News
Plans for two new coal power plants by changing the law
The Government is planning to remove a vital clause in the Electricity Act which requires the declaration of the lowest cost on long term generation plans in a bid to go through two controversial coal power plant projects.
Any exclusion of a declaration of the lowest cost could impact on the cost of the project and have a knock-on effect on the unit price of electricity.
The plan to amend the Electricity Act has been made on the grounds that the law as it stands today is an impediment to go ahead with the proposed power projects and comes after the Cabinet agreed to go ahead with extensions to the Chinese-built Norochcholai coal-fired plant and to build a new plant in Trincomalee or another location.
Under the existing law, new generation plants or an expansion of the generating capacity of an existing plant will need to be duly approved by the Public Utilities Commission (PUC) on the basis of the Least-Cost Long-Term Generation Expansion Plan.
The Sunday Times learns that the issue of delays in implementing additional power projects had been raised at the Cabinet. Lobbies were at work promoting the additional coal power plants while sections of the Ceylon Electricity Board (CEB) engineers are opposing these moves for varying reasons.
The Power and Energy Ministry hopes to instal the 300 Mw extension to the Chinese built coal power plant in Norochcholai by the end of this year. The second coal power project will be of similar capacity.
Power and Energy Minister Mahinda Amaraweera said the Government would obtain two different environmental impact assessment reports for the projects which would be operated with ‘refine coal’. He said precautions would be taken to protect the environment.