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Effects of FUEL COSTS of National Electric power Supply



A 10 years ago hydroelectricity was the main scale indigenous key energy learning resource available in Sri Lanka, going for a share of nearly 45 percent of the total installed capacity. Hydroelectricity in Sri Lanka has been constantly growing since the release of the nationwide grid itself, but happens to be declining due to the exhaustion of its reference. Currently, ten large hydroelectric electric power stations are in procedure in their optimum. However, it can only suffice to satisfy almost 38 percent of today's national requirement. In such a nature, thermal era bears almost 47 percent. In early days, petroleum power technology was maintained as a substitute mean of creating electricity in an emergency and it was limited. But due to the various circumstances such as easy maintenance and easy procedure, nowadays petroleum era is just about the leading mean of electricity era which on the other hand compensates high amount of expenses.

The twelve-monthly electricity demand rate in Sri Lanka is approximately 8 to ten percent, with the prevailing capacity it likely to be doubled atlanta divorce attorneys a decade to maintain in demanding rate and it is a never ending process. After liberating the North and East regions this demand was increased extensively giving a idea that the need of immediate and economically workable plan. The power crisis has turned into a hot topic nowadays. Professionals and politicians are accusing each other for the turmoil situation. Though certain issues are highly technological, it's important to analyze the info carefully in the proper context to comprehend the true situation. Under this process all financial development mechanism and commercial production costs have increased. Today, almost one third of mankind in Asia haven't any lights at night which also relevant to Sri Lanka, specifically the majority of rural areas, which significantly affect in terms of the attaining the desired interest because almost 90 percent of production is depend on the electricity.

Present energy conservation policies not provides much attention to manage hydropower energy with maximum profitability. Main hydropower plant life reach their maximum level. Despite the fact that, feasibility is left over to increase hydropower era process. Petroleum electricity era has become a chaotic issue anticipated to swift increment of the price rate and increased maintenance. Further coal plantation also cannot appear to work to bargain the demands. It really is more advisable to search in and give a prominence for environmental friendly options and green energy. However, these methods need huge financial resources to buy power generation resources.


The aim of this paper is to critically analyze the impact of the hiking energy price and its own implications to national hydropower supply with feasible proposals as sustainable measures.


The history of Sri Lankan power supply is going back to many generations. In 1927, the department Federal Electrical was founded to undertake the original concerns such as technology, transmission. However, the idea of hydro electricity was initiated as the area of the Gal oya projected in 1950s predicated on as a part of the development plan. The original demand was 20 Mega Watts. This demand was increased annually compromising the development aspirations of the united states. The functions properly governed with the inception of Ceylon Electricity Board in 1969, entrusting tasks such as era, transmitting, and proper circulation where in fact the country was seeking 90 percent of its demand. Nevertheless, in 1970s the extreme demand paved the way to import essential oil as a relying method. That was the first case where the engine oil used as a way to obtain power development. However, the new hydro electric capacity of Mahaveli job reduced the importance of engine oil upbringing the contribution of hydroelectricity.

Though it came out the Mahaveli task as a durable and economical means to fix the immediate increment of the Island electricity demand, it had not been sufficient enough to preserve even although all electric power stations were made their optimum. Recover, at early 90s the need of oil electric power generation inclined again unprecedentedly up to its climax. The following two charts evidently point out the demand against the time as talked about.


Hydro electricity is one of the major potential resources since it generates electricity for a low cost rate which is commensurately valuable. Sri Lankan hydro electricity era has been playing a pivotal role since its inception. Even though these plants make their maximum, scarcity of hydroelectricity is very much phenomenon. In profound, several facts have been identified as main issues in this field.

Early times of grid electricity technology noticed hydro as the major part in electricity era, accounting for more than 90% of the full total generation. Just lately, this part has been reduced to 35 percent due mainly to the exponential fill growth, which cannot be fulfilled by this limited learning resource.

Sri Lanka is acquiring the rain mainly by two means. Those can be mentioned as South West and North east monsoons that are highly fallen right down to the hilly areas where in fact the power stations can be found. But, considering the past 2 decades as per the information of the division of meteorology, the annual rainfalls from these monsoons to the get man areas has been drastic alternated. Some years it was increased and over flew and some years it was almost drought over summer and winter. Because of this prone fluctuation of the rainfall, it eventually determined the low era of hydro electricity.

Though the hydro crops are function their ideal, the efficiency of the machineries e has been reduced due to their old conditions and use of outdated technology which directs to low productivity of electricity.

Transmission and circulation of electricity over long distance is the other reality. This distorts a huge level of electricity anticipated to heavy level of resistance without proper insulation which looses a considerable amount from nationwide grid.

Considering the past feasibility reports, it has been unveiled that the possibility of increasing the reservoirs up for some certain extend in order to increase their capacity which can later substantiate to increase the hydro power era. But, the government is missing behind sufficient amount of cash for such major projects is remaining. Further this is facilitated by improper regulations regulating in electricity industry. These are the main problematic facts govern in this field as impediments.


With the swift acceleration of the demand happened in early on 70s, the Ceylon Electricity Mother board was not in a position to compensate by means of hydro electricity. That was the first occasion where the engine oil used as a source to generate electricity in national level. In 1986, more than 99 percent of the nationwide requirement was satisfied by the hydro electricity. However, In early on 90s, situation was reverted back again to s 1970s within an irreparable manner where in fact the Electricity Board was required to divert massively from hydro electric power into oil technology then the continuous shift was sustained succeeding years.


The power stations are essentially goes on diesel, gas or any other petrol oil. This example has been slowly but continuously uplifting since then. By year 2000 it can be seen the turning point between these variants and after 2001, the fuel or rather thermal power technology took its forefront and staying as the main source than hydro electricity era. As per the present going of this chain, thermal electricity is expected to be spearhead the country's energy technology by 2022.

At the latter stage of 2010 the full total contribution of the gasoline electricity era was more that 50 percent of the total requirement of the country which bears a huge impact in the field of power era as well as the market of Sri Lanka. Pursuing chart clearly illustrates the swift increment of gas power generation against hydro power generation.


Though the gasoline source is a one of a powerful method of producing electricity there are feasible impediments or alternatively key issues have been discovered. Particularly, as a producing country Sri Lanka is going through many pivotal issues in this aspect scheduled to lack of economic, environmental, technical knowledge, and unsustainable plans.


Man discovered olive oil resources more than 150 season ago and much more than 70 percent of debris have been implemented. Then looking at the annual requirement of the entire world it can only just be sustained for another 2-3 ages. In that context, country like Sri Lanka investment of money for such a brief period then would maintain vain. Further, considering the annual costs, it cost massive amount money to import oil. Further in searching of new resources mainly committing for renewable resources also offers bearded a great weight to the current economic climate.

Constant fluctuation of the price of a barrel of crude oil on the globe market is another uncontrollable truth of oil. It have an impact on commensurately to the thermal electric era credited to two reasons. Some may be the expenses in purchasing and second is the selling price of a product. In both aspects it creates a considerable forfeit to the federal government. Comparing to the other countries in the Asia Sri Lankan electricity tariff for a unit is significantly high. It mainly occurred due to the perpetual variation between the thermal from the hydro as suggested by following graph.

Early days and nights the electric supply came through the federal government monopoly. But in present day most thermal power generating firms in Sri Lanka are private companies. That is another grave fault manufactured in the electricity supply was establishing of private ability plants in middle 1990s on negotiated power purchase contracts. Corrupt officials in the then federal government compelled CEB to sign these agreements with immeasurably unfavorable payment schemes. A few of these agreements signed on the same day, for the same technology, have significantly different tariffs which can't be negotiated on any federal. In this context it has been great pressure to the Government also in compromising with these private companies in purchasing the electricity.

Lack of sufficient knowledge to get the maximum utilization of thermal generators is another impediment. Further insufficient knowledge for proper maintenance of these huge generators is another core concern in this subject matter. Environment concern is one of the sub impacts of petroleum consumption. It emits a large number of Gallons of Carbon Dioxide to the air where in fact the environmental pollution is occurred.


Coal electric power provides affordable cheap rate electricity comparative to the other method of productions. Therefore Sri Lanka set up coal vitality stations in 2011. But, so far it has been giving bitter experiences in this field. It had been mainly not setting up timely and lack of supervision of the certified authorities, insufficient foresight in creating as it satisfies with the ocean brand environment and use of out-of-date technology from its initiation.

The above mentioned facts are mainly govern is this petroleum electricity technology field directly or indirectly. Though it coat highly, these facts have penalized the even function of this field which reduce the effective usage of this resource eventually.



Considering these mentioned facts it is plainly indicated that today's electricity cannot be rely on these two creating means. Also nothing of these sources can't be further performed as suit with the near future electricity requirement of the Island. Because at the moment, more that 22 percent of the total population do not have this facility and this daily backpacking demand for electricity is a never ending process. In this particular framework, it is highly vital to search and explore new or renew means to sustain this mechanism.


Increase of the volume of electricity by broadening the feasibility of the reservoirs and crops in an economically benefited mean. Further employing new hydro power producing stations such as Ginganga, Uma oya Brodland will be the probable options. This seems to be a costly and time consuming effort at the initial stage. But in terms of considering the oil purchasing costs in future these can be recognized as profitable steps. Boosting and promoting mini hydro stations in potential areas is another measure in case of getting a profitable sustainability of hydro electricity.

Further it's important to reduce the unwanted distortion in transmitting and distribution. Methods can be implemented such as putting required step down transformers at discovered intervals which permit to transfer a long distance with minimal distortion.

Enhancing new resources is the next aspect of generating ability. Although these options are already used to generate power they have got not utilization in a profitable manner. Solar powered energy, wind power will be the most prominent options open to this Island. However limited opportunities and technological difficulties are regulating to avoid use of such resources in large level. Further expeditions are carrying on for exploring the ability of producing by using sea tides, geothermal energy and crude oil in the Mannar basin. However the facts remaining here are the inability of committing large amount of money and it does not give a timely answer for these issues.


In terms of overcoming the near future challenges few aspects have to be tackled prudently and wisely. The above all fact is to formulate and streamline of workable guidelines by the federal government to ensure the sustainability of the any means of generation but particularly on hydro vitality generation. In this idea it could be applied as:

a. Large size hydro power generation under Administration control.

b. Mini hydro crops under private sector control and development.

c. Revising today's power purchase contract in a reasonable manner.

Uncontrollable but inevitable speedy demand of energy is another challenge where in fact the sound mechanism is vital to monitor, review and implement to guarantee the country huge demand. Reaching the lower, regionally competitive price rate is the next challenge. This is purely due to the fuel mixture in electricity technology occurred in early 1980s.

Upgrade the energy supply quality and service quality like the customer service is the next problem in this sector. Security guarantee methods and quick reaction for just about any breakdown through a proper monitoring system is the essential facets of this.


In today context electricity is can also be categorized among the basic but essential needs of each country. To be able to match the daily requirements in both domestic and professional purposes, electricity takes on a pivotal role. Thermal power technology in fluxed into the field of power generation in in 1970s to defeat the demand as a supplementary source. But at present, it's the leading power creating source in the Island.

Though the hydro ability generation is generated through the means of water which is intended to be renewable natural source of information, many turmoil issues are governing as impediments such as climatic issues, financial issues, technological issues, management issues and insurance policy issues against its enlargement.

Initially the Ceylon Electricity Panel got the monopoly of power. But as to fulfill the excessive demand, it was determined to purchase electricity from private crops which created a issue in complete industry now. Higher rate of tariff, regular hike of the gas price, complex impotence, insufficient coordination between your private and Federal government industries, environmental issues and corruption will be the core issues afflicted to reduce the efficiency and sustainability of this sector. Though it assumed the coal electric power technology as a feasible solution, it was failed at its inception and cannot be seen any consistency on that.

Therefore it is vital to identify and carryout economically benefited remedial measures to beat these issues based on renewable resources, sensible management and new explorations. However, these remedies have been constrained scheduled to financial, technical deficiencies and sick management steps. Further, these issues are resembled as challenges in future.


Considering the foresaid facts pursuing recommendations can be produced as accepted options:

a. It's important to rephrase the current guidelines as it suit to ensure a audio monitoring mechanism and management throughout the field and also to ensure an excellent service of the field both customers and within the industry.

b. As it was previous plans need to be formulated as to maintain the monopoly of most large scale olive oil and hydro power electricity era in Administration sector and small level power vegetation to private sector.

c. It is required to minimize the tariff into competitive rate checking the other countries of the spot. The best example is the South Korea.

d. Steps need to be taken to promote the lasting resources by appealing to the countries that are potential with theoretically and fiscally. Further, positive green sources like wind flow and solar energy have to be uplifted to utilize in a big scale.

e. Hiking of fuel price is a never ending process when consider its scarcity. Therefore it is frivolous to depend on this reference in long term process as a country. Any opportunities or procedures in related to the aspect need to be initiated predicated on that perceptive.

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