PUCSL rejects CEB's base case plan for power generation

The Public Utilities Commission of Sri Lanka (PUCSL) has not granted full approval to an interim power generation plan submitted by the Ceylon Electricity Board (CEB).

The power regulator in a letter to the CEB on 4 August said it is of the view that the Transmission Licensee (CEB) has not demonstrated the consideration of factors required to justify the plan and only the base case scenario was given without justification or data and the Least Cost scenario is not visible.

The PUSCL last month in a letter to the General Manager of CEB, M C Wickramasekara requested the CEB to resubmit the Least Cost Long Term Generation Expansion Plan (LCLTGEP) for 2015-2034 with necessary amendments, including solutions to meet the energy and capacity demand during 2016- 2021 before August 01, 2016.

According to the PUCSL, in order to justify the LCLTGEP 2015-2034, the CEB was required to demonstrate the Demand forecasting methodologies, DSM & related investment program, Absorbing more electricity from readily available Renewable Energy Sources, a scenario on locally available or imported Natural Gas fired plants as an alternative to coal fired plants, considering environmental concerns and fuel diversity, Updating/ internalising the environmental, health and other externalities in the plan with latest available figures, Transmission system development cost minimisation and an alternative in the event of delay of the Sampur Coal Plant.

"Further, the submitted plan is for the period 2017-2036 and it was not the plan referred to in Commission decision conveyed under letter ref no. PUC/Ll/TL/2015/14 dated December 18, 2015. Moreover, the Transmission Licensee has subjected the plan to the Government Policy, on which a policy directive is awaited from the Government," the PUCSL informed the CEB.

The Commission informed the CEB that as per section 05 (2)(b) of Sri Lanka Electricity Act and Conditions 34 of Transmission License, the Commission is not in a position to approve the plan in full due to the following reasons.

Data is not provided for evaluation

Only the base case is submitted and the Least Cost scenario is not visible

Has not demonstrated that due consideration is given to the areas mentioned in Commission's letter Ref. PUC/Ll/TL/201S/14 dated December 18, 2015.

No justification is provided for submitting a new plan (2017-2036) instead of the plan for the period 2015-2034 on which the Commission's directive was issued and the stakeholder consultation has already been carried out by the Commission.

The submitted plan is subjected to Government Policy Guidelines, on which a policy directive is awaited.

However, considering the gravity of the power situation in the 2017-2020 period, the Commission said it would consider power plants identified for the period 2017-2020 in the LCLTGEP as an alternative to the delay of the Sampur Coal Power Plant as a part of the LCLTGEP 2015-2034.

The PUCSL granted approval to the CEB to proceed with the procurement of power plants identified for the period 2017-2020 in the submissions made as part of the LCLTGEP and stated that any such procurement is to be carried out in compliance with the provisions of the SL Electricity Act.

The CEB is required to submit either the LCLTGEP 2015-2034 in line with the guidelines issued by the Commission or the entire 2017-2036 LCLTGEP with justifications for skipping the LCLTGEP 2015-2034 by September 01, 2016.

The Commission further informed the CEB that 2017-2036 LCLTGEP shall go through the approval process adopted by the Commission which includes stake holder consultation.