Govt. to purchase 100 Mw to avoid power cuts

The Government this week decided to purchase 100 Mw on a short-term basis to avoid possible power cuts due to power shortages brought on by the two-year-long drought. 

The Power and Renewable Energy Ministry is to call for international bids to select power generators to purchase the 100 Mw for a period of six months from October. 

In a statement Power and Renewable Energy Minister Ranjith Siyambalapitiya insisted that the Government was forced to resort to emergency purchasing in this manner due to the prevailing drought conditions affecting the hydroelectric generation capacity of the country. 

“The 100 Mw is being purchased through international competitive bidding to ensure continuous power supply for consumers” he said. 

Further, Siyambalapitiya stated that the unit cost of some gas turbines used for power generation by the CEB during peak hours from 6.30 p.m. to 10.30 p.m. was higher than the unit price paid for the 60 Mw purchased.

Further, he stressed that despite Government regulations to allow the purchasing of power without competitive bidding for emergency purchases, the ministry decided to follow the tender process to ensure transparency. 

Earlier during the year, 60 Mw was purchased through open competitive bidding. According to the Minister, the unit price at which the power was purchased was lower than the prices the CEB has paid for previous purchases.