institutions - 134,000On grid Hotels - 546On grid Industries - 43,000Per capita energy consumption (toe ) - 0.478(lower middle income country average of 1.02 toe)Per capita CO2 emissions (tons/y) - 0.62 (World average – 4.29)

GOSL / Ministry

Consumers

Independent Power Producers

(oil & RE)CEB

Transmission

CEB Generation

CEB Dis 1

Regulator - PUCSL

LECOCEB Dis 3

CEB Dis 3

CEB Dis 4

SLSEA

Power Sector in Sri Lanka

Off grid

98 %<

95 – 98%

90 – 95%

85 – 90%

80 – 85%

70 – 80%

60 – 70%

50 – 60%

40 – 50%

40%>

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Electricity for everybody, everyday

‘100% electrification by the end of 2012

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Cumulative new Oil Cumulative new Hydro Cumulative Coal MW Oil

Coal - 4000 MW; 85% of the capacity by 2025

Business as usual Generation Expansion Plan of Sri Lanka

% generation 2010 2011 2012Renewables 52% 37% 33%Oil - 50% 52%Coal 48% 13% 15%

Renewable Energy policy in Sri Lanka

• Planning and Strategy Official targets for renewable energy

2010 - 40% renewables (large hydro)

2016 - 60% demand increase 2016 - 38% renewables (large hydro+ NCRE- 10%)

2020 – 100% demand increase Demand side management – 10%2020 - 43% renewables (large hydro+ NCRE- 20%)Statements of intendCarbon neutral growth by 2020 Start carbon reduction by 2030

Avoided Generation Cost - early 1990

Generated enthusiasm for mini-hydro power Lack of transparency in calculating the actual avoided costHidden subsidies given to fossil fuel

Technology Specific Financial Cost Reflective Tariff - (Flat and 3 -tier) - 2007

Generated enthusiasm for mini-hydro and wind power There was no way to meet the additional cost

Above 25 MW - should have government sharesBetween 10 MW to 25 MW - negotiated price - Private companies Less than 10 MW - First come first serve basis - Private companies

FiT in - Sri Lanka

-

100

200

300

400

500

600

700

800

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Small Renewables (GWh)

2010 - 6.5%

The state of play of renewable energy policy in Sri Lanka

• Generation-Based Incentives/Feed-in-Tariffs (FITs)

FIT and its basic features:

The tariffs and the Special Power Purchase Agreements for projects with a rated generating capacity up to 10 MW are:• first come first serve• standardized • non-negotiable• cost-based • sources - specific • technology-specific• either a three-tier tariff or a flat tariff• valid for a period of 20 years• extendable by mutual consent

Flat Tariff in 2011

Technology

All inclusive rate for years 1-20

(LKR/kWh) (USD Cts/kWh)

Mini-hydro 13.04 11.54

Mini-hydro - Local 13.32 11.79

Wind 19.43 17.19

Wind - Local 19.97 17.67

Biomass (Dendro) 20.70 18.32

Biomass (Agricultural & Industrial Waste) 14.53 12.86

Municipal Waste 22.02 19.49

Waste Heat Recovery 6.64 5.88

Other 20.70 18.32

Ex rate: USD1=LKR 113

FiT in Sri Lanka - Flat tariff All inclusive rate for years 1-20 (LKR/kWh)

-

5.00

10.00

15.00

20.00

25.00

2007 2008 2009 2010 2011

Mini-hydro

Wind

Biomass

Agricultural & Industrial Waste Municipal Waste

Waste Heat Recovery

Wave Energy

Biomass Mini Hydro Solar Wind All REPsNo MW No MW No MW No MW No MW

Commissioned 3 13 87 189 4 1 4 31 98 234

Under Construction 15 74 112 211 10 99 137 384 Valid Provisional Approval 7 81 37 41 1 10 46 142 Total committed at present 25 167 236 441 5 11 14 130 281 759 Wind Farm 1 100 1 100Solar Farm 1 100 1 100Total

Total – Committed at present 2000 GWh/y – 13% by 2016Total – with parks – 2430- 16% by 2016Geo Thermal - PA - 10 MW; Applied - 109 MWSea Wave - Applied 3 MW

Small renewable energy power plants

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Mini hydro

Wind

Biomass dendro

Coal 2y

Escalation due to inflation : fuel - 5.09%; O&M -7.64%Escalation due to scarcity of coal resources: 3%

Policy cost - Cost of Energy

Hydro Power Potential - 1960 MW @ 40% pf (1290 MW all ready tapped)

Dendro Power Potential - 900 MW @ 70% pf; BEASL estimate -3,000 MW

Wind Power Potential - 3000 MW @ 30% pf; NREL estimate 20,000+24,000 MW

Solar Power Potential - 4.5 to 6.0 kWh/m2/day @ 16% pf

Wave Power Potential - 200 MW @ 65% pf; NARA estimate-2000 MW)

OTEC Potential -Trincomalee Canyon is the one of the world best places

Geothermal Potential - 30 MW (GSMB estimate)

Estimated Renewable energy potential in Sri Lanka

Pump Storage Solution

Samanalawewa (Keriketi Oya) 1000 MWMaussakele (Adam's Peak Falls) 500 MWRandenigala (Halgran Oya) 500 MWKotmale (Maha Oya, Gurugal Oya, Kuda Oya) 900 MWUpper Kotmale (Dambagastalawa, Agra Oya) 600 MW

Total 3500 MW500 MW plant: capital - 360 to 500 million USD

- 730 – 1000 USD/kWDiscussions are currently under way.

Potential sites

Major Technical issue to be addressed- systems ability absorb fluctuations

International Support

• Generation and Transmission expansion planning (Technical & Capacity building)

• Concessionary financial support (Financial)• Subsidy reforms (Technical)• FIT for other renewable energy technologies such as Solar PV,

Concentrated Solar Thermal (Technical and capacity Building)• Study on Wave Power, Geothermal and Ocean Thermal Energy

Conversion (OTEC) (Technical & Capacity Building)• Biomass collection, storage and clearing houses (Financial)• Pump Storage (Financial & Technical)• Smart Grid for the Sri Lankan Power System (Financial, Technical

& Capacity Building)• Civil Society Strengthening (Capacity Building)

for achieving new renewable energy targets