PUCSL approves CEB’s base case plan for power generation

The Public Utilities Commission of Sri Lanka (PUCSL) has approved the Ceylon Electricity Board’s base case plan subjected to the accommodation of already Cabinet approved “Government to Government power plants” and the “latest Government Policy”.

In a communication to the CEB General Manager, the commission said that it had approved the Least Cost Long Term Generation Expansion Plan (LCLTGEP) 2018- 2037, following an extensive public consultation process on July 19, 2017. 

The Commission said it has requested the Government policy on the fuel mix according to Section 5 of the Sri Lanka Electricity Act, No. 20 of 2009 from the Secretary to the Ministry of Power and Renewable Energy through letters prior to arriving at the decision. 

“However, no response was received by the commission in this regard and the Commission approved the Least Cost Long Term Generation Expansion Plan 2018-2037, based on the least cost principle as per the Section 43 (8) of the Sri Lanka Electricity Act.”

Subsequent to the decision on Least Cost Long Term Generation Expansion Plan 2018-2037, the Cabinet of Ministers has decided its’ new policy on energy mix for electricity generation as communicated to the Commission via letter. 

The said Government policy on electricity generation mix is based on four distinct policy elements;

The Commission approved LCLTGEP 2018-2037 and CEB submitted base case plan both do not fully comply with the aforementioned new Government policy. Hence, the Commission directed the Transmission Licensee to resubmit the plan complying with the latest Government policy in a letter dated May 14, 2018. 

However, subsequently, certain developments had emerged since the Commission had approved Least Cost Long Term Generation Expansion Plan 2018-2037 on 19th July 2017, it said.

Therefore, the Commission said it hereby grants approval for the CEB base case plan subjected to the accommodation of already Cabinet approved “Government to Government power plants” and the “latest Government Policy”.

“Further, the Transmission Licensee is required to negotiate and ensure that the generation plants that would be built under Government to Government basis, meet all the technical and economic parameters under the Grid Code and that they are at the least cost, in terms of Section 43 (6) of the Sri Lanka Electricity Act, No. 20 of 2009.”

Furthermore, the PUCSL directed the CEB to submit the Least Cost Long Term Generation Expansion Plan 2020-2039 on or before April 30, 2019 for Commission approval.