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Tuesday April 23rd, 2024

Sri Lanka gets 6000MW of renewable energy proposals as competitive bidding ends

ECONOMYNEXT – Sri Lanka had received proposals from operators to build around 6,000MW of renewable capacity when expressions of interest were called, according to industry officials as competitive procurement was also ended.

Adding 1.500 MW renewable capacity to the grid will not be a challenge, officials of the Federation of Renewal Energy (FRED) have told reporters.

Sri Lanka had high feed-in tariffs above global rates for renewable energy at one time, which were given against the country’s electricity law. The Feed-in Tariffs were then halted and competitive bidding was brought in.

When feed-in tariffs were in place over 700MW of capacity were added, according to the renewable industry.

The renewable industry representatives say under competitive tendering new additions to the grid had reduced.

However, Ceylon Electricity Board officials have said that tendering was progressively blocked at high political levels and tender documents prepared by the CEB did not go past the minister with pressure put into bringing back feed-in tariffs.

A case in point was a tender for 190 MW of renewable energy plants which was systematically blocked at the minister level pending the bringing back of feed-in tariffs according to critics.

Related: Sri Lanka renewable power competitive tenders stuck for 10 months without a ministerial nod

Sri Lanka’s sustainable energy authority has now outlined the following renewable feed-in tariff for CEB to procure plants without competitive tender.

These include 32 rupees per unit for mini-hydro, 29 for wind and over 33 rupees per unit for solar, reducing over time. However, there is a scalable rate for operation and maintenance.

Sri Lanka’s parliament backed by the ruling party recently changed the electricity law to allow non-competitive bidding, which the opposition said will pave the way for systematic procurement corruption.

Related:  Sri Lanka opens floodgates for corruption in power sector: Harsha

Sri Lanka’s electricity sector has been a magnet for corruption with political and business interests trying to push high-cost plants to the grid, including in LNG procurement.

Sri Lanka however is now in the worst currency crisis in the history of the island’s intermediate regime central bank after soft-pegging macro-economists printed money to suppress rates yet again.
(Colombo/Oct23/2022)

Comments (2)

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  1. Parakrama Jayasinghe says:

    This is a total misrepresentation of the actual situation. There are many statements which are totally untrue. For example CEB tendered for over 300 MW of solar but less than 50 MW were implemented showing that their system of tendering was totally unviable. It is not true to say that the FIT system is against the law. It is covered by the SLSEA act. But some personal opinions on interpretation of a particular clause in the Electricity act was used illegal to block all RE projects under the SEA system for seven years. This is the cause for the present crisis. I can provide substantiation of the above

  2. Vidhura Ralapanawe says:

    Sadly a piece of sloppy reporting.

    1. The headline is wrong as we have not stopped competitive bidding. In fact a 100MW solar tender is ongoing along with another 60MW.
    2. “Sri Lanka had high feed-in tariffs above global rates for renewable energy at one time, which were given against the country’s electricity law.” Please share the court case that determined that this scheme was against the electricity law.

    3. Please share the basis of the claim that Sri Lanka has high feed in tariffs above global rates also? Are you getting your talking points from CEBEU?

    4. “Sri Lanka’s parliament backed by the ruling party recently changed the electricity law to allow non-competitive bidding” What is ‘non-competitive bidding’? I mean the Act amendment removed the block placed by CEB for feed-in tariffs – how did this become non-competitive bidding?

    EconomyNext showing its fossil fuel bias again. Planning to get bought by Murdochmedia?

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Comments (2)

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Your email address will not be published. Required fields are marked *

  1. Parakrama Jayasinghe says:

    This is a total misrepresentation of the actual situation. There are many statements which are totally untrue. For example CEB tendered for over 300 MW of solar but less than 50 MW were implemented showing that their system of tendering was totally unviable. It is not true to say that the FIT system is against the law. It is covered by the SLSEA act. But some personal opinions on interpretation of a particular clause in the Electricity act was used illegal to block all RE projects under the SEA system for seven years. This is the cause for the present crisis. I can provide substantiation of the above

  2. Vidhura Ralapanawe says:

    Sadly a piece of sloppy reporting.

    1. The headline is wrong as we have not stopped competitive bidding. In fact a 100MW solar tender is ongoing along with another 60MW.
    2. “Sri Lanka had high feed-in tariffs above global rates for renewable energy at one time, which were given against the country’s electricity law.” Please share the court case that determined that this scheme was against the electricity law.

    3. Please share the basis of the claim that Sri Lanka has high feed in tariffs above global rates also? Are you getting your talking points from CEBEU?

    4. “Sri Lanka’s parliament backed by the ruling party recently changed the electricity law to allow non-competitive bidding” What is ‘non-competitive bidding’? I mean the Act amendment removed the block placed by CEB for feed-in tariffs – how did this become non-competitive bidding?

    EconomyNext showing its fossil fuel bias again. Planning to get bought by Murdochmedia?

Iran President to open Sri Lanka $514mn irrigation, hydro power project

MULTIPURPOSE: Uma Oya multipurpose development project is the largest since the end of the Mahaweli projects.

ECONOMYNEXT – Iran President Seyyed Ebrahim Raisi will inaugurate an irrigation and hydropower project that was designed and built by Iranian engineering firm and was also initially financed before international sanctions hit the project.

The Uma Oya (River) project will irrigate 4,500 acres of new agricultural land, generate 290 Gigawatt hours of electricity and also provide drinking water, a government statement said.

Sri Lanka had awarded an engineering, procurement, construction (EPC) to Iran’s FARAB engineering group to design and construct the 514 million dollar multipurpose project in 2010.

The project was funded until 2013 with a million US dollar credit from the Export Development Bank of Iran but international sanctions prevented the country from continuing financing, a government statement said.

The project continued with funding from Sri Lanka. Sri Lanka had since repaid 19.3 million dollars of the credit and 35.2 million remains outstanding.

The Uma Oya project has a 120MW of hydro power generators, which can generate 290 Giga Watt hours of energy.

Each year 145 million cubic metres of water will be taken from Uma Oya to the Kirindi Oya river valley after generating electricity in an underground power station.

It will irrigate 1,500 hectares of existing agricultural and 4,500 hectares of new land in the Moneragala district, where crops can be cultivated in both the Maha and Yala seasons.

About 39 million cubic meters of water will be used for drinking and industrial purposes.

Two reservoirs built at Dyraaba and Puhulpola in Uma Oya basin is connected by a 3.98 kilometre conveyance tunnel and water is taken through a 15.2 kilomtre headrace tunnel to an underground power station. A tailrace tunnel takes water from the power station to the Kirindi Oya basin.

The project was originally expected to be completed in 2015, but due to financing delays and later water leaking into the headrace tunnel and the Covid pandemic had delayed it. The project completion date was extended to March 31, 2024 and defect liability date to March 31, 2025.

(Colombo/April23/2024 – CORRECTED Iran President Seyyed Ebrahim Raisi will inaugurate an irrigation and hydropower project that was designed and built by Iranian engineering firm.)

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Sri Lanka state oligopoly allowed to import some black gram

ECONOMYNEXT – Sri Lanka has allowed the import of some black gram, by three state agencies, according to a gazette notice issued under the hand of President Ranil Wickremesinghe.

Import licenses will be given for 2,000 metric tonnes of the seed classified under HS Code 7312.31.22 and 29.

Sri Lanka State Trading Corporation, National Food Promotion Board and Sri Lanka Hadabima Authority is to be given import licenses.

Traders have resorted to smuggling some types of black gram (ulundu) mis classified as chick peas, to get over high taxes and import restrictions.

Tamil legislators have also protested the import controls, which they go into several key ethnic foods they consume. (Colombo/Apr23/2024)

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Sri Lanka Foreign Ministry consular division shifted to Battaramulla

ECONOMYNEXT – Sri Lanka’s Foreign Ministry said it consular division would be shifted to the Suhurupaya building in Subuthipura, Battaramulla from May 02, 2024.

Document authentication services provided by the Consular Affairs Division in Colombo will be suspended on 29 and 30 April 2024 held transfer the Electronic Document Authentication System (e-DAS) to the new premises at Suhurupaya.

Urgent applications for authentication to the Consular Division in Colombo, or any Regional Consular Offices by 4.15 pm on 26 April 2024, the Foreign Ministry said.

Regional Consular Offices in Jaffna, Trincomalee, Kurunegala, Kandy and Matara will remain open to accept applications.

Authenticated documents will be delivered to the applicants only on Thursday, 02 May 2024.

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