#1Renewable Energy Policies in Sri Lanka - the needs and potentials for additional international support Asoka Abeygunawardana Adviser to the Hon. Minister of Power and Energy- Sri Lanka Executive Director- Energy Forum#2Sri Lanka - An island in the Indian Ocean Lower middle income country Land area (square km) Population Total Households On grid Commercial entities. - 65,610 - 20 m - 5.3 m - 400,000 On grid Government Institutions - 134,000 On grid Hotels On grid Industries - 546 - 43,000 SRI LANKA Tani Xirgam.c Qingdao o Balan Yokohama Sondal Shimizu Pusa Nagoya Iwakua Tokyo Yokkaichi Kwang Yang Shanghai G Nina::a Feelung Osaka- Moji Kobe Hakata Per capita energy consumption (toe) - 0.478 (lower middle income country average of 1.02 toe) Per capita CO2 emissions (tons/y) - 0.62 (World average - 4.29) Xianetin Yanliang Hong Kong đ Tachung Kachsiung Hochimint angkoke LaET Chalxing Port Klang Johot Singapore Manila SOUTH ATLANTIC OCEAN Cape Town Darbag Port Lou Merak Surabaya Semarang Bantalo Brisbane Sydney Fremantle Melbourne#3Off grid SLSEA Power Sector in Sri Lanka Regulator - PUCSL Independent Power Producers (oil & RE) CEB Transmission CEB Generation GOSL/Ministry CEB CEB CEB CEB LECO Dis 1 Dis 3 Dis 3 Dis 4 Consumers#4Electricity for everybody, everyday 98%< Jafna Jafna 85inochchi Mullaittivu 10 40 Anuradhapura % Mannar % Vaxniya % 68 Trincomalee % 60 % 50 Mannar 70 Vavmiya % 80 % Trincomalee Anuradhapura 75 % 73 Puttalam 90 % Polonnaruwa 85 % Polonnaruwa Puttalam 84tticaloa 95 90 Batticaloa 0 Kurunegala % % % 60 75 95-98% 90-95% 85-90% Jaffa 80-85% 100 Kilinochchi 70-80% % " Mullaittivu 60-70% 100 % 100 50-60% Mannar 40-50% 100 Vavuniya % 100 % 40%> Trincomalee Anuradhapura 100 100 % Polonnaruwa Puttalam 100 % 100 Batticaloa Matale Kurunegala Matale % % 86 84 90 90 % % % 91 94 Kandy Kandy 10 % Ampara 87 71 Gampaha 0% 79 100 Kegalle apara 85 Kepelle 86 % Gampaha % Nuwara Eli Badulla 82 100 -90 % Kurunegala 100 % Matale 100 100° % Kandy 100 100 adulla 0% Nuwara Eliya 93 Colombo % Colombo Moneragge 95 94 Weneragala % Kalutara R90hapura 88 % % 100 % Colomba 100 100 % % Kalutara Ratnapura 100 100 Kegalle ampa % Badulla %Nuwara Eliya, Ratnapura Kalutara 100 $100 % Ampara % Moneragala % % 98 10 100 100 100 96 98 100 % % 0% Hmbantota -%_Hambantota Galle Matara Hambantota Galle Galle Matara Matara End Of Year 2010 End Of Year 2011 End Of Year 2012 '100% electrification by the end of 2012#5Empty#65000 Business as usual Generation Expansion Plan of Sri Lanka Coal - 4000 MW; 85% of the capacity by 2025 4500 4000 % generation 2010 2011 2012 Renewables 52% 37% 33% 3500 Oil 50% 52% Coal 48% 13% 15% 3000 2500 2000 1500 1000 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■Cumulative new Oil Cumulative new Hydro Cumulative Coal MW Oil#7• Renewable Energy policy in Sri Lanka Planning and Strategy Official targets for renewable energy ➤ 2010 - 40% renewables (large hydro) 2016-60% demand increase ➤ 2016 -38% renewables (large hydro+ NCRE-10%) 2020-100% demand increase ➤ Demand side management - 10% ➤ 2020 -43% renewables (large hydro+ NCRE-20%) Statements of intend ➤ Carbon neutral growth by 2020 Start carbon reduction by 2030#8Empty#9FiT in - Sri Lanka ✰ Avoided Generation Cost - early 1990 Generated enthusiasm for mini-hydro power Lack of transparency in calculating the actual avoided cost ➤ Hidden subsidies given to fossil fuel Technology Specific Financial Cost Reflective Tariff - (Flat and 3 - tier) - 2007 Generated enthusiasm for mini-hydro and wind power There was no way to meet the additional cost Above 25 MW - should have government shares Between 10 MW to 25 MW - negotiated price - Private companies Less than 10 MW - First come first serve basis - Private companies#102010- 6.5% 800 Small Renewables (GWh) 700 600 500 400 300 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010#11The state of play of renewable energy policy in Sri Lanka Generation-Based Incentives/Feed-in-Tariffs (FITs) FIT and its basic features: The tariffs and the Special Power Purchase Agreements for projects with a rated generating capacity up to 10 MW are: first come first serve standardized non-negotiable cost-based sources-specific technology-specific either a three-tier tariff or a flat tariff valid for a period of 20 years • extendable by mutual consent#12Flat Tariff in 2011 Technology All inclusive rate for years 1-20 (LKR/kWh) (USD Cts/kWh) Mini-hydro Mini-hydro Local 13.04 11.54 - 13.32 11.79 Wind 19.43 17.19 Wind - Local 19.97 17.67 Biomass (Dendro) 20.70 18.32 Biomass (Agricultural & Industrial Waste) 14.53 12.86 Municipal Waste 22.02 19.49 Waste Heat Recovery 6.64 5.88 Other 20.70 18.32 Ex rate: USD1=LKR 113#1325.00 20.00 15.00 10.00 5.00 FiT in Sri Lanka - Flat tariff All inclusive rate for years 1- 20 (LKR/kWh) 2007 2008 2009 2010 2011 -Mini-hydro -Wind Biomass -Agricultural & Industrial Waste Municipal Waste -Waste Heat Recovery -Wave Energy#14Small renewable energy power plants Biomass Mini Hydro Solar Wind All REPS No MW No MW No MW No MW No MW 3 13 87 189 4 1 4 31 98 234 Commissioned Under Construction 15 74 112 211 10 99 137 384 Valid Provisional Approval 7 81 37 41 1 10 46 142 Total committed at present 25 167 236 441 5 11 14 130 281 759 Wind Farm 1 100 1 100 Solar Farm 1 100 1 100 Total Total - Committed at present 2000 GWh/y - 13% by 2016 Total - with parks - 2430- 16% by 2016 Geo Thermal - PA - 10 MW; Applied - 109 MW Sea Wave - Applied 3 MW#1545.00 40.00 Policy cost - Cost of Energy -Mini hydro Wind 35.00 Biomass dendro Coal 2y 30.00 25.00 20.00 15.00 10.00 5.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 : fuel - 5.09%; O&M -7.64% Escalation due to inflation Escalation due to scarcity of coal resources: 3%#16Estimated Renewable energy potential in Sri Lanka ✔ Hydro Power Potential - 1960 MW @ 40% pf (1290 MW all ready tapped) Dendro Power Potential - 900 MW @ 70% pf; BEASL estimate - 3,000 MW Wind Power Potential - 3000 MW @ 30% pf; NREL estimate 20,000+24,000 MW Solar Power Potential - 4.5 to 6.0 kWh/m2/day @ 16% pf Wave Power Potential - 200 MW @ 65% pf; NARA estimate- 2000 MW) OTEC Potential -Trincomalee Canyon is the one of the world best places Geothermal Potential - 30 MW (GSMB estimate)#17Pump Storage Solution Major Technical issue to be addressed - systems ability absorb fluctuations Potential sites Samanalawewa (Keriketi Oya) Maussakele (Adam's Peak Falls) Randenigala (Halgran Oya) 1000 MW 500 MW 500 MW Kotmale (Maha Oya, Gurugal Oya, Kuda Oya) 900 MW Upper Kotmale (Dambagastalawa, Agra Oya) 600 MW Total 3500 MW 500 MW plant: capital - 360 to 500 million USD - 730-1000 USD/KW Discussions are currently under way.#18International Support • Generation and Transmission expansion planning (Technical & Capacity building) • Concessionary financial support (Financial) . Subsidy reforms (Technical) • FIT for other renewable energy technologies such as Solar PV, Concentrated Solar Thermal (Technical and capacity Building) Study on Wave Power, Geothermal and Ocean Thermal Energy Conversion (OTEC) (Technical & Capacity Building) • Biomass collection, storage and clearing houses (Financial) . Pump Storage (Financial & Technical) • Smart Grid for the Sri Lankan Power System (Financial, Technical & Capacity Building) • Civil Society Strengthening (Capacity Building) for achieving new renewable energy targets#19Empty