Sri Lanka’s Power Minister says power plants incurring high production costs to be retired
Power and Renewable Energy Minister of Sri Lanka Ravi Karunanayake has reportedly stated that the state owned power utility, the Ceylon Electricity Board (CEB), is set to retire power plants incurring high production costs within the next one and half years.
The Minister has made these observations at the event held to mark the launch of the CEB customer care application.
He has explained that one of the main reasons the CEB is making losses is high production costs incurred in some plants and that the state-owned company should be focusing on least cost generation methods.
“We have to disconnect all the plants that have a high cost of production within one and half years. The Kelanitissa plant cost per unit is Rs. 60 and Uthuru Janani [diesel power plant at Chunnakam] cost of production is Rs. 74. We have to work towards a least cost generation system. When this is discussed politicians are always blamed for not taking straightforward decisions, I accept that. But now you have to join the change,” Karunanayake has been quoted as saying.
The Minister has also said that the CEB has ability to meet demands made by external markets referring to the skills and capacity of the Sri Lankan professionals.
According to Karunanayake, the CEB should aim to secure foreign projects within the next few months and that he will be giving the company three months to meet these expectations.
OSL take:
The statement by Sri Lanka’s Power Minister of retiring power plants that incur high production costs is a clear indication of the expansion in business/investment opportunities in Sri Lanka’s power and energy sector. The country is facing a power crisis and the government of Sri Lanka is engaged in looking for cheap renewable energy solutions to address the country’s power requirement. Therefore, foreign businesses could explore business/investment opportunities in Sri Lanka’s power and energy sector.
| Article Code : | VBS/AT/19062019/Z_9 |