11th December 2010, print.dailymirror.lk, By Kelum Bandara and Yohan Perera
The government will look for private investments and management expertise as a means of converting loss-making public enterprises into profitable ventures, the Finance Ministry said yesterday in its Performance Report.The report submitted to parliament said the Finance Ministry would consider amalgamating public enterprises as another step towards making these institutions either profitable or enable them to break-even.
It said major re-structuring programmes had been introduced to the Ceylon Electricity Board, the Ceylon Petroleum Corporation, SriLankan Airlines, the Sri Lanka Insurance Corporation, Sri Lanka Transport Board, and the Water Supply and Drainage Board to improve their operational effectiveness.
The State Resources and Enterprise Development Ministry has been informed of 26 defunct or underperforming public ventures and while steps have been taken to invite private investors to develop six of these ventures plans are also underway to call for expressions of interest from prospective private investors who may wish to develop the other 20 enterprises.
Showing posts with label Ceylon Electricity Board. Show all posts
Showing posts with label Ceylon Electricity Board. Show all posts
11 December 2010
30 November 2010
High Potential for Wind Power in Sri Lanka. Five New Plants to be Built. 300MW of Power to be Added
30th November 2010, www.dailynews.lk, By Indunil Hewage
The private sector is optimistic of the wind power industry in Sri Lanka owing to its active participation and investments in the i
ndustry.
The potential for growth in the industry is enormous with expectation of at least 300 megawatts of wind power being added to the national system within the next three years.
Seguwantivu Wind Power and Vidatamunai Wind Power Chief Executive Officer Manjula Perera said more investments are on to build wind power plants in the country.
Five new wind power plants are to be built with an estimated cost of over US $ 60 million.
D L R Energy and Senok Wind Power plan to built two new wind power plants of 10 megawatts each. The 4.8 megawatts wind power plant by Naladhanavi (Pvt) Ltd, three megawatts wind power plant by Ace Power and 1.1 megawatts wind power plant by Vidullanka are scheduled to be built in the coming months.
In addition to that, three wind power plants of 10 megawatts each developed by Senok Wind Power, Seguwantivu Wind Power and Vidatamunai Wind Power are in successful operation since June 2010.
These plants are located in the Puttalam District. These plants have already added over 40 gigawatts of energy to the national grid during the last six months. Three more wind power plants of 10 megawatts each in the Kalpitiya region is now under construction. These power plants are being built by Pavandhanavi, Powergen Lanka and Nirmalapura Wind Power.
All these plants are to be connected to the national grid of the Ceylon Electricity Board (CEB) by mid 2011. “Public Utilities Commission of Sri Lanka has announced the Non-Conventional Renewable Energy Tariff for 2010 and 2011 on November 25. The tariff has encouraged accommodation of more and more renewable energy power plants to the national grid. With the release of new tariff SPPA’s to be signed by CEB with few more companies for wind power projects totalling to around 30 megawatts,” Perera said.
Potential for wind power generation in Sri Lanka has been identified at various stages in the early nineties. This has been verified by the wind atlas released by National Renewable Energy laboratory of USA after detailed studies in Sri Lanka.
Related Info:
Four Wind Power Plants Add 33MW to Sri Lankan National Grid
India Invests $ 18.2mn in Sri Lanka Wind Power Project
Two Wind Power Plants in Puttalam, Sri Lanka
Senok Opens Sri Lanka's First Commercial Wind Energy Plant in Kalpitiya
Sustainable Energy Authority (SEA) - Wind Projects
The private sector is optimistic of the wind power industry in Sri Lanka owing to its active participation and investments in the i
ndustry.The potential for growth in the industry is enormous with expectation of at least 300 megawatts of wind power being added to the national system within the next three years.
Seguwantivu Wind Power and Vidatamunai Wind Power Chief Executive Officer Manjula Perera said more investments are on to build wind power plants in the country.
Five new wind power plants are to be built with an estimated cost of over US $ 60 million.
D L R Energy and Senok Wind Power plan to built two new wind power plants of 10 megawatts each. The 4.8 megawatts wind power plant by Naladhanavi (Pvt) Ltd, three megawatts wind power plant by Ace Power and 1.1 megawatts wind power plant by Vidullanka are scheduled to be built in the coming months.
In addition to that, three wind power plants of 10 megawatts each developed by Senok Wind Power, Seguwantivu Wind Power and Vidatamunai Wind Power are in successful operation since June 2010.
These plants are located in the Puttalam District. These plants have already added over 40 gigawatts of energy to the national grid during the last six months. Three more wind power plants of 10 megawatts each in the Kalpitiya region is now under construction. These power plants are being built by Pavandhanavi, Powergen Lanka and Nirmalapura Wind Power.
All these plants are to be connected to the national grid of the Ceylon Electricity Board (CEB) by mid 2011. “Public Utilities Commission of Sri Lanka has announced the Non-Conventional Renewable Energy Tariff for 2010 and 2011 on November 25. The tariff has encouraged accommodation of more and more renewable energy power plants to the national grid. With the release of new tariff SPPA’s to be signed by CEB with few more companies for wind power projects totalling to around 30 megawatts,” Perera said.
Potential for wind power generation in Sri Lanka has been identified at various stages in the early nineties. This has been verified by the wind atlas released by National Renewable Energy laboratory of USA after detailed studies in Sri Lanka.Related Info:
Four Wind Power Plants Add 33MW to Sri Lankan National Grid
India Invests $ 18.2mn in Sri Lanka Wind Power Project
Two Wind Power Plants in Puttalam, Sri Lanka
Senok Opens Sri Lanka's First Commercial Wind Energy Plant in Kalpitiya
Sustainable Energy Authority (SEA) - Wind Projects
02 June 2010
Sri Lanka Tests 1st Coal Power Plant in Sept. 300MW out of 900MW Norochcholai Plant to National Grid by 2011
01st June 2010, www.lankabusinessonline.com
Sri Lanka will s
tart testing its first 300 MegaWatt coal power plant in September with plans to connect it to the national distribution grid by January 2011, power minister Patali Ranawaka said.
Sri Lanka's state-run Ceylon Electricity Board is building a 900 MegaWatt Chinese financed coal power plant on a design-build-transfer contract in Norochcholai in the north-western coast of the island. The first phase of the project is 300MW.
"We will start testing the first phase in September," minister Ranawaka said. "We hope to commission it and connect to the grid by January 2011."
Power secretary M M C Ferdinandez said the state power utility had made the first purchase of coal from Indonesia at a price of about 70 US dollars a tonne.
Sri Lanka Shipping Corporation has been engaged for transport and with freight and insurance costs, the landed cost will be about 10 US dollars higher, he said.
Ferdinandez said Sri Lanka is buying low sulphur, low moisture coal which generate lower volumes of ash when burned, which was available from Indonesia, Australia and South Africa.
The coal plant will be a base load plant which will operate throughout the day. Sri Lanka has been running expensive liquid fuel plants including gas turbines for base load making the CEB run large losses.
Coal is expected to reduce the costs of power generation. The CEB is expecting to lose about 40 billion rupees in 2010.
Sri Lanka will s
tart testing its first 300 MegaWatt coal power plant in September with plans to connect it to the national distribution grid by January 2011, power minister Patali Ranawaka said.Sri Lanka's state-run Ceylon Electricity Board is building a 900 MegaWatt Chinese financed coal power plant on a design-build-transfer contract in Norochcholai in the north-western coast of the island. The first phase of the project is 300MW.
"We will start testing the first phase in September," minister Ranawaka said. "We hope to commission it and connect to the grid by January 2011."
Power secretary M M C Ferdinandez said the state power utility had made the first purchase of coal from Indonesia at a price of about 70 US dollars a tonne.
Sri Lanka Shipping Corporation has been engaged for transport and with freight and insurance costs, the landed cost will be about 10 US dollars higher, he said.
Ferdinandez said Sri Lanka is buying low sulphur, low moisture coal which generate lower volumes of ash when burned, which was available from Indonesia, Australia and South Africa.
The coal plant will be a base load plant which will operate throughout the day. Sri Lanka has been running expensive liquid fuel plants including gas turbines for base load making the CEB run large losses.
Coal is expected to reduce the costs of power generation. The CEB is expecting to lose about 40 billion rupees in 2010.
Sri Lanka's Last Mega Hydro Power Project at Upper Kotmale to Compelete by 2011
30th May 2010, www.news360.lk
The construction work of the U
pper Kotmale Hydro power project, the last such mega hydro power plant to take place in Sri Lanka will see its completion by the 3rd quarter of 2011.
Project Director Shavindranath Fernando told www.news360.lk “by the 3rd quarter of 2011, the project will be completed”
Once completed the plant will add 150 MW into the national grid, which according to energy specialist Dr. Tilak Siyambalapitiya will contribute 3.5% of the country’s total electricity requirement for the year 2012.
He said “By 2012 the total electricity requirement of the country will be 12,800 million units and if Upper Kotmale operates by that time, it will contribute 430 million units to the total figure”.
The UKHP is located in the Nuwara Eliya district and will be using the water flowing from the Kotmale Oya, a branch of the Mahaweli Ganga.
The US$ 450 JICA funded Upper Kotmale Hydro power project was in the drawing board since 1985 and was expected to be fully operational in the early parts of 2000.
However pressure from area politicians citing socio-economic and environmental issues delayed the project.
Project Director Fernando said ”all these issues are resolved”.
497 families who lost their homes owing to the project has being settled down in new homes.
Sri Lanka’s electricity demand is growing at 8% per annum.
The construction work of the U
pper Kotmale Hydro power project, the last such mega hydro power plant to take place in Sri Lanka will see its completion by the 3rd quarter of 2011.Project Director Shavindranath Fernando told www.news360.lk “by the 3rd quarter of 2011, the project will be completed”
Once completed the plant will add 150 MW into the national grid, which according to energy specialist Dr. Tilak Siyambalapitiya will contribute 3.5% of the country’s total electricity requirement for the year 2012.
He said “By 2012 the total electricity requirement of the country will be 12,800 million units and if Upper Kotmale operates by that time, it will contribute 430 million units to the total figure”.
The UKHP is located in the Nuwara Eliya district and will be using the water flowing from the Kotmale Oya, a branch of the Mahaweli Ganga.
The US$ 450 JICA funded Upper Kotmale Hydro power project was in the drawing board since 1985 and was expected to be fully operational in the early parts of 2000.
However pressure from area politicians citing socio-economic and environmental issues delayed the project.
Project Director Fernando said ”all these issues are resolved”.
497 families who lost their homes owing to the project has being settled down in new homes.
Sri Lanka’s electricity demand is growing at 8% per annum.
20 April 2010
Sri Lanka's Power Sector Attracts Private investors
19th April 2010, www.lankabusinessonline.com
More private investment is likely to get attracted to Sri Lanka's power sector given stable and growing demand and improve profitability especially among hydro-power producers, a ratings agency report said.
However, investments will be restricted to small power plants of less than 25 megawatts capacity as a new electricity law requires bigger plants to be controlled by government, RAM Ratings (Lanka) said.
It said in a report on the island's power sector that it was important to restore the long-term financial viability of the loss-making, heavily indebted sole buyer of power, the state-owned Ceylon Electricity Board.
"While Sri Lanka may have closed its door to large-scale IPPs, it has embraced the role of IPPs in the 'less than 25 MW' capacity segment," the RAM report said.
" . . . we note that more IPPs are likely to be attracted to the power sector given its salient features such as stable demand, moderate operating risks and long life of assets."
However, the ratings agency identified several inherent risks from a credit-rating perspective.
These include customer-concentration risk as the CEB is the sole purchaser of power, as well as construction risk involving a company’s possible failure to complete construction on time, and fuel risk based on possible interruptions in fuel supply.
RAM Ratings noted that private hydro-power players have improved their profitability of late.
"Their impressive profit performance is underpinned by lower debt levels, better tariff rates and heightened power generation," the report said.
"We observe that these profitability indicators may entice further investor interest in the local power sector."
Private power producers have also sought to dilute their site risks through acquisitions, which so far have not "overly strained" the companies’ balance sheets.
"From a private-investment perspective, the power sector is unique as it is a non-cyclical industry," the report said.
Demand for electricity in Sri Lanka has been increasing with economic growth and more electrification and remains resilient even amid economic downturns.
"This fundamental characteristic results in a stable or predictable cash flow provided there is no off-taker default," the rating agency said referring to the loss-making CEB's capacity to pay.
"In Sri Lanka, the CEB is the sole off-taker; hence the IPPs’ debt-servicing aptitude depends on the off-taker’s willingness and ability to pay its bills on time."
RAM Ratings Lanka said its assessment of the CEB is based more on its systemic importance rather than its financial profile.
In 2008, the state utility company owed 57 billion rupees to the IPPs.
According to the Central Bank the CEB's finances remained weak in 2009 although it had managed to reduce its operating loss to 7.4 billion rupees from 33.3 billion in 2008.
CEB’s short-term borrowings from banks and other outstanding liabilities to the state-owned fuel refiner and to Independent Power Producers increased to 71.6 billion rupees in 2009, the Central Bank said.
More private investment is likely to get attracted to Sri Lanka's power sector given stable and growing demand and improve profitability especially among hydro-power producers, a ratings agency report said.
However, investments will be restricted to small power plants of less than 25 megawatts capacity as a new electricity law requires bigger plants to be controlled by government, RAM Ratings (Lanka) said.
It said in a report on the island's power sector that it was important to restore the long-term financial viability of the loss-making, heavily indebted sole buyer of power, the state-owned Ceylon Electricity Board.
"While Sri Lanka may have closed its door to large-scale IPPs, it has embraced the role of IPPs in the 'less than 25 MW' capacity segment," the RAM report said.
" . . . we note that more IPPs are likely to be attracted to the power sector given its salient features such as stable demand, moderate operating risks and long life of assets."
However, the ratings agency identified several inherent risks from a credit-rating perspective.
These include customer-concentration risk as the CEB is the sole purchaser of power, as well as construction risk involving a company’s possible failure to complete construction on time, and fuel risk based on possible interruptions in fuel supply.
RAM Ratings noted that private hydro-power players have improved their profitability of late.
"Their impressive profit performance is underpinned by lower debt levels, better tariff rates and heightened power generation," the report said.
"We observe that these profitability indicators may entice further investor interest in the local power sector."
Private power producers have also sought to dilute their site risks through acquisitions, which so far have not "overly strained" the companies’ balance sheets.
"From a private-investment perspective, the power sector is unique as it is a non-cyclical industry," the report said.
Demand for electricity in Sri Lanka has been increasing with economic growth and more electrification and remains resilient even amid economic downturns.
"This fundamental characteristic results in a stable or predictable cash flow provided there is no off-taker default," the rating agency said referring to the loss-making CEB's capacity to pay.
"In Sri Lanka, the CEB is the sole off-taker; hence the IPPs’ debt-servicing aptitude depends on the off-taker’s willingness and ability to pay its bills on time."
RAM Ratings Lanka said its assessment of the CEB is based more on its systemic importance rather than its financial profile.
In 2008, the state utility company owed 57 billion rupees to the IPPs.
According to the Central Bank the CEB's finances remained weak in 2009 although it had managed to reduce its operating loss to 7.4 billion rupees from 33.3 billion in 2008.
CEB’s short-term borrowings from banks and other outstanding liabilities to the state-owned fuel refiner and to Independent Power Producers increased to 71.6 billion rupees in 2009, the Central Bank said.
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