CEB acquires 163 MW Sojitz Power Plant
April 6, 2023 05:04 pm
The Ceylon Electricity Board (CEB) has successfully acquired the 163 MW Combined Cycle Power Plant which was operated by Sojitz Kelanitissa (Pvt) Limited.
CEB acquired the power plant on 28 March 2023, after the process was initiated in the latter part of 2022, in accordance with the terms and condition of the Power Purchase Agreement (PPA).
The acquisition process was facilitated with the aim of increasing the capacity of electricity generated, in light of the future power requirements of the country.
Thus, the CEB-owned 163 MW facility will be compatible with LNG following some minor modifications and thereby enables to reduce the current cost of generation when conversion takes place.
Under the GOSL policy framework, CEB signed the PPA with Sojitz Kelanitissa (Pvt)Limited on June, 2000 as an Independent Power Producer (IPP) on BOOT basis.
The contract period was for 20 years and the power plant is located in Colombo Kelanitissa Power Plant complex.
“CEB negotiations were very hard especially due to economic constraints, obstacles, challenges, and many issues including legal aspects; but CEB has managed to overcome those difficulties and finally owned a 163 MW power plant.
CEB appreciates all those government entities who have helped immensely to complete the acquiring process successfully”, the CEB said in a statement issued in this regard.
“Further, CEB appreciates Sojitz Kelanitissa (Pvt) Limited for the operation of the power plant for over 19 years and for the cordial cooperation extended during the negotiation and transfer process of the facility”, it read.
