Sri Lanka 400kw Solar Project with Japanese Government

20th January 2010, www.thebottomline.lk

The Minister of Power and Energy John Seneviratne, is to sign the Memorandum of Understanding with the Japanese government for the construction of a 400 kW grid connected solar power generation plant at Buruthankanda, Hambantota, under a grant from Japan.

The Government of Japan has provided a grant of Japanese Yen 860 million (approximately Rs. 1,075 mn) to the project which will be implemented by the Sri Lanka Sustainable Energy Authority.

To address the issues on climate change and to access the clean energy, the government hopes to reduce dependence on fossil fuels for electricity generation in Sri Lanka. Development of renewable energy sources is now at a very important stage, with only hydropower being the only significant renewable energy sources for the electricity generation.

A massive 55 to 60 percent of the power supply was generated by diesel, while the share of hydroelectricity averaged between 40 and 45.

Electricity costs in Sri Lanka are among the highest in the world with all users paying high cost for industrial, commercial and domestic uses and driving away the investors. Average electricity tariff rates to industrial sector is from Rs 7.00 to 7.50 in Sri lanka; Indonesia 1.52 – 3.90; Malaysia 2.63 – 10.52; Singapore 4.32 – 6.78; Thailand 2.89 – 7.01, according to the Central Bank’s Annual Report of 2004.

The installed capacity in the country was 2,544 MW (Hydro and thermal combined) in 2006.

Demand for electricity in Sri Lanka is said to increase by about 10 percent annually.
Presently the daily electricity requirement of the country stood at 1.9 GW out of which one third was contributed by hydropower projects and the rest by thermal power plants.