Sri Lanka Hydro Power Generation Picks up Sharply in 2013

02nd April 2013, www.lankabusinessonline.com

Hydro power generation has picked up sharply in Sri Lanka allowing state-run Ceylon Electricity Board to cut thermal power, while demand was barely growing in January 2013, official data shows.

Total power generation in the month rose just 0.6 percent to 987 GigaWatt hours (millions of units of electricity) from a year earlier.

In December total generation fell in absolute terms by one percent to 988GWh amid a slowing economy and higher tariffs which promote conservation.

In 2012 total generation grew just 2.4 percent to 11,807GWh as the economy slowed, with some power cuts also reducing generation, as a large coal plant broke down repeatedly.

This year the CEB is expecting to sell 10,950GWh of energy. Sales could be lower than generation due to system losses.

Data released by the Central Bank shows CEB's hydro power generation grew 270 percent to 593GWh in January 2013 from a year earlier, while purchases from private power producers plunged 60 percent to 214GWh.

CEB's own thermal generation - which includes coal power - was also down 21 percent to 234GWh.

CEB has sought a price hike from April. The regulator removed three thermal plants whose power purchase agreements had expired but which were listed in the generation schedule for 2013 shaving off 15 billion rupees in costs filed by the power firm.

From late 2011, low rainfall triggered a steep increase in thermal generation, creating large losses in both the CEB and state-run Ceylon Petroleum Corporation which sold subsidized fuel to the power firm.

The losses which were filled by bank loans, was ultimately accommodated by Central Bank credit (printed money), making the Sri Lanka rupee fall from 110 to 134 to the US dollar.

Market pricing energy helps reduce bank credit demand and avoid money printing which in turn helps keep inflation low and the exchange rate stable.

Related Info :

• Electricity Tariff Hike - Industries Get Biggest Subsidy, Hotels Marginally Subsidized & General Purpose Customers to Pay in Excess of Costs - an Analysis by the Regulator

• Electricity Tariff Increase - First, Operate Hydro Plants in an Optimum Manner, Improve Plant Efficiencies, Cut Losses and Switch to more Economical Fuel

• Sri Lanka Combined Cycle Power Plants more Expensive than Diesel Engines - Information on Power Sector not Available in the Past Now Coming Out

Sri Lanka's Hemas Power Earnings up on Hydro Power

29th July 2010, www.lankabusinessonline.com

Sri Lanka's Hemas Power said net profit for the June 2010 quarter shot up 967 percent to 80 million rupees from a year ago on a sharp increase in earnings from hydropower.

Sales of the company, a unit of the Hemas Holdings group, fell five percent to 729 million rupees owing to lower thermal power revenue, a stock exchange filing said.

"The reduction arose manly from an 11 percent reduction in revenue at Heladhanavi," Hemas Power managing director Kishan Nanayakkara said.

"However, the excellent performance of the hydropower sector reflecting a 405 percent increase in revenue between comparative quarters helped to nullify this impact to some degree."

Revenue from thermal power fell to 669 million rupees in June 2010 from 755 million the year before while revenue from hydro power rose to 53 million from 11 million rupees.

Profit from thermal power rose to 42 million from seven million rupees while profit from hydro power shot up to 40 million from six million rupees a year ago.

Nanayakkara said the revenue reduction at Heladhanavi stemmed from a tariff cut and lower power generation owing to a

maintenance overhaul.

"Almost half of our net profits for the quarter derived from the hydropower sector," he said.

"Though hydropower is seasonal, the fact that it now influences our net profits considerably signifies the positive impact of

our effort to spread the portfolio balance between the hydropower and thermal sectors."

Lower finance costs at the Heladhanavi plant and the interest income earned from investments also helped to increase the

company’s profits.

Nanayakkara said the firm's Giddawa Hydro Power plant made a net profit of 16.0 million rupees for the quarter and its Upper

Agra Oya Hydro Power plant a net profit of 25.0 million rupees.

"The power generation at both hydropower plants was considerably higher than the anticipated generation levels during the

quarter."

The firm is building another hydro power plant called the Magalganga project.

"We anticipate that the forthcoming quarter also to be a reasonably good one although our two hydropower plants will move in

to the dry-season until the forthcoming North-East monsoon season which begins in October or in November," Nanayakkara said.

Kerawalapitiya Power Plant Begins Operations. Combined Cycle Power Plant Adds 100MW to National Grid

20th February 2010, www.colombopage.com

Sri Lanka President Mahinda Rajapaksa ceremoniously opened the final stage of Kerawalapitiya Combined Cycle Thermal Power Plant today adding another 100 mega watts of power to the national grid.
The first phase of the project added 200 mega watts of power to the national grid. The combined capacity of the facility will now provide 300 mw of electricity to the national grid.

The Kerawalapitiya Power Plant constructed in a suburb of capital Colombo was completed within two years. It was built by a local company at a cost of USD 309 million.

The power generation at the Kerawalapitiya Power Plant is by a combined cycle system fueled by natural gas and costs much less than the average thermal power plants that burn large quantities of oil for power generation.

The project is one of President Rajapaksa's important goals under the Mahinda Chinthana to make the country energy-sufficient in the future.

Electricity demand in Sri Lanka is growing at 8% annually and the Ceylon Electricity Board hopes to meet this demand with the assistance of the Kerawalapitiya Power Plant.

Power and Energy Minister John Seneviratne, Fisheries Minster Felix Perera, Senior Advisor to the President Basil Rajapaksa, Minister Sarath Gunarathna, Secretary to the Ministry of Power and Energy M.M.C. Fernandez also participated in the occasion.