Tuesday, August 23, 2011
Friday, August 19, 2011
“The Government will endeavor to reach a minimum level of 10% of electrical energy supplied to the grid tobe from NRE by a process of facilitation including access to green funding such as CDM. The target year toreach this level of NRE penetration is 2015.”
As environment lovers you and I all like this statement which I have extracted from the government extraordinary gazette that has been published under the Ministry of Power and Energy as National Energy Policy and Strategies of Sri Lanka.
What if we are able to achieve the target of 10% by 2015?
If we analyze the back ground of this scope, since from the beginning, the large hydro power plants were built by the aid of soft loans, which result the lower energy generation costs. These benefits are directly passed on to the consumers so that we were lucky enough to consume electricity for lower price in the region. Just seventeen years ago, in 1995the 95% of electricity generation was contributed by the hydro power plants. Dominance of hydropower changed dramatically from 1996 onwards. This share was rapidly declined and crossed the 50% within just five years causing oil dominated power generation and high electricity tariff in the region.
Since 1997, the ESD project and RERED project have provided concessionary financing to the private sector to develop small power plants. Non-conventional Renewable Energy (NCRE) – based electricity from power plants less than 10 MW, have been priced at avoided cost tariff (ACT). The avoided cost is the cost the utility (CEB) would have incurred had it supplied the power itself or obtained it from another source. The calculation was based on the mix of marginal generators that would reduce their output, when these small power plants provide electricity to the grid. So that, there was no any significant impact on the electricity production costs of CEB because of this new small power plants. But, at that time, these avoided cost prices are dominated by the oil prices because of the oil dominated power generation in Sri Lanka. So that mini hydro power plants were the only viable solution in NCRE generation. Because of this we were unable to see any other types of NCRE plant like Wind, Solar or Bio mass in the country.
After the announcement of new Small Power Purchas Agreements (SPPA)by the new regulatory agency (Sustainable Energy Authority) in 2007, which are in operation since 2008, Sri Lankan has accelerated the development of renewable energy with a high growth rate. As a result of this, we were able to witness the first ever economically feasible wind plants in west coast with total capacity of 30MW. Now the wind power industry has become a profitable industry which is very popular among the inverters. This enthusiasm made another couple of proposed plants in Jaffna peninsula
Now it is obvious that the new tariff is providing significantly high returns to the NCRE investors compared with the ACT, which was on acting till 2008. This new tariff has several pluses from the investor’s point of view. Unlike ACT, these price changes are designed to make all kind of NCRE proposals profitable. It is cost reflective while it changes from technology to technology with three tire tariff structure. Specially, during the first tire, during first eight years, the tariff is very high compared to the ACT. This is to recover the loans and other investor’s capital requirements. So that this will impose an additional burden on the CEB, and most importantly, the society.
That implies, the development of renewable in Sri Lanka is not economically sound from the consumer point of view for near future. Then it is obvious that if we are on the way to achieve the 10% target by 2015, the more burdens will be on consumers. This means, present pricing offered to NCRE should be revised. Or we can just reduce the share of the NCRE and keep moving with fossil fuel such as coal and diesel until Sri Lankan economy becomes more stable. Intention of this article is to open our mind.
Are we on right track?
Friday, July 15, 2011
An Interview with the SLEMA(Sri Lanka Energy Managers Association))
1) What are the main objectives of SLEMA?
Mainly SLEMA is for the promotion of energy conservation and rational use of energy. That is the objective of formation of SLEMA.
2) Is SLEMA a government organization?
Despite the general belief, SLEMA is not a state organization. SLEMA was formed consequent to the first energy audit training course conducted in Sri Lanka by an American firm. The professionals who followed the training course felt the urge to continue the activities of energy auditing and conservation and formed SLEMA. Prof. Mohan Munasinghe is considered to be the father of SLEMA and indeed was the first President of this organization. More than a non-governmental organization, SLEMA operates like a professional body managed by energy professionals who have offered to work voluntarily.
3) The SLEMA has been collaborating with the ECF in conducting organized scientific industrial training courses. What is present state of that?
The Energy Conservation Fund was formed by the government under the Ministry of Power and Energy. It was years after SLEMA was formed and may be as a result of the good work carried out by SLEMA. There onwards SLEMA and ECF had close coordination. Later on ECF evolved in to the Sustainable Energy Authority (SEA) with more statutory power, authority and scope compared to the ECF.
4) Where do the funds come from? Does the Government contribute?
No, the government does not contribute. SLEMA has to generate its own funds. When we organize the training programmes and other activities we resort to sponsorships as a means of raising funds. Majority of the activities are self funded in the sense that we charge fees from the participants. When we have a part sponsorship, we offer programmes at subsidized prices to participants.There are some activities such as the All Island Poster Competition SLEMA conducted among school children to mark its silver jubilee which are conducted using its own funds.
Recently we conducted two Energy Managers Certification training programmes, for the first time in the country. There is one more such training programme to be conducted by SLEMA early next year. That particular programme was organized and executed for SEA. According to the SEA Act and the Energy Policy of Sri Lanka, all large energy consumers are required to employ an Energy Manager. Such energy Managers need to have certain basic qualification to certify their capabilities of managing energy adequately. The training is for that purpose. According to the broad definition, such an energy manager need not be a technical person. In a smaller organization even an accountant may do the role while larger organizations may opt to have a specially appointed Energy Manager. This particular Energy Manager Certification programme was held with assistance from the Japan International Corporation Agency, who funded it to highlight the significance and promote the concept of Energy Manager Certification. The reason why SEA handed the responsibility of conducting the programme over to SLEMA was due to our proven track record. SLEMA had expertise and experience having successfully conducted similar courses in the past. Since its inception, SLEMA has been conducting training programmes regularly. Some examples are the Energy Auditing Training programme, Boiler Operator Training programme and sector specific training programmes for hoteliers, garment industry and tea industry.
5) Are there any programmes that undergraduates can take part in?
Yes, we are thinking about having some programmes targeting the undergraduates. We have been discussing the matter and are planning to take the initiative soon. The task would be easier if there is a counterpart in the University with whom we can coordinate the work. All the people other than a few employees of SLEMA who run SLEMA office – the Project Manager, the Office Manager and the assistant,–are working on a voluntary basis. Therefore undertaking new tasks is not easy. Yet, we have been doing a fare amount of work.
For instance, if EESoc is prepared to organize a lecture or a seminar, of course SLEMA can address the undergraduates. Speaking to the final year and third year students would be the most effective as they are already learning the basic concepts of energy conservation and management. That would facilitate internalization of the concepts of energy management and rational use by the time they enter the industry after graduation. And they would know about the organizations through which they can work towards achieving these important objectives.
6) Perhaps we can form a student wing of SLEMA at the University?
It is a new idea you are coming up with. There are occasions when SLEMA is called upon to carry out tasks such as energy surveys. The undergraduates can participate in such work specially to execute the field work. It is a fact that most of the times SLEMA finds it difficult to undertake work due to lack of sufficient human resources. For example, we have now got the opportunity for the first time to conduct an energy auditing programme in some hotels in Maldives. Despite the fact that we have managed to find a team leader for the work, we are still struggling to engage two other auditors. The field work schedule runs over 10 days and there are difficulties for our members to undertake such work as most of them are working full-time elsewhere. Taking leave for such durations also is not a very viable option though done sometimes.
7) Currently we generate nearly 70% electricity out of thermal plants. The country can save a large amount of foreign exchange by reducing electricity consumption alone. We can’t just stop machines to reduce this consumption. What is your comment on this?
Being a developing country, Sri Lanka has an inevitably escalating electricity demand. In general, every year the demand rises by about 8% to 9% and that has been pretty much the same for the past decade or so. As we prepare to meet the rising demand, wastage of electricity has to be reduced to the maximum possible level. The objective of SLEMA is to instil the significance of energy conservation and rational use of energy in the minds of people. To cater to the high demand we have almost exploited the hydro resources to the fullest potential. There sources like wind power are being harnessed now but for options like solar the technology is still to achieve maturity and commercial viability. As a result of postponing the coal power plants there was a shortfall in capacity to meet the increasing demand. In the face of the problem, the quick solution was the use of petroleum fuel for thermal power generation which obviously was very expensive. All fuel used in thermal generation has to be imported as we do not have deposits in the country. We should have begun the coal based power generation which was the low cost option some decades back. Unfortunately, there were speculations and objections regarding emissions of a coal power plant that was blown up to such a magnitude that the whole idea of coal power generation was abandoned for a long while. What most did not realize was that the selected or forced alternative solution – diesel based thermal generation – also released tons of toxic sulphur and other pollutants to the atmosphere every day. With high quality coal and through employment of mitigation measures, it is possible to generate coal fired electricity in a more environmentally friendly manner. Consequently, with the lion’s share of generation coming from diesel power plants, electricity prices were heavily affected by the escalating world fuel prices.
8) Considering about Sri Lanka, bio energy plays a vital role. What is your point of view?
Nearly half of the energy demand of the country is met through bio fuel mainly in the form of firewood. To speak about the generation of electricity using bio thermal energy– so far that has not been a success story. There have been plants which were expected to be pilot projects that turned out to be failures. Despite many theories on paper, in practice the technology seems to have lost its way in the real world. Once, bio fuel – Dendro – was at one time even argued to be a replacement for coal power.
Some renewable energy is intermittent. For example, it is possible to produce electricity using wind power only when the wind blows. However, the consumer is not ready to have electricity only at times the wind is available. Therefore, a proper mix of electricity generation techniques is important. I am not suggesting that Dendro deserves to be thrown away. It is indigenous and supposed to generate many jobs as well, as Dendro experts claim. Yet, we have to be mindful of the real capabilities and limitations of renewable sources and their effect on the quality and reliability of the electricity supply.
9) For a typical building, it would cost around 75% of energy for the air conditioning. Is this suitable for a country like Sri Lanka?
Well, air conditioning is a requirement for the human comfort in a tropical country like ours. And lack of it is very likely to affect quality and productivity. However, there are many occasions where air conditioning is not used properly, resulting in wastage of electricity. That can and should be avoided. In fact, it should start at the building design stage. The walls of an air-conditioned building should have sufficient heat-insulation to prevent outside heat from coming in. Otherwise the A/C system will have to consume excessive amounts of power to take that heat out. Another good practice is not to have windows on eastern and western sides of a building to avoid direct lateral sunlight. There are newly developed building codes for Sri Lanka that sets proper guidelines to construct energy efficient buildings.
10) SLEMA making annual awards for the energy efficiency. What are those awards and what is the procedure?
Yes. To recognize and encourage energy related projects by the corporate sector and also by energy practitioners in Sri Lanka, SLEMA presents three annual awards.
First is the Prof. Mohan MunasingheAward which is awarded to the best energy conservation project successfully completed by an individual or a group within the previous two years. Prof. Mohan Munasinghe, the president emeritus of SLEMA is sponsoring this award.
The second is the Ceylon Petroleum Corporation Award for an institution (industry, hotel, commercial establishment, etc.)For the best energy conservation project completed within the last two years.
The third is the award for the best energy - related study, which is awarded to an individual or a group who successfully researched and analysed various aspects of the energy sector in the region or in Sri Lanka. The study should contribute to the improvement of knowledge on Energy Supply, Utilization and Management in Sri Lanka. For this award, the research papers already prepared for or published in professional journals are also accepted.
11) In India they use energy efficiency building code known as ECBC (Energy Conservation Building Code). It is currently well known in the South Asian region. What is the regulation you are using here for the SL?
Sri Lanka also has developed its own building codes. Anybody who is interested in can find more details from the Sustainable Energy Authority. There is a booklet that spells out the building codes. Still it is not mandatory and only voluntary at the moment. But it is expected to become mandatory sometime in the future.
12) How can we gain the membership of SLEMA for the interested parties?
People with background in energy efficiency and management can become members of SLEMA. There are several membership categories such as Corporate Member, Associate Member, Institutional Member and Companion. To become a cooperate member, one needs to have undergone a formal training in the area and also should have demonstrated his or her capability in actual situations. To assess that a concise report has to be furnished and also an interview is conducted. More information and the application form you can find on our website www.slema.org.lk. There are a number of activities the members can take part which help them get to know the prominent professionals involved in energy related activities in the country and also their continuous education and professional development.
13) Any message to the society?
On one hand, energy is money. On the other hand, it is directly related to the environment around us. Therefore, energy conservation as well as the rational and sensible use of energy is very important. It will not only reduce you electricity and other fuel bills but also protect the environment as well. Everybody has to be aware of this. The people who are not that much aware about it should be educated. This can be started in the school. The children are the future. When the small ones get to know about these concepts, they will take the message to their parents. They will be strong influencers for the present and also will grow up with such concepts built into their life-styles. Then we can expect a better world.