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| Wednesday, 10 July 2002 |
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by Ranil Wijayapala The Cabinet of Ministers has approved the establishment of the first coal fired power plant (300 MW) at Clappenberg, Trincomalee with private sector participation, the Power and Energy Ministry announced yesterday. The decision was taken by the Cabinet after careful consideration of the Cabinet paper submitted by Power and Energy Minister Karu Jayasuriya on the urgent need for a coal fired power plant to meet the increasing demand for power. The decision followed the recommendations submitted by the Cabinet Sub Committee on Economic Policy Matters. The Ceylon Electricity Board (CEB) has already commenced a Coal Project Unit to coordinate and expedite all work related to the establishment of the coal power plant as the Government is keen to bring down the cost of electricity to consumers. The decision to build a coal-fired power plant was first taken 15 years ago and a feasibility study for the establishment of 900 MW coal fired power plant in Trincomalee in four stages was completed in 1987. The site for the project shifted to Mawella from Trincomalee in 1988 for the establishment of a 300 MW coal power plant in two stages. It was suspended at the start of the feasibility study. The CEB later moved the site to Norochcholai, Puttalam. The CEB had to abandon this site due to protests by residents and religious dignitaries even after the feasibility study, detailed design and the Environmental Impact Assessment was completed. According to CEB statistics, the average fuel cost per unit of thermal power generation will drop from the present Rs.6.50 to Rs.2.13 by 2010 if the coal power plant becomes operational from the year 2006. The establishment of a coal fired power plant will help reduce the electricity bills in the future. |
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