Sri Lanka to look at emergency power purchases to avoid power cuts
The government of Sri Lanka is considering the purchase of emergency power from private power producers since the country could face power cuts by March this year.
According to local media reports, the key reasons for the impending power crisis in Sri Lanka is the cancellation of a coal plant under environmentalist pressure and a tender for a 300 MegaWatt diesel plant being challenged in court.
Reports further state that Sri Lanka is moving into the driest month of the year in February and March amidst weather warnings that the island is likely to receive lower than average rainfall in the first quarter.
Sri Lanka’s Power Minister Mahinda Amaraweera has reportedly told the state owned Ceylon Electricity Board (CEB) to use water sparingly as Sri Lanka could face power shortages in by the end of March.
However, data shows that the CEB is already using water sparingly and is maximising thermal power, the local media has reported.
Sri Lanka’s daily energy demand is also high in these months due to above average warm weather, which make customers use air conditioners and fans.
The CEB is however taking all possible steps to avoid power cuts, an official has been quoted as saying.
The CEB is also extending short term power contracts and is in the process of getting 200MW of extra power to avoid cuts in March.
OSL take:
The impending power crisis in Sri Lanka has opened up a business opportunity for foreign businesses engaged in the power and energy sector. Sri Lankan authorities are focused on developing renewable energy generation options in the country as an alternative to costly thermal power and hydro power, which is unreliable due to the long bouts of drought experienced by the country. Foreign businesses could explore business opportunities in Sri Lanka’s power and energy sector.
| Article Code : | VBS/AT/20200117/Z_1 |