A New Company to Revive Energy Projects and to Promote the Use of more Renewable Energy Sources

04th January 2012, www.island.lk, By Ifham Nizam

To revive ailing power projects and to further strengthen the functions of the Sustainable Energy Authority of Sri Lanka (SEASL), particularly to promote the use of more renewable energy sources, a new entity, Sri Lanka Energy (Pvt) Ltd, was inaugurated yesterday by Power and Energy Minister Patali Champika Ranawaka.

Sri Lanka Energy (Pvt) Ltd, a subsidiary of the Ceylon Electricity Board is housed at the BMICH in Colombo.

A spokesman of the SEASL told The Island Financial Review, when queried as to why another entity was created when the SEASL is supposed to carry out these functions and felicitate private investments in the energy sector, that the new institution was established with the specific goal of reviving ailing energy projects with the assistance of the CEB, Lanka Electricity Company and Lanka Transformers Limited.

He added that SEASL will act as a regulator and even the newly formed establishment would have to obtain licenses through the SEASL.

The Power and Energy Ministry has so far earmarked for revival 130 mini hydro power plants capable for generating a capacity of 250 MW.

Ranawaka said the establishment of the Sri Lanka Energy (Pvt) Ltd was vital considering the growing importance of utilising renewable energy sources, particularly with climate change and global warming becoming a scourge to mankind.

He said new entity would not only ease the workload of the Sustainable Energy Authority but also guide it in its future endeavours.

He stressed that Sri Lanka Energy was established not to compete with the private sector, but to support it.

He said that the ministry aims to meet 20 percent of the country’s electricity demands through renewable energy sources by 2020.

He also said that although solar and wind power was cheaper, problems arise when it comes to connecting these plants to the national grid. "Thus, coal-fired power plants is the next best option," he said.

Ranawaka assured that steps would be taken to upgrade the grid to suit modern requirements and systems.

S. E. Diddeniya would function as the CEO of Sri Lanka Energy. The CEB Chairman is Prof. Wimaladharma Abeywickrema.

Related Info :

• Sri Lanka Non Conventional Renewable Energy Contribution to the National Grid was 6.8pct in 2010 with New Projects