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Electricity generation in Sri Lanka is primarily run by hydro power and thermal heat, with sources such as photovoltaics and wind power in early stages of deployment. Although potential sites are being identified, other power sources such as geothermal, nuclear, peat, solar thermal and wave power are not used in the power generation process for the national grid.
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Power generation
Electricity in Sri Lanka is generated using three primary sources — thermal power (which includes energy from biomass, coal, and all other fuel-oil sources), hydro power (including small hydro), and other non-conventional renewable energy sources (solar power and wind power):
Hydroelectricity
Hydroelectricity is the oldest and historically the principal source of electricity generation in Sri Lanka, holding a share of 48% of the total available grid capacity in December 2013 and 58% of power generated in 2013. Hydroelectric power generation has been constantly under development since the introduction of the national grid itself, but its market share is declining because suitable new sites are scarce. Currently, ten large hydroelectric power stations are in operation, with the single largest hydroelectric source being the Victoria Dam. Although a large portion of the country's hydroelectric resource are tapped, the government continues to issue small hydro development permits to the private sector, for projects up to a total installed capacity of 10 MW per project.
State-run hydroelectric developments are categorized into three main geographic sectors.
Thermal power
Thermal power stations in Sri Lanka now roughly match the installed hydroelectric generation capacity, with a share of nearly 49% of the available capacity in December 2013 and 40% of power generated in 2013. Thermal power stations in Sri Lanka runs on diesel, other fuel oils, naptha or coal. The Norocholai Coal Power Station, the only coal-fired power station in the country, was commissioned in late 2011, adding a further 300 megawatts of electrical capacity to the grid. It is currently planned to add an additional 600 MW of capacity to Norocholai in the next half decade. The second and final coal power station, the Sampur Coal Power Station, is under consideration in Trincomalee and is expected to be in-service by the end of 2017.
Wind power
The use of wind energy was seen in the country even before 500 BC. The ancient Sinhalese used the monsoon winds to power furnaces as early as 300 BC, making Sri Lanka one of the first countries in the world to use wind power. Evidence of this has been found in Anuradhapura and in other cities.
The development of modern wind farms has been considered by local and international developers for many years. Such developments were largely hampered due to the many obstacles faced in such developments in economics and infrastructure. The first commercial grid-connected wind farm is the 3 MW Hambantota Wind Farm, northwest of Hambantota.
Unlike other power sources, power developments from this source would face many challenges during its development timeline. Poor accessibility to potential sites is the first obstacle in the development of a wind farm. Most key transport routes around the country are too narrow or is constructed with tight turns to support transportation of turbines larger than 600 KW. Constructing wind farms with turbines smaller than the current commercial-scale megawatt-class turbines would prove to be uneconomical due to the high cost incurred during development.
The country is also in a long battle against its poor power grid. The grid, apart from being unstable in most provinces, is only capable of handling a small increases in load, typically limited to a few megawatts. Provinces with poor grids, such as the power grids in the Northern, North Central and North Western provinces needs complete upgrade to support further commercial-scale developments. This factor contributes to a large percentage in development costs for wind farms constructed such locations. The government policy limit of 10 MW per wind project also significantly decreases economies-of-scale, further straining such developments.
Current status
Despite the many technical obstacles, a few developments totaling 50 MW have been proposed till September 2009. In October 2009, cases were filed over political interference connected with the approving of wind projects, leading to a complete halt in the wind power industry in Sri Lanka. The Ministry made allegations of wrongdoing in allocating energy licences, including the structuring of the wind power tariff. There were also allegations that energy licenses are being sold, similar to how car licenses have been sold.
From December 2009 to March 2010, permits for another 50 MW of projects were issued by the Sri Lanka Sustainable Energy Authority, before concerns relating to the issuing of permits were raised again, leading to another deadlock in the industry. As of June 2010, issuing of permits for the development of private wind farms were stopped.
In July 2010, engineers at the Ceylon Electricity Board raised further concerns regarding the approval of private wind projects with extra high tariffs, presumably some of the highest in the world. A review of the wind power tariff was expected to be carried out on 12 September 2010, after an agreed postponement.
Solar power
Grid-connected solar power has only recently been introduced. The only operational commercial-scale solar-powered facility is the Buruthakanda Solar Park of 1.2 MW, operated by the Sri Lanka Sustainable Energy Authority (SLSEA).
Geothermal power
Geothermal power is under research, although no power stations of this type are operational.
Nuclear power
The CEB has included a 600MWe nuclear power plant as an option in its plans for 2031.
Transmission network
The Sri Lankan electric transmission network consists principally of 132kV facilities, with a 220kV backbone connecting major inland hydroelectric generation to the capital region.
India – Sri Lanka grid interconnection
The connection involves the linking of the national grids of India and Sri Lanka via Rameshwaram in south India and Talaimannar in north-west Sri Lanka. The project involves the construction of a HVDC connection between Madurai in southern India and Anuradhapura in central Sri Lanka, through the Palk Strait. The link would measure approximately 285 kilometres (177 mi) in length, including 50 kilometres (31 mi) of submarine cables, and would take more than three years to construct. It would be implemented by the Power Grid Corporation of India Limited and Ceylon Electricity Board.
End-user power tariffs
The monthly end-user electricity tariffs effective from 20 April 2013 are as follows:
Net metering
In July 2010, the Ministry of Power and Energy, with the Lanka Electricity Company and the Ceylon Electricity Board introduced net metering, where consumers could generate their own power from renewable sources and credit excess production back to the power utility. While the power utility will not pay back in monetary values irrespective of how much credit a household generates, it allows the transferring of this credit between households. The first solar power facility intended for net metering was commissioned in July 2010.
Entities exempted for electricity-usage charges
Per Section 21-2 of the Sri Lanka Electricity Act No. 20 of 2009, the Public Utilities Commission of Sri Lanka has granted the following entities exemptions in electricity usage: