Sri Lanka regulator approves power plan without coal

ECONOMYNEXT – Sri Lanka power regulator has approved a long term generation plan for 2018-2037 has been approved without coal plants, with mostly diesel with liquefied natural gas plants and renewables.

PUCSL said CEB’s recommended base plan with some coal was disallowed, and an optional plan with liquefied natural gas and a renewable plan was estimated to be cheaper without counting externalities but with updated fuel costs.

CEB has considered coal at 54 dollars, plus 15 for logistics, and LNG at 7.5 dollar per British Thermal Unit and 2.5 dollar for logistics.

The regulator used adjusted prices of 66 dollar a tonne plus 15 dollars and 5.9 dollar per BTU for 2.5 for logistics.

Currently coal is imported at higher prices.

Externalities refer to costs such as environmental damage and health effects on people from pollution, which can vary based on salaries and healthcare costs.

CEB’s base case with coal at average fuel prices were calculated at 10,900 million US dollars, while CEB with no coal was estimated at 10,747 million dollars.

According to CEB proposed fuel prices the base case was 11,877 million dollars and without coal 12,422 million dollars.

With externalities with coal a cost of 15,068 million dollars was arrived at. It used costs from a European study as there were no local studies.





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