Annual Report 2008 - Ministry of Finance and Planning

6. A Sectoral Perspective
256
Distribution Development
4,997 rural electrification schemes were completed and
electrified about 82 percent of the total households in the
country under different ongoing projects and programmes.
Rural Electrification project 6 & 7
Gama Neguma
Rajarata Navodaya
“Lighting Sri Lanka” project was continued in order to
improve the transmission and distribution network in
the Hambantota, Moneragala, Kegalle, Ratnapura and
Trincomalee districts
System Losses
Transmission and distribution losses is a key issue in the
sector. At present, system losses as a percentage of net
generation stand at 15 percent. These losses are due to
technical losses such as overheating cables and transformers,
and commercial losses such as unmetered connections
etc. The high cost of generation of electricity presently
prevailing in Sri Lanka, and the consequent value of energy
lost, makeing reduction is a prime concern for immediate
investment. As such, the improvement of identified sections
of the transmission and distribution network, replacing/
upgrading the network, improvement of service quality in
terms of voltage, and upgrading the meters and metering
system have been carried out to reduce technical and
commercial losses to 12 percent of net generation in the
medium term.
Energy Conservation and Renewable Energy Development
The Sustainable Energy Authority (SEA) continued a
number of projects and programmes such as Energy Security
Enhancement Project, Renewable Energy Development
Programme and Energy Efficiency Improvement Programme
in 2008. Approvals were granted to construct 159 new
renewable energy power plants with a capacity of 534 MW
in 2008 and 90 MW was added to the national grid with
these projects.
Investment in Power sector
A total sum of Rs. 17 billion has been invested on the power
development sector in 2008. The total expenditure has
increased from Rs. 4.5 billion in 2006 to Rs. 17 billion in
2008. A major share has been devoted for the development
of power generation sector particularly in 2007 due to the
initiatives taken place in commencing two mega power
generation projects, Norochcholai Coal Power Project and
Upper Kotmale Hydro Power Project.
Total Investment in Electricity: Catalyst for Development
Category 2006 2007 2008 2009 (a) 2010 (a) 2011 (a)
Power Generation 1,506 20,920 10,575 6,693 23,675 1,020
Distribution 2,051 2,737 4,020 4,427 2,850 800
Transmission 928 289 2,212 7,728 2,340 1,550
Total 4,485 23,946 16,807 36,050 28,865 3,370
Source: Department of National Budget
(a)
Estimate
Ministry of Finance and Planning Sri Lanka
Annual Report 2008