Cabinet Approval obtained for the 300 MW Coal Power plant in Sri Lanka
The Cabinet approved the expansion of the Norochcholai plant to add another 300 MW coal-fired power station to the current facility with sanctions for seeking a new loan from China following a request from the Power and Energy Minister. Despite a global trend to shift away from coal and a national policy to concentrate on the method of generating the least cost, approval has been received.
The Minister told the Cabinet that although the construction of a coal-fired power plant usually takes on average five to seven years for the procedures required to obtain feasibility studies, environmental impact assessments and other building permits, this project could be completed within two to three years.
The paper also suggests inviting China Machinery Engineering Corporation (CMEC) to construct the plant as an extension to the existing Engineering Procurement and Construction (EPC) power plant, taking into account the fact that China Machinery Engineering Corporation has constructed the existing power plant on the nomination of the Government of China.
The paper also suggests securing a loan on preferential loan rates from Exim Bank of China to cover the cost of the plant, completed in three phases. However, the Minister has informed the Cabinet that the plant’s feasibility study has already begun by the CMEC.
The Ministry of Power and Energy reported that from 2018- 2037, Sri Lanka plans to add 842 MW of Hydro, 215 MW of Mini Hydro, 1,389 MW of solar, 1,205 MW of wind, 85 MW of biomass, 425 MW of oil-based power, 1,500 MW of natural gas and 2,700 MW of coal power into the electricity generation system. The annual total electricity demand is about 14,150 GWh. The yearly demand for electricity is expected to increase by 6 to 8 per cent, a number constrained by high prices.
OSL Take:
The looming power crisis in Sri Lanka has pushed authorities to explore renewable energy generation options. Business/investment opportunities continue to expand in Sri Lanka’s power and energy sector.
| Article Code : | VBS/AT/15102019/Z_T2 |