Small hydro power industry connects 175 MW to national grid

The Small Hydro Power Developers’ Association (SHPDA) announced the connection of 175 MW to Sri Lanka’s national grid; 4.5% of the country’s electricity requirements can now be supplied from this indigenous industry with a saving of a substantial Rs. 10 billion each year from the country’s foreign exchange bill.

Minister of Power and Energy Patali Champika Ranawaka was present at a celebration organised by the association to commemorate this milestone in Sri Lanka’s small hydro power industry.  

President of the Association Anil Makalanda said: “We’re undoubtedly very pleased to connect 175 MW to the national grid. This has been the collective effort of a large number of players, who have at times, faced insurmountable odds. Our total target is to feed 350 MW to the national grid and this could be achieved within the next decade.”

“Sri Lanka’s small hydro power industry has now reached a stage where all so-called good sites have been explored. We’re now left with not-so-lucrative sites with lesser yields. Our wish is also to see the facilitation agency, Sri Lanka Sustainable Energy Authority, and approving authorities such as the Central Environmental Authority and other relevant government and local government institutions play a more active role when it comes to approval process of projects,” he added.

Makalanda went on to say: “The first small hydro power project at Dickoya was commissioned and connected to the national grid in 1996. We have faced and overcome many obstacles over the years and have come a long way since then. This private sector industry, mainly with local middle class investors, in addition to generating power, also makes a laudable contribution to the country’s infrastructure development in the remote areas and provides employment. We are proud that Sri Lankan small hydro expertise has received international acclaim and local developers are now venturing overseas to replicate their success in other countries.”

The Ceylon Electricity Board began promoting electricity generation using Renewable Energy Resources in the early nineties. It assisted the private sector with training and capacity building, pre-feasibility studies and resource assessments.

With international recognition given to renewable energy resources and following the initiative taken by local banks to fund small hydro projects, the World Bank also began supporting the small hydropower sector. The World Bank has hitherto supported 57 grid connected mini hydropower projects amounting to a capacity of 137.366 MW. The support extended by a few local banks to the industry is also commendable.

Makalanda said that the Small Hydro Power Developers’ Association has helped the nation to add 175 MW to the national grid as at end 2010. “This has invariably helped the nation to reduce the high cost of thermal energy generation. This is primarily due to the fact that small hydropower plants operate below the actual cost-to-the-country as compared with oil-fired power plants. It is also the cheapest compared to other forms of renewable energy generation too.”

“We are pleased to note that the World Bank has recognised Sri Lanka’s small hydropower industry as a role model for hydropower development in other countries. This is perhaps the only world class industry Sri Lanka can be proud of,” he added.

Small hydro power projects are run-of-the-river flow type that release water back into the stream, after power generation. This renewable source of energy is one of the most environmentally friendly technologies out of non-conventional renewable energy in the world.

The small hydro power industry also contributes towards regional development in line with the ‘Mahinda Chinthana’.

Rural infrastructure such as roads, bridges, community centres, schools and temples have been constructed or improved in numerous villages. Remote villages in the vicinity invariably gain access to electricity as a result of these projects. Many such communities now enjoy a tangible improvement in their quality of life.

Renewable energy is an integral part in the ‘Mahinda Chinthana’ manifesto and hence the National Energy Policy. Page 44 of President Mahinda Rajapaksa’s manifesto, ‘A Brighter Future,’ states: ‘The contribution to electricity generation from non-conventional renewable energy sources in Sri Lanka will be raised to 20% of the total electricity production by the year 2020.’

“Without any hesitation the association affirms that the main component of the total none-conventional renewable energy that Sri Lanka generates will be from the small hydro industry,” Makalanda concluded.