Boost for power generation
Sri Lanka has depended far too long on
hydropower to the point where electricity consumers have experienced the
grave consequences of not having additional power on tap.
The drought in 1996 resulted in power cuts that severely affected the
economy. This was an eye opener for the political establishment to
expedite the construction of power projects that did not necessarily
depend on hydropower.
However, many of these projects including Norochcholai and Upper
Kotmale did not go beyond the drawing board as they were mired in
controversy due to protests by political groups, religious
personalities, environmentalists and certain civil society groups. This
state of affairs dragged the country to the verge of another power
crisis.
The Mahinda Rajapaksa administration has taken a bold decision to go
ahead with these projects in the interests of the country.
One cannot please all the people when undertaking projects of this
nature and there is an inevitable social cost in the medium term.
Nevertheless, the country as a whole gains in the end as such
projects are essential for development.
The electricity penetration rate is below 60 per cent - there are
many villagers who have never switched on a bulb - and another power
crisis is looming in a couple of years.
But these projects cost millions of dollars and it is not easy for a
developing country such as Sri Lanka to foot the entire bill. This is
where we need foreign assistance. President Rajapaksa’s State visit to
China has seen an enormous aid commitment for the power projects.
The Chinese Government has expressed its consent to finance major
power projects including the Second and Third Phases of the Norochcholai
coal fired power plant project which will add 600 MW to the National
Grid.
It has already funded the First Phase of Norochcholai through a US$
454 million loan to the Sri Lankan Government. Construction work on the
First Phase has already commenced.
This is indeed good news for the present and future consumers of
electricity in Sri Lanka. With the demand for power from general
consumers, industries and investors growing exponentially, mega power
projects were urgently needed.
Hopefully, part of the Norochcholai projects should be operational by
end 2008, which would help avert a projected power shortage in 2009.
By this time, the Kerawalapitiya multi-fuel combined cycle power
project should also be online, further allaying fears of a power crisis.
Discussions are also underway with Chinese authorities on another power
project in Hambantota.
Such power projects using a variety of sources and fuels including
coal have become a sine quo non since hydropower is not always
dependable due to changing rainfall patterns and sudden dry periods.
Thermal generators are very costly to maintain mainly because of the
very high import cost of hydrocarbons. That picture should change with
the eventual recovery of oil from Lankan waters, but that is several
years away.
The authorities should also explore the possibility of further
popularising solar power.
Although the initial installation cost is high, there are no bills or
maintenance costs. This is a viable option for remote villages which the
national grid infrastructure cannot reach at present.
Talks are also underway with Korean organisations to explore the
possibility of installing wind power farms in Sri Lanka. Both solar and
wind power are renewable sources of energy, unlike fossil fuels which
will eventually run out.
Still, the ideal goal is giving national grid power to all households
in the country at rates far below those charged now. Norochcholai will
bring us one step closer to that cherished aim. |
Re-inventing public enterprises
THE Govt.-owned and managed business entities
known as Public Enterprises have shown a unique development pattern
world-over the last two decades. As a consequence of privatisation
in quantitative terms a declining trend - a reduction of the number
of PEs and their contribution to GDP are evident in some countries.
 Full Story
Aerotropolis - the new airport phenomenon
A new urban economic phenomenon is on the rise
in the airport industry. Popularly called “aerotropolis”, it is an
airport city which has a core and outlying area of aviation oriented
businesses and associated residential developments.
Full Story
The anatomy of an apology
Earlier this week the LTTE used all its skills
to salvage its image from the depths to which it fell with its
attack on the airstrip at Batticaloa where western diplomats, UN aid
officials, and key NGO personnel arrived for discussions on the
resettlement of Internally Displaced Persons in parts of the East.
Full Story |
