Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Chart 1.25 > Composition of Energy Mix100%80%60%34%47%40%20%60%46%6%7%0%2009 2010Hydro Thermal Non Traditional Renewable Energy SourceArrangements have been made to establish a Solar Power Garden inthe Hambantota District with financial assistance from the Japaneseand Korean Governments.Source: Ministry of Power and EnergyThe CEB which has been makinglosses for the past 10 years was ableto record a net profit of Rs. 5 billionin 2010. This is a major relief to thegovernment which had to absorbthe huge losses made by CEB overthe years through budget support.Some strategic decisions takenby the CEB and the capability ofoperating all hydropower plants attheir maximum capacity had led tothis achievement. Maximization ofefficiency of using hydro power plantsand considerable reduction of wastageand illegal use has contributed to theseimprovements.Clean Green EnergyThe "Clean Green Energy" conceptwas another major policy initiative ofthe power sector aiming at producingelectricity using environmental friendlyenergy sources. At present, 7 percentof the total electricity is generated byNon-Conventional Renewable Energy(NCRE) sources such as wind, solar,biomass energy and mini-hydro power.The Government's policy is to increasethis share to 20 percent by 2020. Atpresent, there are 89 NCRE powerprojects with a total installed capacityof 211 MW connected to the nationalgrid. As at the end of 2010, therewere 8 biomass projects (34MW), 82mini-hydro projects (172 MW) and 9wind projects (85 MW) either underconstruction or planning stage whilethe Sustainable Energy Authorityhad issued provisional approvals foranother 331 NCRE projects amountingto a total capacity of 938 MW.The government is also gettingready to engage in nuclear powergeneration if needed in case thecountry has no other options. TheCabinet has appointed a steeringcommittee to undertake a prefeasibilitystudy to consider nuclearpower for Sri Lanka.Energy EfficiencyEnergy efficiency improvement andenergy conservation have receivedsignificant attention in the recentyears. The energy wastages areexpected to reduce by 20 percentin 2020. With the implementationof energy managementprogrammes such as regulatoryinterventions, establishment ofenergy consumption benchmarks,conduction of energy audits, 312GWh of energy has been saved in2010.However, the power sector inSri Lanka needs to urgenty turnits attention to gaining energysecurity, deciding on long-termfuel options, reducing systemlosses, preventing the theft ofelectricity, energy conservation,environmental implications andensuring the sustainability ofenergy resources.49