The process of restructuring and unbundling of the Ceylon Electricity Board (CEB), is under way, with the setting up of the unbundling secretariat and a targeted timeline for implementation.
The new regulatory framework places a strong emphasis on empowering the regulatory body, potentially the Public Utilities Commission of Sri Lanka (PUCSL), with enhanced authority and enforcement capabilities. Strengthening the regulator’s role is crucial to ensuring effective oversight and preventing any adverse impact on the industry and consumers, said Chairman, Petroleum Corporation, Chair of the Board at the Petroleum Development Authority of Sri Lanka and Commission member – Colombo Port City Economic Commission, Saliya Wickramasuriya at an event hosted by the National Chamber of Commerce of Sri Lanka.
He was speaking on, ‘Presentation of Port City Development, Energy Sector Reforms, Oil Exploration and its impact on economy of Sri Lanka’.
Regarding the ongoing CEB tariff tariff increases he said that they are done to ensure the financial stability of the sector. “The transition plan following the implementation of the new electricity bill is geared towards safeguarding the hydro assets, securing revenue generation, and honoring existing commitments to the banks.”
Sri Lanka has vast potential for harnessing wind energy across the country, particularly in the Manak and Lamandota corridors. The estimated wind potential stands at a remarkable ten times the current installed capacity, offering an intriguing opportunity for the country.
The recently released Sri Lanka’s World Bank offshore wind energy roadmap in August this year too has recognized this.
“However, the challenge lies in effectively utilizing this energy, considering the limitations of the existing grid infrastructure and the absence of immediate possibilities for cross-border energy trade.”
Consequently, the focus has shifted to exploring advanced energy conversion technologies, specifically the conversion of wind energy to hydrogen and subsequently to ammonia, facilitating its storage and export potential. The initiative to develop Sri Lanka’s hydrogen strategy, a national project highlighted by the World Bank report, is currently in progress. A significant step in this direction is the upcoming international conference scheduled for November 21st, aimed at fostering collaboration between hydrogen developers and potential off-takers.
“Regarding the use of gas within the energy mix, the emphasis lies on prioritizing the development of local gas resources over relying solely on imported liquefied natural gas (LNG) due to the high associated costs of importation and infrastructure requirements.
The government’s focus is geared towards expediting the development of local gas fields, with a significant potential for off-take commitments to support their commercial viability.
He said that as of February this year, the Petroleum Development Authority (PDA) has become self-funded, no longer relying on the Treasury for funding.
