Sri Lanka extends Ace Power supply contract
ECONOMYNEXT – The Sri Lankan government has decided to extend a private power purchase agreement with Ace Power to supply thermal power to the grid to make up for shortfalls in generation.
The cabinet of ministers this week approved the deal to extend the contract with Ace Power for three more years when it expires this year.
The power ministry said the government decided to purchase thermal power on an urgent basis from private suppliers to boost generation capacity.
It has authorised the Ceylon Electricity Board (CEB) to enter into emergency power supply agreements with the private sector to buy up to 100 megawatt (MW) of thermal power to ensure uninterrupted supply in the next six months.
This was because water levels in hydro power reservoir were inadequate to meet rising demand and new power plants are still under construction.
(COLOMBO, March 29, 2018)