PUCSL NODS FOR THE PPA OF 300 MW KERAWALAPITIYA LNG POWER PLANT

COLOMBO (News 1st): Sri Lanka's power regulator has approved a power purchase agreement for the construction of a 300 Megawatt liquid natural gas (LNG) power plant in Kerawalapitiya. The agreement to purchase power from the plant for 20 years would be signed between the Ceylon Electricity Board (CEB) and Lakdhanavi Pvt Ltd. - a private entity that will carry out the project. "The Public Utilities Commission of Sri Lanka (PUCSL) had recommended 18 amendments to the initial power purchase agreement submitted for approval," Janaka Ratnayake, the PUCSL chairman noted. The CEB will purchase power from the plant at Rs 14.98 a unit. Although diesel and LNG fuels could be used to generate power, initial generation will take place only using diesel fuel, officials said. The state-run electricity body had received approval from the PUCSL for the project on November 15, 2016, and had submitted the power purchase agreement for final approval on October 9, 2020. But the PUCSL found that 18 amendments had not been made to the agreement, in line with its directives, and instructed the CEB to include them to avoid any burden on the consumers and the government. The CEB had amended the agreement and submitted it to the PUCSL for final approval on December 1, 2020. But the members of the power regulatory commission had resigned from their posts at that time. Accordingly, the new members appointed to the PUCSL in early February had granted final approval for the project during their first meeting. “The PUCSL expects that the CEB will expedite the construction of this 300 MW LNG power plant to cater to the country’s electricity demand,” PUCSL chair Ratnayake added.