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MINI HYDRO POWER DEVLOPMENT IN SRI LANKA - INITIATIVES Eng. P.L.G. KARIYAWASAM Deputy General Manager (Energy Marketing) CEYLON ELECTRICITY BOARD Slide 2 Content 4 Introduction 4 Whether Pattern & Geography 4 Background to Grid Interconnection 4 Grid Interconnection 4 Small Power Purchase Agreement 4 Features of SPPA 4 Technical Consideration Slide 3 Slide 4 Important Data (2011) v Population - 20.6 million v Area- 65610 sq km v Elec. Cons.- 480 kWh/person v Ene. Cons. - 0.43 TOE /person v Annual Rain Fall - 1500 6000 mm v Humidity - 70% (Day), 90% (Night) v Avg. Temp- 30 o C Slide 5 Introduction 4 CEYLON ELECTRICITY BOARD IS THE SINGLE BUYER OF ELECTRICITY 4 POWER SECTOR REGULATOR INTRODUCED IN YEAR 2009 4 SINCE EARLY 1990S PRIVATE SECTOR HAS BEEN ALLOWED TO BUILT, OWN AND OPERATE SMALL HYDRO POWER GENERATION. 4 ALL PRIVATE POWER MUST BE SOLD TO THE CEB GRID. 4 POWER PLANTS OVER 10 MW SIGN INDIVIDUAL PPAs. 4 RENEWABLE ENERGY BASED POWER PLANTS UP TO 10 MW SIGN A STANDARD PPA VALID FOR 15-20 YEARS. Slide 6 Electric Power Generation Capacity - 2011 Installed Capacity: Hydro Power - CEB 1207 MW - Private 548 MW Thermal - CEB 848 MW - Private 842 MW Wind - CEB 3 MW - Private 47 MW Maximum Demand Day 1626.6 MW on 20.05.2011 - Night 2163.1 MW National Electrification Level 91 % Share of Electricity to Total Energy 9.4% Slide 7 Power & Energy - Demand Installed Capacity in MWEnergy Generation in GWh 20042006200820102004200620082010 Hydro PowerCEB1207 2755429037004988 Private74109150175206346435646 ThermalCEB618548 2507166920831384 Private4555677378422064308236803600 Wind CEB Private 3030 3030 3030 3 12 2.7 0 2o2o 3030 3 83 Gross Generation 9389990110714 Maximum DemandDay1104.61312.41402.7 Night1563.41892.51922.2 National Electrification Level73.40%78.10%83% Source - CEB Statistical Digest Slide 8 Whether Pattern & Geography Monsoons in Sri Lanka - North East (NE) Monsoon - December February - 1 st Inter Monsoon - March April - South West (SW) Monsoon - May September - 2 nd Inter Monsoon - October - November Slide 9 History of MHP 4 Utilization of micro hydro energy in the plantation industry at the beginning of 20 th century 4 Mostly provided mechanical shaft power for the industrial process machinery. 4 Around 500 such plants in early 20 th Century 4 Around 50 such plants are in operation in 1990s. Slide 10 Background to Grid Interconnection of Small Hydro Power 4 Official Committee was appointed in 1992 to study Sri Lanka's power needs for the period 1991-2005. 4 Recommended private sector participation in MHP-development 4 Appointment of Consultants to study Technical and legal requirements Power purchase policy Economic and financial analysis. Rehabilitation and modernization strategy. Slide 11 Background to Grid Interconnection 4 The final study report of the consultants was presented in November 1993. 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 Slide 12 Background to Grid Interconnection. 4 First Estate MHP Plant (60 kW) was connected to the GRID in 1994 4 The first new Grid Connected BOO SHP was commissioned in 1995. Slide 13 Initial Small Power Purchase Agreement Developed with assistance of the World Bank Standardized Terms Published Tariff based on CEBs Avoided Costs Applicable for; 4 Capacity : Less than 10 MW 4 Energy produced from : Renewable energy sources Waste Co-generation Slide 14 Features of Initial Small Power Procurement Program of Ceylon Electricity Board 4 Term of the Contract : Negotiable 4 Transmission Interconnection : paid for by the developer 4 Interconnection Standard : BEA Engineering Recommendation G 59.1 and CEB Guidelines 4 Metering equipment : provided by CEB 4 Credit for energy delivery during the Dry Season 4 Power Purchase Guarantee by CEB: 100 % 4 Tariff : based on CEBs Avoided Costs each year 4 Tariff : Payable in Sri Lanka Rupees, but calculated in US Dollars, using the prevailing exchange rates 4 Tariff stability : Assured by a 90% Floor price Slide 15 Power Sector Policy 4 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 4 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) Slide 16 Government Energy Policy Guidelines - Published in May 2008 4 High priority to energy sector 4 Three important sections Energy policy Elements Implementing Strategies Specific Targets and Milestones and Institution Responsibilities Slide 17 17 Government Energy Policy Guidelines 4 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) Slide 18 Technical Consideration CEB Guide for Grid Interconnection of Embedded Generation Dec. 2000 4 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. 4 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. Slide 19 19 Guide for Practical Implementation of Grid-Interconnection Specification 4 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 Slide 20 Key Factors for the SHP Development 4 Availability of profitable sites. 4 Availability of loan funding. 4 Availability of Technical Expertise 4 Reliable data to carry out feasibility studies available. 4 Prior history of SHP development in Sri Lanka. 4 The standard PPA and Technical guidelines. 4 BOI concessions Slide 21 Data :- Statistical Digest - CEB Slide 22 22 Village Hydro Power Plants 4 More than 150 plants are in operation 4 Capacity 500 W 50 kW 4 Total capacity 1652 kW 4 Serving more than 6000 households Slide 23 23 Off-Grid Renewable Energy Project Development Training 4 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. Slide 24 Low head hydropower projects - Turbine Slide 25 Slide 26 KEY FACTORS HELPING THE DEVELOPMENT OF THE SHP SECTOR 4 THE STANDARD PPA. 4 AVAILABILITY OF LOAN FUNDING. 4 AVAILABILITY OF PROFITABLE SITES. 4 RELIABLE DATA TO CARRY OUT FEASIBILITY STUDIES AVAILABLE. 4 PRIOR HISTORY OF SHP DEVELOPMENT IN SRI LANKA. 4 PLANT AND MACHINERY FREE OF DUTY. 4 INCOME TAX CONCESSIONS. 4 DEMONSTRATION PROJECT SUBSIDISED BY NGO. 4 MANY OF THESE FACTORS APPLICABLE TO OTHER FORMS OF RET BASED POWER. 4 (Dr Romesh Bandaranayake, CEO, ECO Power (Pvt.) Ltd.), 2000 Slide 27 Thank you