Sri Lanka: Energy–Field Note 5

 It was emphasized that the factors namely energy security and self-sufficiency in energy, enhancing energy efficiency, managing the demand, new technological and management strategies of saving energy, tariff system and the price of energy should be jointly considered.

This series is based on the excerpts of the first report of the Sub-Committee in identifying short and medium-term programmes related Economic Stabilization of the National Council tabled in the Parliament by Patali Champika Ranawaka as the Chair of the Sub-Committee.  Composition of the Sub-Committee in identifying short and medium-term programmes related Economic Stabilization of the National Council,  Patali Champika Ranawaka (Chair), Naseer Ahamed, Tiran Alles, Sisira Jayakody, Sivanesathurai Santhirakanthan, Wajira Abeywardana, A. L. M. Athaullah, Rishad Bathiudeen, Palani Thigambaram, Mano Ganesan, M. Rameshwaran; all are members of the house representing various political parties – editors

File photo of Norochcholai coal power plant [ Photo credit: Environmental Foundation Limited (EFL)]


Background

It was identified that the economic growth of Sri Lanka and the demand for and supply of energy (oil, coal, gas and renewable energy) are inter-connected with one another.

It was also identified that any policy related to energy should be considered in conjunction with the current economic bankruptcy of Sri Lanka, the shortage of and the difficulty in drawing foreign exchange and the policies of similar countries that compete with Sri Lanka for exports and economic factors, etc.

It was emphasized that the factors namely energy security and self-sufficiency in energy, enhancing energy efficiency, managing the demand, new technological and management strategies of saving energy, tariff system and the price of energy should be jointly considered.

It was further identified that an administrative, managerial and financial restructuring of the state-owned energy sector institutions such as the Ceylon Electricity Board (CEB), Lanka Electricity Company (LECO), Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminal Ltd and Litro Gas Company is essential.

It was identified that there has been a significant decrease in the consumption of all forms of energy (fuel, electricity, gas), and factors such as the economic collapse, high prices and the limited supply has contributed to this situation.

Proposals and Solutions

As medium-term measures, it is proposed to acquire minimum seismic data (2D) systems for the petroleum resources development blocks (20 core blocks, 890 sub-blocks) that have been identified at present in the Sri Lankan coast, to provide opportunities to the producers (upstream

development) for the blocks of which data are already available, to obtain an appropriate financial model for the country, to develop the legal framework for that, and to commence an accelerated project (three-year) to supply natural gas to the gas turbines of the Ceylon Electricity Board.

It is proposed to declare an Energy Emergency.

Considering that Sri Lanka is not currently accountable internationally for carbon emissions (considering Sri Lanka’s per capita carbon emission to be 0.95 metric tons, and considering the per capita carbon credits as 2.1 metric tons according to the 2007 International Convention on Carbon Credits), and considering both the facts that Sri Lanka is a country that is seriously affected by the weather and climate changes caused by international emissions and that Sri Lanka is an island nation, it is proposed to immediately redevelop practically the 2030 carbon emission targets. In so doing, the policies should be decided on taking into consideration the composition of primary energy that affects the overall emission rather than electricity, which is a secondary energy.

To implement the following measures through an accelerated programme that runs up to year 2026:

Encouraging high-quality fuel and electricity consumers for self-sufficient energy supplies.

Granting permission immediately for power supply which overlaps between the CEB transmission space (2000 MW) and the 1600 MW licensed by the Sri Lanka Renewable Energy Authority. Immediate increasing of the existing rooftop solar power supply of 690 MW by further 600 MW.

Publicizing the renewable energy sources, geographical zones and evacuation brands and making public aware of them

Expediting the provision of renewable energy storage facilities (battery systems, water pump house storages), regularizing the time-varying tariff system and expediting the provision of meters required for that in order to control the night-time demand.

Providing a data platform for the private sector to sell and export old appliances and to import new appliances under the theme “new equipment in place of the old” in order to promote energy saving appliances (new bulbs, home appliances, machines etc.)

Under the same strategy described above, providing a platform for the private sector to convert the motor cars that use fuel oils into electric cars and hybrid cars.

Allowing the families of Sri Lankan migrant workers who send remittances to use a portion of their remittances to install solar panel battery systems and accessories for their homes and the homes of their family members.

Providing space for the private sector to explore the potential for power evacuation through wind power and solar power, which are not currently extractable, and for producing hydrogen fuel.

Publicizing the formula of electricity charges, updating the fuel price and the electricity bill once in every month and six months respectively. Determining the water bill and transport charges in accordance with that.

Amalgamating the Ceylon Electricity Board and its affiliated institutions and the Ceylon Petroleum Corporation and its affiliated institutions which is a part of the fuel billing system for increasing the technical and financial efficiency of these institutions having taken into consideration the cost for employees’ salaries and other expenses.

Introducing Key Performance Indicators (KPIs) on electricity losses, oil transmission losses, power outages and downtime, financial discipline in the power sector and entering into collective agreements with employees.

Short term proposals

Appointing an Energy Manager from employees of every state institution and saving energy costs by 10%.

Deploying 5% of biofuel which is properly formulated for Puttalam power plant.

Operating the refinery continuously and using crude oil that can give maximum contribution to CEB fuel requirement, petrol, diesel, naphtha, kerosene and gas requirement. Recommending the possibility of using Octane 87, 90, 92 again in suitable vehicles after a formal, quick and scientific test considering it as an emergency situation and determining the market price accordingly.

Increasing the supply of diesel and reducing the price of diesel, which is commonly used for industrial agriculture, fishing and public transportation (as in the train era). Promoting the provision of online services and using digital market equipments in general to manage traffic needs.

Utilizing the additional 150 MW for night peak by implementing Uma Oya project.

Source: Sri Lanka Parliament

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