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by Manjula Fernando

A National Policy on Mini Power Projects will be formulated shortly by the Power and Energy Ministry to seek increased private sector participation in power generation.

Power and Energy Minister Karu Jayasuriya said the Ministry is now formulating the policy which would provide added incentives for private sector organisations wishing to embark on power generation projects.

Existing regulations such as procedures for obtaining permits to set up mini power projects will be relaxed and a new Bill will be presented in this regard in Parliament shortly.

The Minister was speaking as the chief guest at a seminar, 'Installation of Mini Hydro Plants for remote villages' coordinated by the Pre-Electrification Unit of the Ceylon Electricity Board under Sri Lanka Energy Services Delivery Project funded by the World Bank and the Global Environment Facility at Sausiripaya recently.

The Minister said global attention has been drawn towards alternative power generation projects to contribute to the mains grid as the consequences of relying on a single means of power supply have been realised recently.

"Therefore, the role of the private sector in mini power projects including the community based rural power projects is gaining momentum. The government has now understood their importance", he said.

He re-emphasised that the Ministry is planning to stop the daily power cuts definitely by June this year. They have already formulated short, mid and long-term proposals to find a sustainable solution to the power crisis in future.

The Ministry has called tenders to set up a 300 MW thermal power plant in Kerawalapitiya. In addition, the Kukule Ganga and Upper Kotmale projects will get off the ground shortly. The Coal Power Plant will be completed under an accelerated project in five years instead of seven and a second feasibility study is now in progress to decide the exact location to set up this plant.

The seminar discussed the problems faced by private sector power generators.

The Energy Services Delivery (ESD) Project Credit Program launched in 1997 is managed by an administrative unit set up within the DFCC bank. The unit works closely with the World Bank and the Government including other stake holders such as project developers, suppliers, consultants, NGOs, industry associations.

By end 2001, a total of 16 private sector mini hydro projects added 26.6 MW to the main grid under the project. Up to March end 2002, 15,276 solar home systems had been installed and off-grid village hydro schemes funded by the project provided electricity to over 1,900 rural households.

Power and Energy Ministry Secretary Prof. K. K. Y. W. Perera, Additional Secretary Michael Warnakulasuriya, ADB Resident Representative John Cooney, Southern Province Energy Minister Danny Hiththetiya and project officials were also present at the seminar.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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