NATIONAL ENERGY POLICIES AND IMPLEMENTATION BARRIERS FOR WIND ENERGY SECTOR IN SRI LANKA

U.I.K. Galappaththi1, A.G.T Sugathapala2, A. De Silva3 Department of Energy Systems Engineering, Glasgow Caledonian University, Glasgow, UK1, 3 Department of Mechanical Engineering, University of Moratuwa, Sri Lanka2 Udayanga.Galappaththi@gcu.ac.uk1, A.Desilva@gcu.ac.uk3 Thusitha@mech.mrt.ac.lk,2

Abstract This paper reviews the policy incentives to promote wind energy sector in Sri Lanka. Setting-up international collaborative business ventures between local industry and wind energy sector companies in developed countries is proposed as an implementation strategy that evolve wind energy sector in Sri Lanka. The framework that aid to attain implementation strategy, discussed and a structural model for business partnerships presented. Conclusion would be with appropriate policy formulations and collaborative business ventures will help to impel Sri Lankan energy sector to a sustainable development. Key Words: Collaboration, Policy, Wind Energy Sector

Introduction

Development of energy infrastructure in Sri-Lanka would help to reduce the dependence on imported fuel, accomplish economic growth and maintain the quality of the environment. In this context development of wind energy sector is vital to stabilise the future energy mix of the country. The wind resource availability atlas of Sri Lanka indicates the country has considerable wind resources that are still untapped (Elliott, et al, 2003). Lack of supportive energy policies, technological gaps and financial constrains are the key barriers for implementing successful wind energy projects. Consequently Sri Lanka needs to identify technological and institutional barriers for promoting wind energy sector investments and reexamine countrys energy policy. The current national energy policy of Sri Lanka, prepared by Ministry of Power and energy, Sri Lanka in 2006 (Ministry of Power and Energy, 2006). Considered important to future energy mix but not presented any detailed strategies to develop wind energy sector, which is a major drawback in current energy policy of Sri Lanka. The proposed strategic plan for wind energy sector development is based on the concept of international collaboration. The government of Sri Lanka, local industrial sector and international wind energy sector companies have to play different roles in setting up the collaborative venture. The expected involvements from each of the participators are been discussed on this paper. Further this strategic plan should be supported with rationalised wind energy policy elements. Recommendations are propos to develop wind energy policy for Sri Lanka. The research methodology of the study is based on survey data, discussions with national level experts.

Energy Sector Overview- Sri Lanka

Biomass petroleum and hydroelectricity are the three primary energy resources in Sri-Lanka. Production biomass-based energy, in the country for year 2007 was accounted as 47.41% whereas the petroleum 43.04 %, hydro-electricity 09.51% and nonconventional 0.04% (SLSEA, 2007). The total installed capacity of the Sri Lankan power sector is 2683 MW, with hydropower 1345 MW, thermal 1285 MW, wind 3 MW and others including solar12 MW. By year 2020, it is predicted that the countrys economical and social development will increase the energy demand up to 15,000 kTOE at the average of 3% growth rate (Government of Sri Lanka, 2007).

Figure 1: Energy Sector Overview Sri Lanka

Wind power is one of a best renewable energy resource for Sri Lanka. The wind-mapping results for Sri Lanka show many areas, are estimated to have good to excellent wind energy potential. These areas lie in the north-western coastal region, from the Kalpitiya peninsula to Mannar Island, and the Jaffna peninsula and the central highlands (Elliott, et al, 2003).

Figure 2: Wind Energy Resource Mapping- Sri Lanka

This windy land represents about 6% of the total land area (65,600 km2) of Sri Lanka. Using a conservative assumption of 5 MW per km2, this windy land could support more than 20,000 MW of potential installed capacity. The windy lagoon areas are estimated to encompass 700 km2 with a potential installed capacity of 3500 MW (Elliott, et al, 2003). 3

National Energy Policy of Sri Lanka

National energy policy is the document, which declares the Energy Policy of Sri Lanka. This brings out the implementing strategies, specific targets and milestones through which the Government of Sri Lanka and its people would endeavour to develop and manage the energy sector in the coming years (Ministry of Power and Energy, 2006). Institutional responsibilities to implement each policy element and associated strategies to reach the specified targets are also stated in this document.

The National Energy Policy and Strategies of Sri Lanka is elaborated in three sections in this policy document (Ministry of Power and Energy, 2006). Section 1: Energy Policy Elements First section consists of the fundamental principles that guide the development and future direction of Sri Lankas Energy Sector. Following are the nine policy elements present under this section (Ministry of Power and Energy, 2006). 1. 2. 3. 4. 5. 6. 7. 8. 9. Providing Basic Energy Needs Ensuring Energy Security Promoting Energy Efficiency and Conservation Promoting Indigenous Resources Adopting an Appropriate Pricing Policy Enhancing Energy Sector Management Capacity Consumer Protection and Ensuring a Level Playing Field investors Enhancing the Quality of Energy Services Protection from Adverse Environmental Impacts of Energy environmental regulations and standards of Sri Lanka

Facilities

relevant

The analysis of Sri Lankan national energy policy document figure out, that the government of Sri Lanka had consider the importance of diversification of energy resources and identification of future energy mix to ensure energy security in the country. Further as a developing country, Sri Lanka has identified the significant of Indigenous resources to match the future energy demand of the country. Section 2: Implementing Strategies The section 2 presents the implementation of framework to achieve each policy elements. Although the national energy policy specify the important of the future energy mix and Indigenous resources, not any implementation strategies propose to develop wind energy sector in Sri Lanka. Section 3: Specific Targets This section states the national targets, planning and institutional responsibilities to implement the strategies. Small-scale hydropower, biomass including dendro power, biogas and waste, solar power and wind power are identified as non-conventional renewable energy resources. Sri Lankas sustainable energy authority (SLSEA) is form to develop nonconventional energy sector. According to the current SLSEA plan, it has been expect to develop 10% (460MW) of power from non-conventional resources by 2015. However the expected contribution from wind energy sector is low as 85MW, which is 18.4% from total non-conventional resources (SLSEA, 2007). 1

Key Barriers for Sri Lankan Wind Energy Sector Development

Technological and construction Barriers Wind Energy Technology: Lack of workforce and expertise in all aspect of wind energy technology. Electrical Infrastructure: Transmission lines have inadequate capacity to accommodate additional power from large scale wind sites (Young, 2003). Transportation Systems: Limitations of major roads (narrow, under developed, specific weight and dimension margins, etc) (Young, 2003). Limitation of mobile cranes required for installing utility-scale wind equipment.

Financial Barriers

The initial capital cost for wind farm constriction is high and it is ranged from $1.2 million to $2.6 million, per MW of nameplate capacity installed in 2007 (Windustry, 2011). Lack of specific finance mechanism to attract investors to develop wind energy sector. Policy Barriers Although Sri Lankan energy policy has, shown signs of developing renewable energy sector by 2015 to gain 10% of energy, specific targets define have not been setup. Institutional Barriers According to the National energy policy, of Sri Lanka, Sustainable Energy Authority (SLSEA) and Public Utilities Commission of Sri Lanka (PUCSL) is responsible for promoting renewable energy sector to develop activities. The two institutes are operating with more general plan and with no specific implementation strategies to formulate the develop wind energy sector. Lack of close coordination with Ceylon Electricity Board (CEB) to develop electrical transmission system. 1

Strategic Plan for Wind Energy Sector Development

The strategic plan, for wind energy sector expansion must facilitate to overcome key barriers and should be based upon international collaboration. In this context government of Sri Lanka, local industry and international companies have to cooperate.
Feasibility constriction Site selection and initiation identification Wind LocalAnalysis and Site/Approval from Government (Land, Government International farm Development Maintenance central environmental authority, etc) Operation andof necessary infrastructure facility (roads, collaboration Industry Electricity transmission, etc) Support wind energy sector by implementing necessary policy changes.

Figure 3: Strategic plan for wind energy sector development

Role of Government of Sri Lanka The feasibility analysis and site identification is the preliminary stage in wind energy sector development process. Detailed wind resource mapping is important to identify prospective areas of wind energy applications. The wind map for Sri Lanka was created in 2003 and already identified potential areas for wind energy sector development. However, more specific feasibility analysis is essential at each identified area. This information ought to be freely available to local industry to find new sites for developing wind farms. Development of necessary infrastructure facility specially the roads and electrical transmission system. Development of special finding mechanism to support local industry. To implement necessary policy changes to develop wind energy sector in Sri Lanka. Role of Wind Energy Companies/Organizations in Sri-Lanka

 Select suitable site to construct new wind farms. To fund the wind energy project by providing the initial capital in the form of a loan. To cover the cost for the provision of hardware, technical knowledge setting up, implementing and running of the projects. To manage wind energy, projects construction. To ensure the success of the wind energy programs, training must be provide to all individuals in all aspect from management to self-sustaining level. This implies organising training programs on manufacture, assembly, installation financing, maintenance and use of the wind energy systems is also one of a responsibility of local industrial sector. Role of International Collaboration Wind turbine project planning, construction and operation process required proper technology and expertise to choose final wind turbine sites, design mechanical and electrical systems, design civil engineering infrastructure and plan maintenance of the wind farm. International collaboration should help for accurate technology transfer process. Financial constrain is another key barrier for developing wind energy sector in Sri Lanka. International collaboration will bring foreign investments to the country. To provide expertise local industry introducing efficient management skills to negotiate and conclude calls for tenders and contracts with suppliers and plan management of the construction, operation phase and decommissioning. To discuss the successes and failure of the technologies and practices concerning its wind projects, seminars and workshops to be arranged with the partnership of stakeholders through a process of mutual learning, a need to familiarize people in the area with new technologies and practice.

Policy Recommendations
It is important to develop renewable energy policy for Sri Lanka and formulate the policy element for developing biomass, hydro and wind energy sector with appropriate implementation strategies. The following recommendation should consider in developing national wind energy policy for Sri Lanka.

Exploration of geographic distribution of sustainable wind resources availability. Optimisation of wind resources by creating business ventures between local industry and international companies. Promote appreciation of multiple benefits of wind energy, including environmental and economic advantages, to make it as a preferred option by all energy users through education, dissemination of information. Setting up of financing mechanisms for the, investors, developers, local equipment manufacturers. Encourage Research and development and capacity building.

Conclusion

Lack of supportive energy policies, technological gaps and financial constrains are the key barriers for implementing successful wind energy projects in Sri Lanka. Business partnerships between local industry in Sri-Lanaka and wind energy companies in developed countries are bound to produce productive results since international institutions have proven expertise. These collaborative ventures will also bring added investments and financial expertise. The international companies have ISO 9001 and ISO 14000 registrations that help local industries to gain knowledge with regard to successful wind energy project management and quality control.

The government of Sri Lanka should facilitate to develop co-operation between international and local institutions by providing necessary infrastructure facility and making required policy changes. Development of wind energy sector of Sri Lanka offer enormous opportunities for social and economic development. Consequently, it is essential to integrate wind energy technology causes in to regular training curriculum of Sri Lankan education sector. This will facilitate to develop more research and development innovations in the country and required work to drive wind energy sector of Sri Lanka to match future energy demand of the country.

References
D. Elliott, M. Schwartz, G. Scott, S. Haymes, D. Heimiller, R. George,2003, Wind Energy Resource Atlas of Sri Lanka and the Maldives, National Renewable Energy Laboratory Government of Sri Lanka, SLSEA act 35, 2007, [online], http://www.gov.lk/, [Accede] 14/04/2009. Ministry of Power and Energy, Government of Sri Lanka, National Energy Policy Sri Lanka, 2006. Sri Lanka Sustainable Energy Authority (SLSEA), 2007, Sri Lanka Energy Balance and Analysis of Energy Sector Performance. Young and R. Vilhauer, 2003, Sri Lanka Wind Farm Analysis and Site Selection Assistance Renewable Energy Laboratory, U.S.A. Windustry, How much do wind turbine cost, [online], http://www.windustry.org/how-much-dowind-turbines-cost, [Accede] 14/01/2011.