Sri Lanka buys 400MW of floating emergency power

ECONOMYNEXT – Sri Lanka’s cabinet of ministers had given approval to buy 400 MegaWatts of  emergency power for up to nine months  to solve power crisis triggered by delays in building planned power plants.

The state information office said 200MW of floating power will be bought at 26.20 rupees a unit for six months from June 2019 from a floating plant off Kerawalapitiya.

Another 200 MW will be bought for nine months from September 2019.

There had been concern about procuring large volumes of emergency power without competitive bidding from Turkey based floating power supplier and that the plants may be locked in for up to three years.

Under Sri Lanka’s electricity law, the cabinet of ministers can approve emergency power without competitive tender.

Sri Lanka’s President Maithripala Sirisena cancelled a coal power plant, pushing up power costs, and the current administration also delayed the award of a stop gap 300MW plant amid charges of corruption.

Sri Lanka had already purchased 100MWs emergency power through comepetitive tenders. (Colombo/May22/2019)

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