• Wed. Jul 24th, 2024

Mannar Wind Power Project is Transparent and Regulated – Reports

Source- BOI

Process, regulatory and new technology and knowledge about Renewable Energy has created mixed emotions for a project which will benefit all of Sri Lanka, and its typical for change in any development project – Renewable Energy Experts say

Below are a timeline of due processes followed on this Government to Government project.

Regulatory Compliance and Due Process

  • Government-to-Government Mechanism: The project complies with Sri Lanka’s Electricity Act, which allows proposals under the G-2-G mechanism.
  • Request for Proposal (RFP) Process: The laid down process being followed for ages is government floats an RFP (Request for Proposal) and developers respond against it. As per procurement guidelines, any tender needs to go through the same process of Technical Evaluation by Project Committee of CEB & thereafter tariff negotiation by Cabinet Appointed Negotiation Committee (CANC). This was followed for our project.
  • Regulatory Approval: The Public Utilities Commission of Sri Lanka (PUCSL) has approved the project, further affirming its adherence to all regulatory standards.

Competitive Tariff Rates

The tariff negotiated for Adani’s wind power project is highly competitive, as illustrated in the table below:

Flat Tariff in USC Cents/kWhFlat tariff in LKR/kWh *Source
CEB Thermal oil26.9980.98CEB & PUCSL
Variable Tariff (Wind13.9941.97MOP tweet
CEB Thermal12.5257.56CEB & PUCSL
Feed-in-Tariff (Wind)11.1533.44CEB & MOP Tweet
Pvt Power Producers @ Mannar (Wind)11.1233.35CEB LoI
CEB Mannar (Wind) – 103.5 MW9.6729.01CEB & PUCSL
Adani Wind – Mannar & Pooneryn8.2624.78Power minister tweet

* Exchange considered @ 300LKR = 1 USD

Adani’s project, with a tariff of 24.78 LKR per unit, is notably lower than the tariffs of other renewable energy projects recently approved, and significantly cheaper than fossil fuel-based power generation.

Economic and Environmental Benefits

  1. Foreign Direct Investment: The project brings in 100% FDI worth US$ 1,029 million (approximately LKR 308.7 billion), broken down as follows:
    • Wind plants: US$ 741 million (approximately LKR 222.3 billion)
    • Transmission infrastructure: US$ 288 million (approximately LKR 86.4 billion)
  2. Employment Generation: The project will create over 1,200 jobs, providing a significant boost to the local economy.
  3. Green Energy Production: Generating about 1,500 million units of green power annually, the project will meet the energy needs of 590,000 households and help Sri Lanka achieve its Renewable Energy Target of 70% by 2030. This green energy production will avoid 1.06 million tons of CO2 emissions annually, offering an economic benefit of up to US$ 100 million per year.
  4. Cost Reduction and Consumer Benefits: Targeted for completion by 2025, the project will reduce the government’s electricity purchase costs by approximately US$ 83 million per year (about LKR 25 billion), leading to a reduction in consumer electricity tariffs by 17 LKR per unit.
  5. Lowest Wind Tariff: Adani’s wind power tariff of 24.78 LKR per unit is the lowest in the country, cheaper than the CEB’s 100 MW Wind power plant at Thambapavani and significantly lower than oil-based power at 80 LKR per unit.
  6. Foreign Exchange Savings: By replacing higher-cost, import-dependent fossil fuel power, Adani’s project will save Sri Lanka over US$ 270 million annually in foreign exchange, potentially up to US$ 5.4 billion over the project’s lifetime.

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