{"id":99183,"date":"2020-02-22T04:05:18","date_gmt":"2020-02-22T11:05:18","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=99183"},"modified":"2020-02-22T04:05:18","modified_gmt":"2020-02-22T11:05:18","slug":"solar-and-wind-power-can-resolve-electricity-crisis-early-and-cheaper-if-allowed","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2020\/02\/22\/solar-and-wind-power-can-resolve-electricity-crisis-early-and-cheaper-if-allowed\/","title":{"rendered":"Solar and wind power can resolve electricity crisis, early and cheaper, if allowed"},"content":{"rendered":"

Tudor\u00a0Wijenayake<\/em><\/span><\/h2>\n\n\n
\"\"<\/figure>\n\n\n\n

Concerns of pollution worldwide have\nled to an interest in renewable energy, mostly supplied from wind and solar power,\ndelivering increasing quantities of electricity. The developments started on a\nsmall scale prior to 2010 have reached substantial proportions and are expected\nto meet the entire world\u2019s power demand by 2050<\/p>\n\n\n\n

The\ncountry is facing the worst power situation in the history, with electricity\ngeneration being unable to meet the demand, with generation costs among the\nmost expensive in the world. With the current scenario, the country cannot be\nexpected to come out of the mess for another five years.<\/p>\n\n\n\n

A\ncouple of weeks ago, the Cabinet of Ministers accepted installation of two 300\nMW coal power plants and another 300 MW natural gas powered plant. Also few\ndays ago the Cabinet approved emergency power purchase of 100 MW for six months\nand another 128 MW for a year.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Meanwhile,\nconcerns of pollution worldwide have led to an interest in renewable energy,\nmostly supplied from wind and solar power, delivering increasing quantities of\nelectricity. The developments started on a small scale prior to 2010 have\nreached substantial proportions and are expected to meet the entire world\u2019s\npower demand by 2050.<\/p>\n\n\n\n

According\nto International Energy Agency\u2019s (IEA) Renewables 2017 report, sharp cost\nreductions and improved policy support are paving the way for continued growth\nin the renewable sector. According to IEA\u2019s forecast, renewable energy capacity\nwill account for over 40% usage by 2022 led by China, Germany, US and India.<\/p>\n\n\n\n

China<\/p>\n\n\n\n

China,\nthe world\u2019s biggest polluter, promised at the \u20182015 Paris Climate Accord\u2019 to\npeak its pollution levels by 2030. However it achieved the target 12 years\nearly, by moving into renewables.<\/p>\n\n\n\n

The\nChinese Government targets increase non-fossil fuels from current 11% to 20% of\ntotal energy by 2030. China is the world\u2019s largest manufacturer and the user of\nsolar panel technology, producing over 60% of the world\u2019s solar panels. But\nsome manufacturing plants are really owned by US companies.<\/p>\n\n\n\n

Germany<\/p>\n\n\n\n

By\nend 2018, German renewables overtook coal as the country\u2019s main source of\nenergy, with 40% of electricity coming from green sources. In 2018 wind power,\nboth onshore and offshore, produced 24.6% of total power. In addition solar\npanels produced 9%, biomass 8.5% and hydropower 3.8% of market share.\nAdditionally Germany is steadily shutting down coal plants and its final\nnuclear power plant is scheduled for decommissioning in 2022.<\/p>\n\n\n\n

United States<\/p>\n\n\n\n

During\nthe first eight months of 2019, renewable energy sources (biomass, geothermal,\nhydropower, solar and wind) accounted for 18.5% of electrical generation. Wind\npower surpassed hydro-power as the largest source of renewable electricity in\n2019. Meanwhile, electricity from nuclear declined by 0.6% while coal plummeted\nby 13.9%. However, much of the latter was replaced by natural gas which grew by\n6.5%.<\/p>\n\n\n\n

India<\/p>\n\n\n\n

India,\na major producer and user of coal, was shocked when a Rajasthan solar company\ngenerated electricity at guaranteed wholesale price of INR2.44 per kWhr or, or\n3 US cents (Rs.5.40) since 2017, changing the entire power climate. As part of\nits Paris Agreement commitment, India is to achieve 175 GW of renewable energy\ncapacity by 2022. These include 100 GW of solar and 60 GW of wind power. As of\nDecember 2019 Indian wind power capacity was 37.5 GW, the fourth largest wind\npower capacity in the world.<\/p>\n\n\n\n

Maldives<\/p>\n\n\n\n

Meanwhile,\nour small neighbour Maldives has issued a tender inviting bidders to install 21\nMW solar systems in six major islands, with bids closing on 12 March 2020. The\nproject established with financial and technical support from World Bank\u2019s \u2018Accelerating\nRenewable Energy Integration and Sustainable Energy\u2019 project.<\/p>\n\n\n\n

Wind power<\/p>\n\n\n\n

Denmark\nhad windmills for generations and electricity generating wind turbines emerged\nin the 1890s. The 1973 oil crisis triggered major investments in Denmark and\nthe United States on research into power generation through alternate\nsources. <\/p>\n\n\n\n

In\n2015 wind power constituted 15.6% of all installed power capacity in the\nEuropean Union. China is rapidly expanding its wind installations since early\n2000 and passed the US in 2010 to become the world leader.<\/p>\n\n\n\n

Wind passing over Strait of Mannar<\/p>\n\n\n\n

A\nstrong stream of wind passes through the Strait of Mannar. The Indian\nGovernment\u2019s usage of resource resulted in the State of Tamil Nadu installing\nsix wind power projects, becoming the wind power leader in India producing\n7,450 MW. Of these Muppandal Wind Farm in the Kanyakumari District, Tamil Nadu\nlocated at the southern tip of India is the largest wind farm in India, 1,500\nMW capacity, one of the world\u2019s largest wind farms. The wind farm spread over\nvillages shows the ability of wind farms for peaceful co-existence with\nvillagers.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The southern tip of\nTamil Nadu in latitude reaches nearly 25 km south of Anuradhapura. The wind\nmoving from south to north and vice versa is forced between central mountains\nof Sri Lanka and the Indian mountain range separating Tamil Nadu and Kerala\ngenerating high speed winds through Strait of Mannar.<\/p>\n\n\n\n

Sri\nLanka located at the opposite edge of Strait of Mannar too is bestowed with\nsimilar winds along the parallel strip as Kalpitiya, Mannar and Jaffna, but so\nfar failed to utilise the assert. In addition, Hambantota in the south and\nmountainous regions as Ambewela too are blessed with heavy winds needing\nutilisation. Currently long planned CEB\u2019s 100 MW plant in Mannar is dragging\non.<\/p>\n\n\n\n

Solar power<\/p>\n\n\n\n

Solar\npanel is a recent development first evolved in 1988. By 2012 solar efficiencies\nexceeded 20%, and the researchers claim maximum efficiency of photovoltaics\nwould be slightly over of 40%. Over the last five years up to 2018, world\u2019s\nsolar energy capacity increased by approximately 60%.<\/p>\n\n\n\n

Price drop of auctioned renewables<\/p>\n\n\n\n

According\nto International Renewable Energy Agency\u2019s \u2018Renewable Energy Auctions,\u2019 the\nprice of wind energy in auctions from 2010 to 2018 dropped from 80 to 55 $\/mWh.\nHowever, solar energy prices dropped from $240 to 60 over the same period. But\nfrom 2016 the drop has been minor, showing the maturity reached by the two\nsectors. Currently, wind and solar have reached prices close to each other.<\/p>\n\n\n\n

800 MW solar plant in Qatar<\/p>\n\n\n\n

In\nJanuary 2020 French oil major Total and Japanese conglomerate Marubeni won the\nrights to build Qatar\u2019s 800 MW solar project costing US$467 million from 16\ntenderers. Qatari national power firm Kahramaa signed the 25-year power\npurchase agreement at $ 0.016\/kWh (Rs.2.88), the lowest-ever winning bid for\nlarge scale renewable energy. First 350 MW section will be operational next\nyear with the full project scheduled for completion in 2022.<\/p>\n\n\n\n

In\nNovember 2019, Dubai\u2019s 900 MW phase of the Mohammed bin Rashid Al Maktoum Solar\nPark tender was won by ACWA Power with a record low bid of US$0.017\/kWh.<\/p>\n\n\n\n

Shuaa\nEnergy 1,200 MW solar plant in UAE was awarded in July 2015 at the then world\u2019s\nlowest tariff for PV for US$5.6 cents\/kWh to a consortium of ACWA Power and TSK\nElectronica Electricidad S.A.<\/p>\n\n\n\n

Above\nshows that the equivalent of Rs.2.88 in January 2020 for solar power in the\nMiddle East was not a fluke but a result of continuous improvement of solar\ntechnology.<\/p>\n\n\n\n

Sri Lanka\u2019s involvement with renewable\nenergy<\/p>\n\n\n\n

During\nthe 2010 early period, country tasted renewable energy in a minor scale. In\n2010 Sri Lanka Sustainable Energy Authority (SLSEA) gave approval for wind\npower projects resulting 15 wind power plants by 2014 producing 127 MW,\nconstructed by six companies, 10 exceeding 10 MW. Of them Hayleys installed two\nprojects totalling 30 MW. But no further wind power plants were allowed,\nclaiming corruption.<\/p>\n\n\n\n

In\nNovember 2019, CEB called request for proposals for the establishment of 1 to 10\nMW wind power plants totalling 60 MW on BOT basis bids closing on 20 February,\noverlooking that existing privately owned wind power plants were mostly over 10\nMW.<\/p>\n\n\n\n

Rooftop solar<\/p>\n\n\n\n

SLSEA\nintroduced rooftop small solar power units in 2010 which became a success\nleading to Surya Bala Sangramaya or the battle for solar energy in 2016. The\nprogramme targeted 200 MW of power to national grid by 2020 and 1,000 MW by\n2025. <\/p>\n\n\n\n

Currently\n20,000 solar systems supply 215 MW to national grid. The system was revised in\nAugust 2019 as rooftop solar producers up to 50 kWh being paid Rs.19.75 for 20\nyears, while systems above 50 kWh be paid Rs.18.75.<\/p>\n\n\n\n

Small solar power producers<\/p>\n\n\n\n

Earlier,\nSLSEA accepted solar power produced by small private producers up to 5 MW,\naccepting power at Rs.23.10 a unit. Since January 2016, CEB blocked all NCRE\nprojects. Small Solar Producers Association protested that 617 prospective\nproducers with 1,555 MW capacity already registered with SLSEA and having paid\nover Rs.100 million were let down by CEB. The Minister wished to reduce the\npayment to Rs.16 a unit, claiming that solar panel costs have come down in the\nworld market.<\/p>\n\n\n\n

Solar power tender<\/p>\n\n\n\n

In\nJune 2017 under Sooryabala Sangramaya Phase II, CEB called bids for 60 solar\npower plants of 1 MW capacity, to be connected to 20 grid stations. Out of 63\nbids received, 36 were accepted under rates of Rs.12.73 to Rs.18.37 per unit,\naveraging Rs.17.22. Of the accepted projects, currently 16 MW of power has been\nconnected, indicating poor progress after 2\u00bd years.<\/p>\n\n\n\n

CEB deliberately delayed renewable\nenergy<\/p>\n\n\n\n

Over\nthe past 10 years although the country touched renewable energy, CEB\ndeliberately obstructed the development. Wind power projects developed since\n2010 was stopped in 2014. Meanwhile, politicians failed to give policy support\nto renewables. If an acceptable system was established, private sector would\nhave installed over 1,000 MW of wind power projects by now, completely\neliminating the power crisis. Now, CEB wishes to call tenders claiming least\ncost principle is applied.<\/p>\n\n\n\n

1 MW solar plants<\/p>\n\n\n\n

When\n617 prospective producers registered to produce up to 5 MW totalling 1,555 MW,\nCEB called tenders under 1 MW totalling 60 MW. Under the tender the developer\nneeded to own five acres land for the project (afterwards reduced to three\nacres and leasing allowed); secure all environmental clearances, governmental\napprovals, statutory licenses and connect power to the CEB grid station. The\ngrid stations proposed were Anuradhapura, Habarana, Kilinochchi, Maho, Pannala,\nPolonnaruwa, Valachchenai, Vavuniya, Horana, Panadura, Embilipitiya, Beliatta,\nGalle, Matara, Mathugama, Ampara, Mahiyanganaya, Monaragala, Pallekele and\nVavunathivu.<\/p>\n\n\n\n

Above\nconditions meant the investor needed five acres near the grid station,\ngenerally located in a suburb of the town with high land costs; also small\nproduction of 1 MW making overhead costs higher. Even under these conditions 36\ninvestors submitted tenders and CEB accepted submissions averaging Rs.17.22.\nThe accepted projects are coming into production now, but the process took\ntwo-and-a-half years.<\/p>\n\n\n\n

CEB\nalso limited the generation: For 1 MW solar only 36 were accepted. For wind\npower tenders were called for 1 to 10 MW for a total of 60 MW. CEB\u2019s\nprocurement process suggests they are deliberately manipulating the system to\nlimit the renewable power production and keep renewable prices above the coal\nbased generation rates which they claim as around Rs.17 a unit.<\/p>\n\n\n\n

Moving forward<\/p>\n\n\n\n

Qatar\nsolar tender shows the very low prices for large solar projects in the dry\nMiddle East. Sri Lanka never will be able attract Qatar price of US$0.016 or\nRs.2.88 \/kWh, but we may be able to reach Rs.7.00 for large power plants if\nproperly marketed.<\/p>\n\n\n\n

Sri\nLanka\u2019s renewable power generation could be of three types. 1. Roof-top solar\nto continue for another 3 years. 2. Mid-range power generation from 5 to 30 MW\nfor solar and to 50 MW for Wind, by local entrepreneurs. 3. Large scale power\nplants exceeding 150 MW open to tender.<\/p>\n\n\n\n

Time factor<\/p>\n\n\n\n

The\nfirst part of Qatar solar power project of 350 MW is targeted for two years.\nMeanwhile, CEB promoted 1 MW power plants took over 2\u00bd years showing the\ndeliberate restrictions placed by CEB. If the country were to achieve targets\nunfair restrictions on developers need correction.<\/p>\n\n\n\n

International power suppliers<\/p>\n\n\n\n

The\ncountry\u2019s power sector has an extremely poor reputation on tender awards. Past\nGovernments ignored number of MOUs signed for power plants with friendly\ncountries. Kerawalapitiya power plant on BOO basis has not been finalised even\nafter four years. Meanwhile two FSRUs are still pending. If Sri Lanka to offer\nsolar and wind power generation on auction to international contractors, their\nbid prices would depend on many factors. Here the analysis in IRENA\u2019s Renewable\nEnergy Auctions would be very much relevant to achieve prices near Qatar.<\/p>\n\n\n\n

Lands for power project<\/p>\n\n\n\n

Wind\nand solar projects need large land areas. Wind turbines only require a foot\nprint of 3% land area and co-existence with villagers is possible. But solar\nrequires nearly three acres per MW, meaning 30 MW plant needing 100 acres and a\n150 MW plant 500 acres. Solar plants are best located in Hambantota,\nMoraragala, Mannar, Vauniya and Kilinochchi districts where large extents of\ngenerally flat, arid, shrub lands devoid of streams and population are\navailable on State-owned lands.<\/p>\n\n\n\n

Lands\ncould be selected by investors themselves saving time and approved by CEB.\nPossible areas could be selected via Google map and finalised after field\nvisits, making field visits minimum and saving time.<\/p>\n\n\n\n

Mid-range power generation<\/p>\n\n\n\n

Four\nyears ago 617 prospective producers registered to produce up to 5 MW totalling\n1,555 MW. If each company registered 10 times over would require 61 companies,\nstill too high a number. Thus large number of investors would have registered\nwell over 10 times. Thus lands over 100 acres could be allocated to a single\ninvestor or be distributed over number of small investors and the generated\npower minimum 30 MW be collected by CEB established power lines.<\/p>\n\n\n\n

The\nselected State lands need be released to prospective investors on a nominal\nlease, on condition that lands be utilised for the purpose within a specified\nperiod. Also cumbersome approvals from various institutions could be waived off\nfor solar and wind projects.<\/p>\n\n\n\n

Power purchase price<\/p>\n\n\n\n

Tenders\ncalled for 1 MW solar averaged Rs.17.22, which included owned property and\ndelivering power to CEB grid. If State lands are released and power is\npurchased by CEB at site, power from a 5 MW plant could be delivered at Rs.15 per\nunit. If he produces 30 MW, purchase price could come down to Rs.12\nprogressively.<\/p>\n\n\n\n

In\na similar manner wind power producers could produce up to 50 MW and prices be\nbased on tenders to be opened in few days. Main feature being there would be no\nmore tendering, opportunities would be offered to prospective investors\nselecting sites on a first-come, first-served basis.<\/p>\n\n\n\n

Large power plants<\/p>\n\n\n\n

Lands\nexcess of 500 acres would be needed for large power plants of 150 MW. The\ncountry could offer three power plants each of 150 MW for solar and wind on\ntender for prospective tenderers world-wide, making total output of 900 MW,\nequivalent to 600 MW coal or natural gas. The cost of power produced under\nabove would be around Rs. 7 per unit, less than half of natural gas and very\nmuch less than coal, now around Rs. 18.<\/p>\n\n\n\n

Construction period<\/p>\n\n\n\n

Tenders\ncalled in June 2017 for one MW solar plants took over 2\u00bd years. If investors\nare offered up to 30 MW on state lands with reduced red tape, such project\ncould be completed under 18 months. International tender for 150 MW plants\ncould be completed within 30 months from tender award. But again tender\nconditions need be made simpler.<\/p>\n\n\n\n

Meeting the power challenge<\/p>\n\n\n\n

Today,\nthe country is facing a power challenge and the cabinet accepted coal and\nnatural gas plants. But getting environmental acceptance for coal would be near\nimpossible. Meanwhile natural gas import, storage along with accommodating\nMannar gas has not even been discussed. Thus will require over five years with\npower costing minimum Rs.18 and Rs.15 per unit. Meanwhile, the country will\nhave to resort to high cost emergency power purchases.<\/p>\n\n\n\n

Whereas,\nsolar and wind power from mid-range producers cost between Rs.15 to 12 and from\nlarge producers supplying at around Rs.7 a unit, without government funding. If\npower purchases from mid-range producers who were waiting for over four years\nare accepted as a policy immediately, their power would arrive from 12 months\nonwards, totalling 1,000 MW ending oil based power requirement. Large producers\nwould follow.<\/p>\n\n\n\n

Achieving\nabove could only be possible if CEB engineers corporate with renewables, State\nowned lands be released and approvals issued without undue hassle to investors.\nTo ensure same the President needs to appoint an Overlooking Committee\u201d\nconsidering the urgency, to ensure smooth procedures.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tudor\u00a0Wijenayake Concerns of pollution worldwide have led to an interest in renewable energy, mostly supplied from wind and solar power, delivering increasing quantities of electricity. The developments started on a small scale prior to 2010 have reached substantial proportions and are expected to meet the entire world\u2019s power demand by 2050 The country is facing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[158],"tags":[],"class_list":["post-99183","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/99183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=99183"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/99183\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=99183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=99183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=99183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}