Energy Supply from Grid Electricity Production

As the sole operator of the Sri Lankan power system, until 1997, CEB owned and operated almost all the
power plants in the national grid. Starting from 1997, many IPPs entered the electricity market,
supplying electricity to the national grid. IPPs operate by entering into long term agreements with CEB.
These contracts are individually executedunder different terms and conditions. By 2013, only seven IPPs
were in operation.

In the early stages, major hydro played a dominant role in power generation and continued until about
1996. Once the economically feasible major hydro schemes reached their saturation, the share oil based
thermal plants in power generation increased. Commencing from the Year 2011, Coal based thermal
power plants are being commissioned. There are no plans to install any more oil based power plants
except perhaps to meet peaking capacity needs in the future.
Different Categories of Power Plants in the National Grid:

(i) CEB hydro power plants

(ii) CEB non-conventional power plants (only wind power at present)
(iii) CEB thermal power plants (oil fired and coal powered)
(iv) Independent Power Producers (IPPs) (presently oil-fired thermal power plants)
(v) Small Power Producers (SPPs) including, power supply from small hydro , wind, solar, biomass sources
and net metered projects.

Apart from the above there are off grid power supplies in some industries such as sugar industry and
some other small scale industries where they have biomass related power generation sources. There are
also a number of village electrification schemes and estates using their own mini hydro power plants of
very small capacities. Most of these schemes are either being upgraded so that they can be connected to
the grid or going into disuse due to the expansion of the grid.

Both CEB and private power producers generate electricity and supply to the national grid. All the large
scale hydro power plants in the country are owned by the CEB. There are also oil-fired thermal power
plants and the coal power plant owned by CEB. In addition to its own power plants, CEB as the single
buyer, purchases electricity to the national grid from private Independent Power Producers (IPPs) who
have entered into contracts with the CEB. All large IPPs are oil fired, while many Small Power Producers
(SPPs) generating electricity from renewable based power plants sell power to the national grid based on
a Standardized Power Purchase Agreement (SPPA).

Table 1.4.7 Total Installed Capacity in the Country

 Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority

Figure 1.4.4 The total installed capacities serving the grid by type of power
plant.
Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
In the Year 2014, a further 600 MW of Coal Power was added to the national Grid. Hence the power
generation significantly changed from a predominantly hydro - oil based system to a predominantly
hydro Coal based system. Table 1.4.7and Figure 1.4.4 shows the total Installed capacity of the system
in 2013 and Table 1.4.8 shows the Generation statistics of the system in 2013 and 2014. Please note the
significant changes that have taken place in the year 2014 compared to the year 2013. It is also worthy to
note the contribution from hydro sources which stood at an all time record generation of nearly 6000
GWh dropping to 3600 GWh in 2014. This shortfall has been met mainly by Coal power plant.

Table 1.4.8 Generation Statistics 2013 and 2014.

Source: CEB Statistical Digest 2014
 Supply from Major Hydro

The topography of the country provides an excellent opportunity to harness the energy stored in
riverwater which flows from the central hills of the country to the Indian Ocean surrounding the island.
Although the use of hydro resource for direct motive power was common in yesteryears, mainly to
provide motive power to over 600 tea factories in the central hill country in the later part of the 19 th
century; most of these went into disuse with the provision of grid electricity using major hydro power
plants.

The major hydropower development commenced with the Kehelgamu Oya Maskeli Oya Project
popularly known as the Laxapana Project. Subsequently with the launching of the Multipurpose
Mahaweli Project and later other hydro power projects total installed capacity of hydro power stands at
1200 MW.

Electricity production has become the sole use of the hydro as an energy resource in recent times apart
from its strategic use in irrigation and drinking water . The contribution of hydro as an energy supply
source is always through its secondary form, which is electricity.

Sri Lanka has two main hydro power complexes; namely Laxapana and Mahaweli, each consisting of
several power plants. Laxapana complex is based on Kelani River and its tributaries, while Mahaweli
complex is based on Mahaweli River and its tributaries. Other than these major schemes, there are two
independent large scale hydro power stations, namely Samanalawewa on Walawe basin and Kukule
Ganga on Kalu ganga basin, while small scale power plants such as Inginiyagala and Uda Walawa are also
generating hydropower using their respective irrigation reservoir storages owned and operated by CEB.

a)Laxapana Complex

Laxapana Complex is a result of Kehelgamu Maskeli Oya development project. The five power stations in the
Laxapana Complex are situated along Kehelgamu oya and Maskeli Oya. The main reservoir at the top of Kehelgamu
oya is Castlereagh reservoir. The rain water from the catchment above the reservoir flowing along the Kehelgamu
Oya gets collected in this reservoir. Main reservoir associated with Maskeli oya is Maussakelle reservoir.

Water collected in Laxapana pond is taken along a tunnel to operate the two machines, which are 37.5
MW each, at Samanala power station at Polpitiya. Water released from Samanala machines flow into
the Kelani river, which is formed by Kehelgamu oya and Maskeli oya.
Sri Lanka has two main hydro power complexes; namely Laxapana and Mahaweli, each consisting of
several power plants. Laxapana complex is based on Kelani River and its tributaries, while Mahaweli
complex is based on Mahaweli River and its tributaries. Other than these major schemes, there are two
independent large scale hydro power stations, namely Samanalawewa on Walawe basin and Kukule
Ganga on Kalu ganga basin, while small scale power plants such as Inginiyagala and Uda Walawa are also
generating hydropower using their respective irrigation reservoir storages owned and operated by CEB.

Figure 1.4.2 Laxapana Complex

b)Mahaweli Complex

The first reservoir in Mahaweli complex is the Kotmale reservoir which gets water after generation
of power in the run-of-the river power plant at Upper Kotmale power station generating 150 MW.
Water is taken to operate the three turbine generator units (each of 67 MW) at Kotmale power
station. Water released after operations flows along the river into the Polgolla barrage, which is a
small pond. From Polgolla barrage, water is diverted to North Central province for irrigation and
other purposes. This is done by carrying the water through a long tunnel to Ukuwela power station
to operate two 20 MW machines. Water released after operating these 02 units flow to Bowatenna
reservoir. Water is sent to Anuradhapura district direct from Bowatenna reservoir, and water used
to operate the 40 MW machine at Bowatenna power station is sent to Elahera anicut, again to
distribute water for irrigation.

When water spills over the Polgolla barrage, it flows along the Mahaweli river to the large Victoria
reservoir. The three 70 MW hydro units at Victoria power station operates using water from Victoria
reservoir. Water released after operations at Victoria power station flows to Randenigala reservoir,
which is the largest reservoir in Mahaweli complex. Water at Randenigala reservoir is used to
operate the two 60 MW machines at Randenigala power station and then released to Rantambe
reservoir. Though it is called a reservoir, it is also a small pond which can be regulated. Water at
Rantambe pond is taken to operate the two machines at Rantambe power station, which are of 25
MW capacity each. The discharged water from Rantambe power station is sent to Minipe anicut.
This water is then distributed to right and left banks of Minipe canals to use for downstream
irrigation and other purposes.

The primary objective of the Multi Purpose Mahaweli system is to provide water for irrigation and
other uses. Power generation is the secondary purpose. Ceylon Electricity Board and Water
Management Secretariat of Mahaweli Authority of Sri Lanka jointly decides the water utilisation of
these reservoirs, in a manner which both parties benefit, ultimately giving the maximum benefit to
the country.

The total Installed capacity of Mahaweli Complex is 816 MW operated for hydropower generation
and arising from irrigation releases for which the entire project was conceived and implemented.
Figure 1.4.3 Mahaweli Complex
c) The Samanala Complex

The Samanala Complex comprises of the Samanalawewa Power station of 120 MW, Kukule Ganga Hydro
power plant of 74 MW and two other irrigation related power plants of 6 MW at Udawalawe and 11 MW at
Inginiyagala. 3 MW pilot wind power plant at Hambantota is also grouped under Samanala Complex
making a total of 214 MW of installed capacity.

Table 1.4.9 Storage Capacities and Generation of Major Hydro Power Stations
 Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority

ii) Supply from Thermal Power Plants

There are seven oil-fired thermal power plants and one Coal Power plant that operate under the CEB.
Seven Independent Power Producers (IPPs) operate in private capacity, supplying power to the national
grid. Table 1.4.10 summarises thermal power generation in 2013.

Table 1.4.10 Installed Capacities and Generation of Thermal Power Plants

 Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority

In the year 2013 the oil-fired CEB power plants generated 1,326.4 GWh, while the coal-fired power plant
generated 1,469.4 GWh. The IPPs generated 2,023.9 GWh in total. A new oil-fired power plant (Uthuru
Janani) of 24 MW was commissioned by the CEB in Jaffna in 2013, commenced generation in early 2013.
Seven IPPs remained operational by end 2013. IPPs operate by entering into long term agreements with
CEB. These contracts are individually executed under different terms and conditions. In the year 2014,
these contributions changed significantly to 1,696 GWh from CEB owned oil fired power plants while CEB
owned Coal Power plant after its commissioning in 2014 generated 3,202 GWh. IPP generation in 2014
was 2,610 GWh. The main reason for this shift is the availability of the Coal power plant generation at a
very cheap cost while the generation of hydro from the previous year was significantly low.

iii) Small Power Producers

New Renewable Energy power plants are operated by private sector investors and the installed
capacityis limited to 10 MW since the plants are non dispatchable. The first Small Power Producing Plant
(Dick Oya) was commissioned in 1996, turning a new leaf in the New Renewable Energy industry. The
number of small power producers has increased rapidly. Attractive tariffs are offered through the cost-
reflective, technology-specific tariff scheme, a policy intervention of the Ministry of Power and Energy
through the Working Group on Renewable Energy, and the dedicated financing facilities provided by a
funding programme, also contributed to the development of the industry. At present the number and
variety of SPPs have increased many folds, and is scattered islandwide. Table 1.4.11 summarises the
installed capacities and generation of SPPs contributing to the NRE industry. In the year 2013 total
renewable based Small Power Producers had an installed capacity of 356MW from 148 Plants which rose
to 437MW in 2014 from 168 plants yielding 1,176 GWh in 2013 and 1,215 GWH in 2014 indicating a
percentage of around 10% of gross generation.

Table 1.4.11 Details of grid connected Small Power Producers

Year 2013 2014

Source Number MW GWh Number MW GWh

Small Hydro 131 356 916 144 437 902

Wind 10 78 232 15 128 270

Other 7 14 28 9 21 43

Net-metered Projects
Net-metering is a billing system that allows electric customers to sell any excess electricity generated by
their distributed generation (DG) systems. Some common examples include rooftop solar panels, energy
storage devices, fuel cells, micro-turbines, small wind, and combined heat and power systems.
Customers with these types of generation systems connect to the local electric grid and use the grid both
to buy power when the DG systems are not producing sufficiently, and to sell power when excess is
generated. While many different distributed generation sources may be eligible for net metering credits,
solar rooftop installations are by far the most common type of distributed generation promoted with net
metering.

The purchase of electricity from the Small Power Producers (SPP) operational since 1996, allows a
developer to finance and build a renewable-energy based power plant up to 10 MW, and sell its output
to the grid at a standardized price. In addition to the above programme, the Government made a policy
decision in 2008 to allow any electricity customer who generates electricity using a renewable energy
source to connect his facility to the distribution network. The customer shall be billed only for the net
amount of energy purchased from the Distribution Licensee. CEB Distribution Licensees and Lanka
Electricity Company (Pvt.) Limited have implemented the net-metering programmes, with effect from
June 1, 2010. Both electricity distributors, that is, the Ceylon Electricity Board (CEB) and the Lanka
Electricity Company Pvt. Ltd. (LECO), offer net metering to their customers. Both regulations are nearly
the same, with the only difference in fees for net-metering. Net-metering involves a ten year contract, a
generation facility with a limit of 10 MW or the contract demand of the premises and any renewable
resource for power generation. The surplus will be credited to the customer but no payment will be
made for the surplus nor can the customer sell it to another customer. Further to these developments, a
funding programme under the Sustainable Power Sector Support Project of the ADB engaged two
financing institutions to finance rehabilitation of old micro hydro schemes in the plantation factories.
These facilities which were operating in the off-grid mode will be grid connected under the net-metering
scheme in few years time.

CEB Wind Power

In 1999, CEB commissioned the first grid connected wind power plant, primarily as a pilot project. The
pilot wind plant is located in a 17 ha land close to Hambantota town. Table 1.4.12 gives the capacity and
generation of the wind power plant.

Table 1.4.12 Installed Capacity and Generation of CEB Wind Power Plant

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority

Gross Generation of Grid Connected Power Plants
The total generation from major hydro plants, thermal plants, new renewable energy plants and net
metered projects in 2013 was 12,005.5 GWh. Compared with the gross generation of 2012, which was
11,878.8 GWh, the generation in 2013 marks an increment of 1.1%. In early stages, the energy mix
included only major hydro plants and oil-fired thermal plants. The generation mix started diversifying
from 1996. At present however, the thermal share is dominant and it would continue to do so with the
advent of the scheduled commissioning of coal power plants. Table 1.4.13 Gross Generation
of Grid Connected Power Plants

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority

Figure 1.4.4 Gross Generation to CEB Grid
Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority

The bulk of electricity generation in Sri Lanka is from grid-connected power plants. Table 1.4.14 gives the
summary of electricity generation from grid-based and off-grid, conventional and non-conventional
sources.

Table 1.4.14 Total Gross Generation in Sri Lanka

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority