ECONOMYNEXT – The Ceylon Electricity Board (CEB) has signed a power purchase agreement (PPA) for the Sahasdanavi 350 MW combined cycle power plant, which will operate using Re-Liquefied Natural Gas (R-LNG), the Sri Lankan power utility said.
Construction of the plant is scheduled to begin soon, CEB said in a statement.
The power plant will be built, owned and operated by Sahasdanavi Company Limited, and after 25 years its ownership will transfer to the CEB.
The plant will be able to supply electricity to the national grid within 30 months in open cycle operation, CEB said, adding that the full combined cycle will be operational 12 months after that.
After switching to combined cycle operations using R-LNG, generation cost of the Sahasdanavi plant is expected to be around 37 rupees a unit.
The plant will be able “to provide flexible power that can be operated on demand, particularly at night and during periods of reduced wind speed” the CEB statement said. “It is thus able to balance the variations in solar and wind power generation.”
Although Sri Lanka’s current renewable electricity generation capacity is higher than peak demand, the seasonality and often variable nature of hydroelectric, wind and solar power sources limit renewable energy’s contribution to the country’s total electricity generation.
By 2028, Sahasdanavi and all other such power plants will be fully converted from diesel fuel to R-LNG, CEB said.
In December 2024, the Government approved the establishment of Sri Lanka’s LNG supply infrastructure, led by CEB and CPC. The project includes the development of:
• A Floating Storage and Regasification Unit (FSRU)
• R- LNG pipelines
• Supply facilities to serve power plants and industrial consumers
This infrastructure will also enable the conversion of existing oil-burning power plants to R-LNG. (Colombo/Apr11/2025)