I NDIA - S RI L ANKA U NDERSEA HVDC T RANSMISSION L INK - - PowerPoint PPT Presentation

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May 31, 2023 231 likes •392 views

P OLICY AND R EGULATORY F RAMEWORK AND E NHANCEMENT OF E LECTRICITY T RADING IN S OUTH A SIA Damitha Kumarasinghe Director General Public Utilities Commission of Sri Lanka 15 January 2016 S RI L ANKA E LECTRICITY I NDUSTRY S TRUCTURE GOSL /

SLIDE 1

POLICY AND REGULATORY FRAMEWORK AND ENHANCEMENT OF ELECTRICITY TRADING IN SOUTH ASIA

Damitha Kumarasinghe

Director General Public Utilities Commission of Sri Lanka 15 January 2016

SLIDE 2

SRI LANKA ELECTRICITY INDUSTRY STRUCTURE

LECO IPP Consumers

GOSL / Cabinet of Ministers

GOSL / Cabinet of Ministers Transmission CEB Generation Minister of Power and Energy Minister of Finance and Planning

Public Utilities Commission of Sri Lanka (Regulator) D1

D2 D3 D4

Corporate

SLIDE 3

SRI LANKA POWER SYSTEM

 Generation Capacity (3,602 MW)

 Large Hydro 1,361 MW  CEB Thermal 1,103 MW  IPP Thermal

771 MW

 NCRE

367 MW (271 MW mini-hydro, 78 MW Wind)

 Peak Demand

– 2,100 MW (excluding NCRE)

 Sales

– 10,500 GWh

 Consumers

– 5.5 Million

 CEB Transmission System 220kV and 132 kV  CEB does 85% of distribution, rest by LECO

SLIDE 4

PUBLIC UTILITIES COMMISSION OF SRI LANKA

 PUCSL established under Act No. 35 of 2002  PUCSL empowered to regulate the electricity industry under

Sri Lanka Electricity Act, No. 20 of 2009

SLIDE 5

PUBLIC UTILITIES COMMISSION IN ELECTRICITY INDUSTRY

 acts as Economic, Technical and Safety Regulator  Advice Government on all matters related to the

Industry

 Exercises Licensing, Inspecting, Standardizing, etc of

f the Industry

 Regulate Tariffs  Efficiency promotion and information dissemination  Has to ensure coordinated, efficient, economical

and uninterrupted supply at all times throughout Sri Lanka

SLIDE 6

LEGAL POSITION

GENERATION

 License required and Government shareholding

required for plants above 25MW

 Generator requirement need to be identified in LT

plan

 Competitive Bidding

TRANSMISSION

 License required; Ceylon Electricity Board (CEB)

by the Act.

DISTRIBUTION

 License Required; four Licenses to CEB and one

for its subsidiary- LECO

 Private companies can get License - require >50%

Gvt ownership

TRADING

 A function of Transmission Licensee – single buyer

SLIDE 7

MARKET RISK

No (minimum) risk

 Single buyer model  Government Guaranteed contracts  Minimum Dispatch Requirements  Fuel supply risk with Government/ CEB

SLIDE 8

OPERATOR VIABILITY AND RIGHTS

 Legally ensured  Required to allow recovery of all reasonable costs of a

Licensee

 Minimum fixed return on Investment as per PPA  Stringent procedure to issue enforcement orders  Revocation of License is difficult- Provide Certainty

 Minister Concurrence  Public Notice

SLIDE 9

AREAS TO IMPROVE IN RELATION TO CROSS BORDER TRADE

 Open access would attract investment- but

require amendments to Law

 Handling Trading and related dispatch in the

event of International Trading

 Private parties that intend to invest in

Generation (>25 MW) will have to have a Government share, this might not be attractive

SLIDE 10