Tuesday, September 21, 2010

Sri Lanka to go for nuclear power

Sri Lanka to go for nuclear power 
By Santhush Fernando in Colombo
 Colombo, 21 September, (Asiantribune.com): Sri Lanka is hopeful of having its first nuclear power plant to go online within the next two decades, in a bid to go for lesser-cost power generation plants.
A nuclear power plant in Bangladesh
"Government in its search for lesser-cost fuels, has decided to look into the possibility of tapping nuclear power, and as a result a feasibility study would be conducted soon to see whether we can set up a plant with around 1GW capacity,” Secretary to the Ministry of Power and Energy , M.M.C. Ferdinando, said on Monday (September 20).
However he said that the exact location, precise magnitude and other features will have to be ascertained from the feasibility study, and added while unlike in other power projects, a country had to get green light from the global nuclear watchdog- International Atomic Energy Agency (IAEA) for nuclear power plants.
"But if you were to have a nuclear plant by 2030 you have to start now itself," he cautioned.
According to Ferdinando, with the projects that are in the pipeline, Sri Lanka could cater to the electricity demand until 2017.
In 2009, of the country’s total requirement of 9,882 GWh, nearly 61.7 percent or 5,998 GWh was generated by high-costly thermal power (diesel) while the remaining 39.3 percent or 3,884 GWh was contributed by hydro power. Government is hopeful of reducing country’s reliance on diesel to 25 percent by 2014, and further down to 10 percent by 2017.
“By 2017, nearly 40 percent each of the country’s demand will be contributed by coal and hydro while the remainder would be generated by diesel and renewable energy sources,” he said.
“We need nearly US $ 2bn more investment for generation projects while network upgrade and rural electrification would cost US $ 1 and 4bn respectively,” Ferdinando told the “Sri Lanka Unveiled- Importing Wealth” forum held today (September 20). The forum- one of the top high-profile investor forums to be held up to now, is organised jointly by the Royal Bank of Canada (RBC), Thani Group of UAE, Aimlight, Board of Investment (BoI) of Sri Lanka and Business for Peace Alliance (BPA) will continue until Wednesday (September 22)
The Chinese-funded US $ 1.3bn Norochcholai coal power plant when completed will generate 900MW while country’s second and final coal power project to be constructed- US $ 500 Sampur coal power plant, funded by India, will add 1Gw to the national grid. The US $ 450 Japan-funded Upper Kotmale Hydro power project is expected to generate 150MW upon completion.
A 1,000MW Liquefied Natural Gas (LNG) power plant at Kerawalapitiya and US $ 450mn Uma Oya Hydro Power projects have so far failed to take off the ground.
With Sri Lanka’s supply exceeding demand by 2017, it is hoped that electricity could be sold to energy-hungry India, through the Mannar-TamilNadu under-sea High Voltage Direct Current (HVDC) power link, which is to be finalised next month. (See separate story)
Electricity costs in Sri Lanka were among the highest in the world with all users paying high cost for industrial, commercial and domestic uses while driving away the investors. Average electricity tariff rates to industrial sector is from Rs 7.00 to 7.50 in Sri lanka; Indonesia 1.52 – 3.90; Malaysia 2.63 – 10.52; Singapore 4.32 – 6.78; Thailand 2.89 – 7.01, according to the Central Bank’s Annual Report of 2004.
However over 15 percent of the output goes wasted due to system loss while another 20 percent is wasted due to bad usage practices.
Sri Lanka’s average consumption is 400 kilo Watt hours per person per annum and for the country to elevate itself to that of a middle-income level country like Malaysia, power consumption should be around 2,000 kWh per capita per annum. The drop is said to be short-lived and with the government anticipating 100 percent electrification of the North in two three or years time, the demand is set to be on the rise soon.
- Asian Tribune -

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