ECONOMYNEXT – Sri Lanka is expecting finalize power purchase agreements with ACE Embilipitiya and ACE Matara power plants within days to link to the island’s southern grid, Energy Minister Kanchana Wijesekera said.
ACE Matara has about 100Mega Watts of capacity and ACE Matara about 23, he said.
The two Aitken Spence plants driven by furnace had responded to a call to supply power and avoid power outages after Samanalawewa reservoir had to release more than planned water for paddy cultivation in dry conditions.
V Power Hambantota with 30MW and V-Power Galle with 15 MW which was driven by diesel was also given an opportunity to respond, Minister Wijesekera said.
The cabinet of ministers had given covering approval to negotiate and sign power purchase agreements with the two Aitken Spence plants.
A technical evaluation committee and a cabinet appointed procurement committee was in discussions.
The two companies will be given fuel and they are only expected to provide the machines, he said.
The capacity charge could be around 3 to 4 rupees but he was not personally aware of the exact amounts, Minister Wijesekera said. The per unit charge may depend on the dispatch.
The CEB planned to procure both plants because they could replace some of the high cost CEB plants, he said.
Several older CEB plants were more expensive to operate.
“We need at least about 100 MegaWatts,” Minister Wijesekera said. “As much power utilizing those plants would be an additional benefit. May be if there is a surplus of power we can stop some of the high cost power power plants that is in use today.
“If the GT-7 is going to cost us 143 (rupees), and the other plant is going to cost between 60 to 65 rupees, it makes perfect economic sense to go with those power plants.”
(Colombo/Aug15/2023 – capacity charge correction)