Ministry of Power & Energy

Transcription

1 Ministry of Power & Energy

2 Institutional Frame work Power sector overview Renewable energy policy Major issues and barriers

3 Institutional Framework Sustainable Energy Authority The Sri Lanka Sustainable Energy Authority was established on 01 October 2007, enacting the Sri Lanka Sustainable Energy Authority Act No. 35 of 2007 of the Parliament of the Democratic Socialist Republic of Sri Lanka. The SLSEA was established to realise the necessity of having an apex institution to drive Sri Lanka towards a new level of sustainability in energy generation and usage, through increasing indigenous energy and improving energy efficiency within the country.

4 Powers, Duties and Functions Assist the Minister in formulating national energy policy Identify, conserve, inventories and manage all renewable energy resources and technologies Assess resource potential and prepare resource maps Declare energy development areas Render professional services in project formulation Develop a long term renewable energy plan Interim targets for each resource Prepare development guidelines Mobilise financing Grants for pilots, Credit enhancement and concessionary funds Technical services to DNA on CDM projects

5 Project approval process A powerful project approving committee comprising of all stakeholders Formulating guidelines and regulations Entertaining applications Allocating resources Pre and post project monitoring A one stop shop for all approvals Resource maps, inventory, energy development areas and a transparent approval process To reduce gestation period Claim to a resource by developers in public domain Land acquisition where necessary and long leases A robust appeal process

6 Our vision Sri Lanka has become a forerunner in the renewable energy industry Country to tap the maximum possible potential of renewables, gaining from gained capacity A complete resource inventory, an information and data vending centre Networks of agencies for R&D and rural energy services New renewables and new uses for renewables such as biofuels and hydrogen milling Catalyse the growth of renewable related industry Consulting (professional services as an export industry) Local manufacture of conversion equipment

7 Power Sector Overview Population: million Electrification Rate: 89% Population Connected to Grid: 87% Energy Stakeholders: Ceylon Electricity Board and Private Power Producers Installed Capacity 2807 MW Hydro Thermal NCRE Generation 1,205 MW 1,379 MW 233 MW Hydro 40% Thermal 60% Electrification Level 89% Grid Connected 87% Off-Grid 02%

8 Energy Crisis The Issue The Oil Peak Energy Crisis - Man has discovered fossil fuel about 150 yrs ago - More than half of the reserves have been already used 8

9 Energy Crisis The Solutions 1. Energy Conservation and Improving Energy Efficiency (Advanced Technologies) 2. Developing Renewable Energy (Cleaner Fuels) 3. Practicing Energy Modesty (Change in Life Style) The Role of SLSEA Drive the Nation to shift from Oil Economy to Green Economy

10 Petroleum 43% Hydro 10% Non - Conventional 0.1% Biomass 47% 10

11 Commercial 23% Street Lighting 2% Domestic 39% Industrial 36% Religious 0.1%

12 Hydro and Non conventional 42% Thermal 58%

13 Water pumping 0.32% Lighting 15.97% Lifts 2.17% Office Equipments & Others 4% Air Conditioning 77.54%

14 Power Generation Total Power Generation: 10,714 GWh in 2010 Power Generation Mix Gross Generation (GWh) Hydro Thermal Wind small hydro Energy Demand by Sector Domestic Religious Industrial Commercial Street Lighting % 1.59% 40.18% % 0.61%

15 Renewable Energy RE Policy highlights: The Government has set clear policy targets to develop NCRE resources. The Government envisions increasing the share of NCRE by 10% in grid electricity by 2016 and further increasing the target to 20% by 2020.

16 Electricity Cost: Subsidies and Incentives Fossil Fuel Subsidies Furnace oil for power generation is given to CEB with a subsidy of about 0.18 US$/liter The fossil fuel subsidy then becomes 0.04 US$/kWh RE Subsidies Cost reflective tariff, which is higher than the average selling price Average selling price = US$/kWhr Additional cost of RE is passed to the customers

17 Electricity Cost: Subsidies and Incentives RE Subsidies RE Source Base Rate ($/kwh) Subsidy ($/kwh) Wind Solar Biomass (Dendro) Biomass (Residues) MSW Mini Hydro Waste Heat Other

18 Policy Initiatives Cost-reflective, Technology-specific Feeding Tariff Two options: Three-tier tariff: Year 1-8, Year 9-15 and Year 16+ Flat tariff for 20 years Promotion of local manufacture / value addition Net metering 18

19 Tariff 19

20 Tariff 20

21 NCRE TARGETS Year Installed Capacity (MW) Biomass Hydro Wind Solar Total

22 NCRE STATUS 233 MW, 7% Grid-electricity generation Technology / Status Biomass Hydro Wind Solar Total No. MW No. MW No. MW No. MW No. MW Commissioned Under Construction Provisional Approvals

23 RENEWABLE ENERGY SOURCES Biomass Thermal Electricity Hydro Large & Mini Micro & Pico Already being harnessed Solar Grid connected / Net Metering Off-grid Wind Large, Medium & Small On-shore and Inland Off-shore Sea Wave Yet to be harnessed Geothermal Ocean thermal 23

24 Wind Resource Potential Country Wind Potential: NREL Study

25 Wind Resource Potential Country Wind Potential: Measurements by SEA

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27 Solar Solar Our own 737kW + 500kW projects in operation Japanese and Korean grant funded Large Scale development through a 100MW park Many competitors trying different options Few large plants being promoted Constraints Prices have not come down as promised No local industry to benefit from large scale manufacturing Solar thermal technologies may require many decades to reach Sri Lanka

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31 Ongoing Activities A 100MW wind park - Mannar A 100MW solar park - Hambantota

32 Major Issues and Barriers Capacity / Grid limitation is one of the main barriers for further development of wind power Sri Lanka s load profile features a deep off-peak valley and a very sharp evening peak. Operation of wind plants in high wind seasons (coinciding with the high hydro season) during off-peak hours has severely restricted future development. At present, power purchase agreements feature a forced shut down period during off-peak periods. Finding suitable development land is becoming very difficult. Lack of transmission capacity in windy locations also constraint wind development. Central highlands are inaccessible for wind development.

33 0:30 1:30 2:30 3:30 4:30 5:30 6:30 7:30 8:30 9:30 10:30 11:30 12:30 13:30 14:30 15:30 16:30 17:30 18:30 19:30 20:30 21:30 22:30 23:30 Demand MW 2,000 Daily Load Profile 2011 May 2055 MW 1,800 1,600 1,400 1,200 1, Valley filling more scope for renewables Coal Power as Base Load from End 2010 embedded generation MW MW MW MW MW MW Time of Day Hours

34 Cont.. Solar Energy is available only during day time Storage solutions far too expensive Exceeding transmission capacities, due to high variability of nonstorage technologies Grid Sub Station capacities limited to 30MW Dedicated infrastructure to add further to cost Lack of long term accurate solar data base. Long term measuring programme not in place Only one station measuring direct and diffused radiation

35 Next Steps Future development of wind and solar power A very attractive tariff of around US$ Cts.20/kWh is on offer. Sri Lanka has become a crowded market place for wind and solar energy development Future projects will be on a larger scale, targeting public private partnerships as the basis for investment.

36 THANK YOU