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Ministry of Power & Energy

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Performance 2013 and Programmes for 2014

Contents

Ministry of Power & Energy 01

Ceylon Electricity Board 3

Lanka Electricity Company Limited 5

LTL Holdings PVT Ltd 5

Lanka Coal Company (Private) Limited 6

Sri Lanka Energies (Pvt) Ltd 6

1 Performance 2013 and Programmes for 2014

Ministry of Power & EnergyfMinistry of Power & Energyistry of Power & EnergyMinistry of Power & Energy

1 Introduction As Sri Lanka continues on its vigorous development path towards attaining upper middle income status by mid-decade from the present status of lower middle income country, the modern energy services needed to support such development has been ensured through initiating of necessary power sector infrastructure projects, securely and reliably at lowest economic cost, while protecting the environment.

Sri Lanka has reached the national electrification ratio of 95% by end September 2013, which is a substantial improvement in the power sector compared with electrification level of 70% by end of 2005. The Ministry has launched an aggressive electricity grid extension program to reach 100% electricity access at all times to entire population, in this country, by end of 2013. In order to achieve this target, a separate project for each of the Provinces was established with financial assistance from international lending organizations and with GOSL funding. During the year, until 30th September 2013, 172,828 new electricity supply connections were established with the completion of 339 new rural electrification schemes and 3,717 extensions.

A number of new transmission projects have been initiated during 2010 -2013 with financial assistance from ADB and JICA, in order to enable the evacuation of power from new generation facilities, ensure the reliability and quality of electricity supply, and to integrate renewable sources into the grid. The transmission projects initiated during this period included construction of 58 1.9 km of new 220kV lines, 754 km of 132 kV lines, 26 of new 220 and 132 Sub -Stations and rehabilitation of 33 Sub-Stations. Special emphasis was given to improve the reliability of transmission network of Northern and Eastern Provinces.

With the commissioning of the 132 kV transmission line from Vavuniya to Kilinochchi, Kilinochchi to Chunnakam and associated new Grid Sustations in Kilinochchi and Chunnakam the Jaffna peninsula has been connected to the National Electricity Grid after 23 year in isolation . Further, 132 kV transmission lines have been constructed to power up above Grid Substations. Transmission lines at 132kV voltage from, Ukuwela to Pallekalle, Puttalam to Maho, Galle to Matara, Habarana to Valachchenei & Mahiyangana to Rantambe, have been constructed accordingly. Further the construction of 132kV transmission lines from Mahiyangana to Vavunativu via Ampara, and from Madagama to Monaragala to improve the supply reliability in the Eastern Province are in progress. A 220kV circuit is being constructed from Anuradhapura to Kothmale.

Three new grid substations are being constructed at Pallekelle, Maho & Naula, and will be energized by first quarter of 2014. Further, the works have been commenced to construct four grid substations at Polonnaruwa , Monaragala, Vavunativu, and Galle. Additionally, several existing Grid Substations were



augmented including Seethawaka, Rathnapura, Balangoda, Nuwara Eliya, Ukuwela, Rantambe, Wimalasurendra, Badulla, Vavuniya, Habarana, Panadura, Matara, Puttalam, and Ampara.

To improve the reliability and to maintain a quality of electricity supply in the distribution network, new projects were initiated to enhance the 33 kV medium voltage network in the country while improving the quality of low voltage distribution network. Special emphasis was given to reduce the system losses. The overall system losses were reduced to 11.3% by 2013 compared with 17.3%in 2005.

To develop the generation capacity of the system from the present installed capacity of 3,368 MW to 6400 MW by 2025 to meet the increasing demand and to re-duce the generation cost by adding aggregate base load capacity of 2000 MW of coal fired power plants, the generation capacity of the system was enhanced. The phase I (300MW) of the first Coal Power Plant of 900MW was commissioned in March 2011 adding 300 MW to the system. The second phase of Puttalum LakWijeya power plant with 600 MW of capacity is near in completion. The first 300 MW of Puttalum Lakvijaya Plant Phase II is scheduled to commission in December 2013 and the second 300 MW of Phase II will be available from May 2014. The 150 MW Upper Kothmale Plant commenced its commercial operation in July 2012. In order to meet the power demand and to strengthen the reliability of the power system in the Northern Province, a heavy fuel operated power plant of 25MW in Jaffna has been constructed and commence its commercial operation in January 2013. The construction of Uma Oya Hydro Power projects of 120MW is in progress and scheduled to commission by 2014.

In addition above projects, construction of Broadlands Hydro Power Project with 35MW commenced in 15 July 2013 and will available for commercial operation by 2016. The detailed feasibility, including the engineering designs of Moragolla Hydro Power Project 27MW is in progress and expected to commence the construction in 2014.

The total electricity generation from 1st January up to 30th October 2013 was 8,919 GWh, of which 38% was from oil burning and coal thermal power plants while 52 % from major hydro power and the balance 10 % was from non-conventional renewable energy sources.

In order to meet the Government objective of meeting 10% of electricity generation through non-conventional renewable energy resources by 2016, the development of small non-conventional renewable energy plants below 10 MW capacities were promoted under Standardized Power Purchase Agreement (SPPA). During 2010-2013 period 137 plants with aggregated capacity of 352 MW were connected to the grid. These plants included 255 MW of Mini Hydro, 78.45 MW of Wind Power, 1.38 MW of Solar Energy and 16.5 MW Dendro Power.

In addition to the promotion of large scale grid connected renewable energy projects, net metering was introduced in Sri Lanka for promotio n of distributed



small PV applications and other renewable sources, where customers would be able to generate small amounts of renewable energy through solar PV systems installed on their roof tops, ‘export’ the energy generated to the national grid, and only pay for the ‘net’ amount of electricity used. This is now popular among the household sector and 200 of such systems are in operation by September 2013 with the aggregate capacity of 0.8 MW.

With the extension of national grid throughout the country , the demand for off-grid systems reduced drastically. However the Ministry initiated a program to provide electricity through off-grid hybrid system from renewable sources to very remote villages and inhabited islands. The first project has already commenced to electrify Elavathuvu Island in the North Province, with the financial assistance from ADB.

The Ministry has placed very high priority on electricity demand management and efficient use of energy as a cost-effective, environmentally sound complement to capacity-addition strategies in power. A separate division on demand side management was established under the Ceylon Electricity Board to promote efficient use of energy and demand management. Further , capacity of Regional Center for Lighting (RCL), which is now managed by CEB, was strengthened.

2 The Institutions under the Purview of the Ministry The following institutions have been assigned to the Ministry of Power and energy.

Ceylon Electricity Board (CEB) – established by Act No.17 of 1969

Lanka Electricity Company (Private) Limited (LECO) – a subsidiary of CEB with shareholding and 54.84% with minority shareholding by the Treasury 43.56%, Urban Development Authority

LTL Holdings (Pvt) Ltd. (LTL) – a subsidiary of CEB with shareholding and 63% with minority

Lanka Coal Company (Pvt). Ltd – a subsidiary of CEB with shareholding and 60% with minority shareholding by the Treasury (20%), Sri Lanka Shipping Corporation (10%) and Sri Lanka Ports

Sri Lanka Energies (Pvt) Ltd. (100% owned by CEB)

According to the Extraordinary Gazette No; 1976/10 of 06.02.2013, Sri Lanka Sustainable Energy Authority, Atomic Energy Authority, Polypto Lanka Pvt Ltd which was under the purview of the Ministry has been transferred to Ministry of Environment and Ministry of Science & Technology.



3 Regulatory Environment 3.1 Sri Lanka Electricity Act No.20 of 2009

Sri Lanka Electricity Act No.20 of 2009 was enacted by the Parliament and came into operation on 8th April 2009 by repealing the Electricity Reform Act, No 28 of 2002. By this enactment regulatory powers of the electricity industry have been vested with the Public Utilities Commission of Sri Lanka.

It has become necessary to bring certain amendments to the Act especially with regard to the areas of issuing licenses to Independent Power Producers whose generation capacities over and above 25MW, delegating p owers, duties and functions of the Public Utilities Commission to its officials and Divisional Secretaries, provision for low income categories to supply electricity on the basis of recovering their service connection charges in equal monthly installments along with the monthly bill, provision for generation approved to new generation plants or the extension of any existing plant, under exceptional circumstances including non-conventional renewable energy up to 10MW of each project, among others.

Considering these requirements necessary amendments were made to the above Act and the amendments were enacted by the Parliament as Sri Lanka Electricity (Amendment) Act no 31 of 2013 and came into operation f rom 07.08.2013.

4 Power Sector Development Objectives Power Sector development activities and investment programme has been formulated in accordance with National Development Framework “Mahinda Chintana – Vision for the Future” which includes infrastructure development to accelerate the economic growth, narrow down regional disparities, to ensure the long term and medium term energy requirement through sustainable development of low cost and environment friendly energy resources, increased access to electricity and reliable delivery of energy services.

In order to achieve this development goal, the development objectives of the Ministry aims at

A Provide 100% electricity access to entire population in the country, at all times, through grid and off grid schemes by end 2013. B Increase the generation capacity of the system from present level of 3,368 MW to 6400MW by 2025. C Diversify the Power Generation mix by implementing 2000 MW of coal fired

Power Generation and to reduce the generation cost.



D Explore the possibility of introducing Power Generation from LNG Technology and Nuclear Power Technology as next generation option.

E Increase the share in grid energy supply by Non-Conventional Renewable energy sources from 4.1% in 2007 to 10% by 2016 and 20% by 2020. F Reduce the Technical and commercial losses of the transmission and distribution network from 14.6% in 2009 to 14% by 2012, 13% by 2016 and 12% by 2020. In order to achieve the above development objectives new generation projects have been implemented for maintaining the adequate electricity generation, new transmission development projects and grid extensions have been implemented for evacuation of power from new generation facilities, and meeting the growing demand in the regions and to integrate renewable sources into the grid and to improve the system efficiency.


5.1 Maintaining the Adequate Electricity Generation

Maintaining the continuity of adequate energy supplies to satisfy the increasing energy requirement of the population and demand arising from the country’s economic development, new generation projects have been planned and implemented while improving the performance of old generation plants to increase the power supply capacity to 6400MW by 2025. Table 1 below shows the existing power capacity and table 2 below shows the expected peak demand and the capacity addition of new power plants from 2013 onwards.

Table 1 – Existing Electricity Generation Capacity

Power Plants Capacity (MW)

Energy Generation

(GWh) CEB Hydro power plants 1,357 4,605 CEB Thermal power plants 878 2,919 Thermal (IPP) 764 1,420 Non-conventional Renewable Energy (NCRE) 351 871 Total Installed Generation Capacity 3,368 8,916



Table 2 – Capacity Addition of New Power Projects

5.2 Hydro Generation Expansion Projects

Hydro powers is the main indigenous resources available in the country for electricity generation and the Ministry has put the highest emphasis on development of remaining hydro power projects in the country.

5.2.1 Upper Kotmale Power Plant Project (150 MW)

Upper Kotmale Hydropower Plant commenced its commercial operations in 14 July 2012 adding 150 MW to the system. The two (02) units of 75 MW each generated average annual energy of 409 GWh. The Project was funded by the Japanese Government through Japan International Corporation Agency (JICA). The total estimated cost of the project is Rs. 37,269 million.

770 GWh of energy has been generated by the plant by end of October 2013.

5.2.2 Broadlands Hydropower project (35 MW)

Objective of the project is to add 35 MW installed capacity to the system and to generate 126 GWh Electrical Energy annually.

This is run of river type project build on the Kelani River to harness the hydro potential downstream of the existing Polpitiya Power Station. Power station is built in Yatiyanthota and main dam is built in Kitulgala. The total estimated cost of

Year PeakDemand

(MW)

Capacity Addition (MW)

Total

Medium TermDiesel

GasTurbine

Coal Hydro

2013 2688 2014 2853 44 75 600 719

2015 3035 70 70 2016 3211 120

35 155

2017 3397 500 500 2018 3604 250 49 299 2019 3820 250 250 2020 4051 2021 4258 600 600 2022 4513 300 300 2023 4796 2024 5092 600 600 2025 5418 300 300 Total 44 145 3400 204 3793



the project is USD 82 Million. 85% of the cost if funded by Industrial and Commercial Bank of China (ICBC) and the balance is from Hatton National Bank.

Construction of the project commenced on 15 July 2013 and will be completed within four years.

5.2.3 Moragolla Hydropower Project (26.5 MW)

The Feasibility study and Preparation of Detailed Design and Bidding Documents for construction of hydropower plant with 26.5MW installed capacity and 85 GWh annual electrical energy generation is in progress.

The total estimated cost of the project is USD 6.35 Million and financial assistance is provided by Asian Development Bank under Sustainable Power Sector Support II Project. The project is commenced on 24 September 2012 and completed 80% of Reviewing the Feasibility Study and will be completed by 24 Ja nuary 2014.

The ADB has agreed to fund the construction of this project under ADB loan of 2014.

5.2.4 Uma Oya Hydropower Project (120 MW)

Uma Oya is one of the remaining hydro sites and Uma Oya Multipurpose Development project which is implemented by the Ministry of Irrigation and Water Management in coordination with the Ministry of Power & Energy and Ceylon Electricity Board. The plant will add 120 MW to the generation system with 230 GWh of annual energy generation. The estimated cost of the project is 529 million USD and 85% of the total project cost is provided by the Government of Iran through Export and Development Bank as a loan.

Excavation of main access tunnel has been completed and constructions in main diversion dam culvert are in progress. The power plant will be connected to the National Grid in 2015.

5.2.5 Gin Ganga Hydro Power Project

Ging-Ganga hydropower project was originally envisaged with a capacity of 49 MW in-basin developments. The project site is located in Pitadeniya adjacent to Sinharaja forest. Studies have been completed by Department of Irrigation under consideration of trans- basin diversion with multi-purpose benefits. Final report on Trans basin diversion is to be submitted by the Department of Irrigation by end of this year. This project will be developed as a mini hydro Plant and therefore full capacity may not possible to develop.



5.2.6 Seetawaka Hydro Power Project

This is a hydro power project in the Seetawaka Ganga Tributary of the Kelani River which was identified as having a potential of around 30 MW. However this project will be developed as a mini-hydro plant. Surveying will be commenced by end of 2013.

5.2.7 Pump Storage Feasibility Study

Pump storage power plants are used to generate electricity as a normal Hydro Power plant during peak demand period by taking water from a higher level reservoir. It operates as a pumping station during the low demand period where the water received by the lower reservoir during generation is pumped back to the higher reservoir using electricity from the Grid. Thus, Pump storage plants act as both a generating stations and a pumping station. This aspect could be strategically used to flatten the countries demand profile by adding a demand to low demand period and supporting generation during high demand period. A detailed study on the feasibility of Pump Storage Hydro Power Plants in the Sri Lankan Power system has been initiated with financial assistance from JICA. The project site will be determined by feasibility study. The detailed feasibility was commenced in March 2013 and will be completed by October 2014.

5.3 Thermal Generation Expansion Projects

5.3.1 Uthuru Janani Diesel Power Plant at Chunnakum (24MW)

In order to meet the power demand and to strengthen the reliability of the power system in Northern Province, heavy fuel operated power plant of 24MW was installed in Jaffna and commercial operation of the plant commenced on 01 January 2013. LKR 3500 million of CEB funds has been invested for the project.

Uthuru Janani-24 MW Thermal Power Plant



5.3.2 Norochchole, LakWijaya Coal Power Project – (3X300MW)

To meet the increasing demand of electricity in the country, and to diversify the power generation mix a major coal plant of 900 MW has been implemented in Norochchole. The Phase I of the project with the capacity of 300 MW was commissioned March 2011 and the Phase II with capacity of 2X300 MW is under implementation. The first 300 MW of Phase II is expected to commission in December 2013 and the second 300 MW Phase II will be available from 01 May 2014. The funds required for phase I and phase II of the project were provided by EXIM Bank of China.

Lak Wijaya Coal Power Plant- Puttlam

Constructions of Second Phase, Lak Wijaya Coal Power Plant - Puttlam



5.3.3 Sampoor Coal Power Plant (2X250MW)

Sri Lanka’s second coal fired thermal power plant is implemented as a joint venture of Ceylon Electricity Board and National Thermal Power Corporation (NTPC) of India. The Joint Venture Company has been incorporated as Trincomalee Power Company Limited on 6th September 2011. Trincomalee Power Company Limited is responsible for implementation and operation of the 2 X 250MW coal power plant in Sampur. The total estimated cost of the project would be USD 512 Million.

The Sampoor Coal Power Plant will comprise two 250 MW power generators. The power generated will be transmitted to the national grid through high voltage transmission lines from Sampoor through Habarana to the Veyangoda Grid Substations.

Power Purchase Agreement, Implementation Agreement, BOI Agreement, Land Lease Agreement and Coal Supply Agreement were signed on 07 October 2013 by relevant parties including GOSL, CEB and JV Company. Project is expected to be commissioned before end of 2017.

5.3.4 Feasibility of Liquid Natural Gas (LNG) Power Plant

Liquid Natural Gas (LNG) is a fuel which is cleaner than Coal or Fuel Oil. In order to explore the feasibility of LNG Power Plant, a Study for Energy Diversification Enhancement by introducing LNG operated power generation options is basically carried out under a JICA loan amounting to JPY 820 million.

The project consist of two phases viz. Phase I, Phase II. Under Phase I a feasibility study to review the LNG as a fuel option was examined and completed in March 2010 at a cost of JPY 50.3 million. The Phase II FEED Study with a wider scope will be completed by April 2014.

5.3.5 Feasibility of Nuclear Power

Nuclear Power is treated as one of the cleanest power generating sources when atmospheric emissions are concerned. However, technological barriers, high investment costs and long lead times of implementation have delayed the recognition of Nuclear Power as a future power generating source for Sri Lanka. Feasibility studies of Nuclear Power in Sri Lanka energy system was initiated with CEB, and with the technical assistance of the Atomic Energy Authority. International Atomic Energy Agency (IAEA) provides technical cooperation for the ongoing study fall in line with this attempt, action has already while been initiated to bring the necessary Legal Framework guarantee the safety measures, regulations, provisions and other related requirements.



5.4 Rehabilitation of Old Hydro Power Plants

In addition to the construction of new generation facilities, rehabilitation projects have been initiated to refurbish identified old hydro power plants, in order to improve efficiency and reliability of the machines. Obsolete equipment will be replaced with modern equivalents of improved technology, to over come non-availability of spares for aged components and to ensure successful performance .

5.4.1 Rehabilitation of New Laxapana and Wimalaurendra Power Stations

This Project was funded by France. Total estimated cost of the Project is LKR 6,660 million. Overall project progress is 97%. Except unit 2 of New Laxapana rehabilitation of other units of the project were completed on April 2013 and rehabilitation of Unit 2 machine of New Laxapana is scheduled for January 2014.

5.4.2 Rehabilitation of Old Laxapana Power Station

The project was completed on June 2013. LKR 4,059 Million was invested for the project. This financial assistance was provided by Austria. Guarant eed minimum efficiency of each turbine after rehabilitation is 90.18% whereas the original efficiency was 73% 5.4.3 Rehabilitation of Samanala & Samanalawewa Power Station

Rehabilitation of Polpitiya Hydro power plant (Samanala) and Samanalawewa Hydro power plant is on pipe for immediate implantation and action has been initiated to issue open international bidding for such rehabilitation. .

5.5 Increased Generation through Non-Conventional Renewable Energy Resources

The government policy envisages the Increase the share in grid energy supply by Non-Conventional Renewable Energy (NCRE) sources from 6 % in 2012 to 10% by 2016 and 20% by 2020. The private sector has been allowed to develop non -conventional renewable energy plants 10 MW and below capacities under Standardized Power Purchase Agreement (SPPA) on non-negotiable technology specific tariff. 352 MW of non-conventional power plants have been connected to the system by 30 September 2013 with a contribution of 10% of total generation by small renewable energy plants. Total energy generated by NCRE plants by end of September is 871.3 GWh



5.5.1 Mini Hydro

There were currently 199 operational mini hydro plants with an installed capacity of 255 MW feeding into the national electric grid. Further 64 plants with total capacity of 150 MW are under construction.

5.5.2 Wind Power

There were 10 operational Wind Power plants with an installed capacity of 78 MW feeding into the national electric grid. Further 3 plants with total capacity of 21 MW are under construction. The first large scale wind park has been planned in the Island of Mannar, which would enable addition of 200 MW in clean energy capacity. It is expected to commence the construction of the 1st 100 MW during in 2014.

5.5.3 Solar Energy

Solar Energy is one of the fastest growing power -generation technologies in the world although it’s still a very small fraction of global power -generating capacity from all sources. The Government took initiatives to introduce grid connected solar power in Sri Lanka from 2011.

At the end of September 2013, four Solar Power plants with an installed capacity of 1.38 MW feeding into the national electric grid. Further , 1 plant with total capacity of 10 MW is under construction.

5.5.4 Biomass Energy

The recent efforts to promote the use of bio mass for power generation have started to show positive results and encouraging signs of increased interest among developers on establishing of dedicated plantations for biomass based power generation. The currently there were 4 Biomass Energy plants connected to the National Electricity Grid having the total capacity of 16.5 MW. Further 12 plants with total capacity of 61 MW are under construction.

NCRE Capacity Addition (upto Sep.2013)



5.5.5 Off-grid renewable systems

Several non-conventional primary sources have been used for off -grid electricity generation in Sri Lanka. Solar photovoltaic systems have been increasingly used from the early 1980s. Small village-level hydroelectric systems are increasingly used in remote locations for household use. There are over 300 such mini grids powered by very small hydro systems serving about 7000 households in the country.

With extension of the national grid to rural areas of the country the demand for off-grid systems drastically reduced. However isolated communities, small inhabited islands will be provided with off -grid standalone renewable systems or renewable energy hybrid systems which comprise of combination of several renewable resources.

Given below is the electricity generation from non-conventional Sources

Grid Connected Renewable Energy Plants

Non-Conventional Primary Source

Grid Connected 2013 No. of Installations

Average Peek capacity (MW)

Small Hydro 199 255 Wind 10 78 Solar PV 4 1.38 Biomass 4 16.5

Annual Energy Generation from NCRE projects



6 Transmission Transmission Network Development To ensure reliable and stable transmission network to cater to the future load growth and to evacuate the power generated by new generation facilities, transmission development activities are initiated according to Long Term Transmission Development Plan prepared by CEB.

Present Transmission Map Transmission map of 2006

Proposed Year 2015 Transmission



6.1 Kilinochchi – Chunnakam Line Transmission Project

The Vavuniya Kilinochchi 132 kV transmission line which was energized in 2012 extended to Chunnakum with the completion of the Kilinochchi – Chunnakam Transmission Project covering the entire north. Scope of this project includes the construction of a 63 MVA, 132/33kV Grid Substation at Chunnakam and the construction of 68 km long 132kV transmission line from Kilinochchi Grid Substation to Chunnakam Grid Substation. ADB has committed funding under CARE project for this project, which will cost Rs. 1 ,760 million.

The project was completed in 2013 and energized on 14 August 2013.

6.2 Sustainable Power Sector Support II Project (2011 Loan Package of ADB) Sustainable Power Sector Support II Project is funded by the Asian Development Bank under the 2011 loan package. Total Loan mount is USD 120 Million. Preparation of detailed Engineering Design for Moragolla Hydro and Construction phases of North East Power Transmission line project, New Galle Transmission line project and Ampara Distribution Improvement Projects are implemented under this project. 6.2.1 North East Power Transmission Development Project

North East Power Transmission Development Project is aimed for strengthening of transmission network in the Eastern Province, and to cater the future developments planned in the province. Project is important for meeting the increasing demand in Uva, Eastern, North & North Central provinces , and to minimize the low voltage issues encountered by the commission and to improve the reliability of electricity supply to the consumers of the said provinces. This project will also strengthen the national transmission network by providing new

Kilinochchi new Grid Substation



transmission lines connecting Eastern & Uva and Central & North Central provinces. Project is funded by the Asian Development Bank. The Total estimated cost is LKR 6,348 Million.

This project consist of,

Lot A-construction of 132 kV/ 33 kV, 31.5 MVA new Grid Substations at Polonnaruwa and Monaragala, construc tion of 132 kV/ 33 kV, 2x 31.5 MVA new Grid Substation at Vavunativu and construction of two 132 kV line bays in existing Ampara GSS.. Lot A is expected to be completed by December 2014.

Lot B- construction of 132 kV double circuit transmission lines from Mahiy angana GSS to proposed new Vavuna tivu GSS via Ampara GSS(129 km), Habarana -Valachchenai 132 kV transmission line to proposed new Pol onnaruwa GSS (0.5 km) and Medagama to proposed new Monaragala GSS (16 km) . Physical progress is 51%.This Lot is expected to be completed by August 2014.

Lot C- Stringing of Second Circuit of existing Kotmale - New Anuradhapura 220 kV transmission line (163 km). The physical progress is 69% and Expected to be completed by May 2014.

6.2.2 New Galle Power Transmission Development Project

The project is expected to strengthen and expand the transmission Network to provide a reliable supply of electricity to the existing consumers and to the prospective consumers in the southern region. The Project is funded by ADB under Sustainable Power Sector Support II Project. Total estimated cost is LKR 2,657 Million. Project consists of two parts,

Lot A1: Construction of 132/33 kV Grid Substation having 3 nos of 31.5 MVA, at Galle. Physical Progress of this lot is 14% and will be completed by November 2014

LOT C - Stringing works started in Second Circuit of Kotmale - New Anuradhapura

220 Transmission line



Lot B : Construction of 132 kV, 40 km long Transmission line from Ambalangoda Grid Substation to New Galle Grid Substation. Physical Progress of this lot is 30% and will be completed by September 2014.

6.3 Clean Energy & Access Improvement Project (2010 ADB Loan Package) Clean Energy & Access Improvement Project is funded by the Asian Development Bank under the 2010 loan package. Total Loan mount is USD 160 Million. The objective of the Clean Energy & Access Improvement Project is to strengthen the transmission infrastructure to facilitate economic development and to absorb renewable energy into the system. The project consists with eight parts. Part 3, Part 4 and Part 8 are distribution components of the project .

6.3.1 Modernization of the System Control Centre –Part 1

System Control Centre commands all the large scale Grid connected generation and operates the entire High Voltage Transmission Network. A complete modernization of the System Control Centre of CEB was initiated with financial assistance of ADB to introduce fully-fledged System Control and Data Analysis (SCADA) system with modern Energy Management tools integrated with it for efficient control of the power system. Project consists of two packages. The esti mated cost of the project is LKR 2,934 million. The project is expected to be completed in November 2015.

Package-A: a new System Control Centre with modern SCADA and Energy Management facilities will be set up in Sri Jayawardenepura.

The package-B: implement an island-wide fiber optic network for providing the voice and data communication requirements of Package A. Constructions are ongoing and 80% completed.

Construction of 132kV Transmission Line from Ambalangoda to Galle GSS (Lot B )



6.3.2 Transmission System Strengthening -Transmission Lines Project –Part 2

Project includes construction of new transmission lines to strengthen the network for additional power transmission while improving the quality and reliability of supply. The total estimated cost of the project is LKR 2,340 million and it is funded by ADB. The project includes three Transmission Lines as follows.

New 132kV Double Circuit Transmission Line from Galle to Matara (35 km) New 132kV Double Circuit Transmission Line from Puttalam to Maho with

Single Circuit Stringing (42 km) New 132kV Double Circuit Transmission Line from Ukuwela to Pallekale

(17km) In & Out Connection of Naula grid Substation from existing Ukuwela -Habarana

132 kV Transmission Line Overall progress of the project is 98%. Puttalam to Maho line is 100% and already completed. Galle to Matara and Ukuwela to Pallekale line will be completed by November 2013.

Galle – Matara Transmission line Puttlam – Maho transmission Line

Lot B- OPGW Installation

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6.3.3 Transmission System Strengthening - Grid Substations Project- Part 2

In parallel to construction of new transmission lines grid substations were strengthened under Transmission System Strengthening Grid Substations Project. The project consists of three packages, Lot A1, Lot A2 & Lot A3. The total estimated cost is LKR 4,001.5 million.

Lot A1; Augmentation of existing 132/33kV Grid Substation at Kurunegala. Contract agreements signed for construction on 07/08/2013

Lot A2; Construction of three new 132/33kV Grid Substations at Maho, Pallekelle&Naula, and augmentation of existing Grid Substations at Galle, Matara, Puttalam, Habarana & Panadura. Constructions are ongoing and Overall progress is 84%. This lot will be completed by December 2013.

Lot A3: Augmentation of existing 132/33kV Grid Substations at Horana &Veyangoda. Contract agreements signed for construction on 07/08/2013.

Construction of Pallekelle Grid Substation Construction of Naula Grid Substation

Ukuwela - Pallekele Transmission



6.3.4 Augmentation of Grid substations for Absorptions of Renewable Energy Project –Part 6

In order to improve the renewable energy absorption capacity, a number of grid substations in the system will be augmented. Phase I of the project is funded by GOSL at estimated cost of LKR 1,168 million and phase II of the project is funded by ADB. The total estimated cost is LKR. 2,704 million.

Phase I - Lot A –Augmentation of Rantambe, Ratnapura and Wimalasurendra GSs. Construction of Ratnapura Gs was completed. Lot A will be Completed by December 2013.

Lot B – Construction of 21 km, 132 kV Transmission Line from Rantambe GS to Mahiyangana New GS. Construction completed and energized.

Phase II – Augmentation of Badulla, Balangoda, Nuwaraeliya, Seethawaka, Ukuwela and Mahiyangana GSs. Overall construction progress is 100% and scheduled to be energized by February 2014.

Maiyangana Grid Substation Balangoda Grid Substation

Wimalasurendra Grid Substation Rantambe Grid Substation



6.3.5 Transmission System Strengthening Eastern Province Project –Part 7

The Transmission System Strengthening Eastern Province Project was initiated to strengthen the transmission network in Ampara and Valachchanai area. This project aims at strengthening the High Voltage Trans mission Network in the Eastern Province. Total estimated cost of the project is LKR 2,295 Million. The project consists of two packages, Lot A and Lot B.

Lot A- The existing 132/33kV Grid Substations at Ampara and Valachchenai will be augmented to increase their capacities by 31.5 MVA. Construction progress of Lot A is 96%. Lot A will be completed by end of November 2013.

Lot B- A new 100km long 132kV Transmission Line constructed from Hab arana GSS to Valachchenai Grid Substation. Construction work has been completed. Transmission line will be energized in 2014.

6.4 Veyangoda - Habarana 220 kV Transmission Project

In order to evacuate power to be generated from Trincomalee (Sampoor) Coal Power plant new transmission line will be constructed from Veyangoda to Habarana with JICA funding assistance and Habarana to Sampur with funding arranged through Indian Credit Line. 150km 220kV low loss transmission line is to be constructed from Habarana to Veyangoda along with the construction of New Habarana Grid Substation & Augmentation of Veyangoda Grid Substation. Total estimated cost of the project is JPY 9,573 million. Constructions are expected to be commenced by February 2014 and will be completed by July 2016.

Seetawaka Grid Substation Ukuwela Grid Substation



6.5 Transmission Line from Habarana to Sampoor

The project funded through Indian Credit Line, includes the Construction of Habarana - Sampoor 220kV double circuit, 91 km, Zebra Transmission Line, Construction of a 220 kV extension to the existing 132 kV GSS at Habarana and Construction of Proposed 220 kV GSS at Sampoor. Selection of line route is completed and project is expected to be commenced in 2014. Time duration for the construction of the project is 24 months.

6.6 220 kV Protection Development Project

The scope of 220 kV Protection Development Project covers the rehabilitation of protection relays, control panels and communication eq uipment 220 kV Transmission Network. This project is funded by a loan from KfW Bank of Germany. The estimated cost of the project is LKR 1200 million. Construction of the project was initiated on March 2012. The overall progress is 80%. Project will be completed by May 2014.

6.7 India – Sri Lanka inter Grid Interconnection Project

The objective of the project is to interconnect the India -Sri Lanka Power grids through a sub-marine cable for power exchange between India and Sri Lanka. Proposed interconnection is a 400kVA inter grid connection project between India, (Madurei) and Sri Lanka (Anuradhapura) with power exchange capacity of 500MW. A detailed feasibility study has been conducted and comments are pending for the alternative cost estimation from India.

6.8 Installation of 220/132kV inter bus power transformer at Rantambe Power Station Inter bus power transformer at Rantambe will be installed under the project. Further, improvements to Rantambe Switchyard will be made to facilitate the installation of the transformer. The estimated cost for the project is LKR 678 Million The project is expected to be completed by end of year 2014

6.9 Installation of 100MVAr capacitor Bank at Pannipitiya

To improve the voltage profile of the power system and to ensure quality of the power supply in Colombo area, it is proposed to install 100MVAr breaker switched capacitor banks at 132kV bus bar of Pannipitiya Grid Substation . Cost of the development is estimated to be LKR 281 Million. Bidding process is in progress.

6.10 Augmentation of Sri Jayewardenepura 132/33kV grid substation

This project includes addition of 3rd 31.5MVA, 132/33kV transformer to Sri Jayawardenapura Grid Substation, to enable CEB to cater the growing demand for



electricity in Palewatta, Nawinna, Nugegoda, Thalawathugoda and Malabe areas. The estimated cost of the development is LKR 354 Million. Construction period of the project is 2013 to 2015. Bidding process is in progress.

6.11 Augmentation of Hambantota 132/33 kV grid substation

In order to cater the growing demand in Hambantota district specially for Hambantota Harbor, Mattala Air Port, Export Processing Zone and Refinery Salt industry etc, It is planned to increase the capacity of 132/33kV Hambantota Grid Substation to 94.5MVA by adding two 31.5MVA transformers. The estimated cost of the development is LKR 535 Million. Project is under the bidding stage and will be completed by 2015.

6.12 Sooriyawewa 132/33kV Grid Substation Project

Sooriyawewa Grid Substation is planned to be constructed to meet the increasing electricity demand in the area due to ongoing development activities of the Government.

The Sooriyawewa Grid Substation project includes installation of 2X31.5MVA Transformer and 9km long single in and out connection from Embil ipitiya - Hambantota 132 kV transmission line. The estimated cost of the development is LKR 996.70 Million. Project is under the bidding stage and w ill be completed by 2016.

6.13 Greater Colombo Transmission and Distribution Loss Reduction Project

Objective of the project is to cater the rapidly increasing electricity demand in Colombo City and also to improve the quality and reliability of Colombo City electricity supply. The estimated cost of the project is USD 190 Million. Financial Assistance is provided by JICA through 43 rd Yen Package in 2013. This project consists of:

1) Construction of 220/132kV, 500MVA switching station at Colombo Port 2) Construction of 132/11kV, 126MVA grid substation at Colombo Port 3) Construction of 132/11kV, 94.5MVA and 63MVA grid substations at Slave

Island and Hunupitiya 4) Augmentation of existing Maradana and Havelock Town 132/11kV, 63MVA

grid substations to 94.5MVA 5) Construction of 220kV underground cables between Colombo Port Switching

Station and Kerawalapitiya and Kelanitissa Power Stations (22km) 6) Construction of 132kV underground cables between Colombo Port, Fort,

Hunupitiya and Kolonnawa Grid Substations (11km) 7) Construction of 132kV underground cables between Colombo Port, Slave

Island and Kollupitiya grid substations (5km) Open International tendering process, is in progress and project will be completed by December 2016.



6.14 Clean Energy and Network Efficiency Improvement Project (2012 Loan Package of ADB)

Clean Energy and Network Efficiency Improvement Project is funded by the Asian Development Bank under the 2012 loan package. The objective of the Clean Energy and Network Efficiency Improvement Project is to strengthen the transmission infrastructure to facilitate economic development, ensure reliable electricity supply and enable future wind power generation development in the Mannar area. The cost of the project is estimated to be USD 130 Million. Project includes four packages. All four packages are under the bidding stage. The Transmission Component of the Project includes: 1. Package 1 - Mannar Transmission Infrastructure

Lot A: Augmentation of Vavuniya 132/33kV Grid Substation & Construction of Mannar 132/33 kV grid Substation Lot B: Construction of new Anuradhapura to Vavuniya 55km Transmission line & Vavuniya to Mannar 70km, 132 Transmission line.

Total estimated cost of Package 1 is LKR 5,173 Million and will be completed by June 2017. 2. Package 2 - Construction 132kV Transmission infrastructure

Lot A: Construction of 132/33 kV Kegalle Grid substation & augmentation of 132/33kV Thulhiriya GS.

Lot B: Installation of Breaker Switched capacitor banks for loss reduction at Biyagama(50 MVAr), Sapugaskanda (50MVAr), kolonnawa new(30MVAr), Kolonnawa old (30MVar) GSs

Lot C: Construction of Thulhiriya - Kegalle22.5km, 132 Transmission line, Polpitiya - New Polpitiya 10km, 132 Transmission line, Athurugiriya - Padukka 10km, 132 kV Transmission line, Athurugiriya - Kolonnawa 15 km, 132kV Transmission line, Total estimated cost of Package 2 is LKR 3,900 Million and will be completed by December 2017. 3. Package 3 - Construction of 220kV Transmission Infrastructure

Lot A: Construction of New Polpitiya & Padukka 220/132kV GSs. Augmentation of Pannipitiya GS.

Lot B: Construction of New Polpitiya - Pannipitiya 58.5km, 220kV Tra. Line through Padukka.

Total estimated cost of Package 3 is LKR 6,904 Million and will be completed by June 2017



4. Package 4 is the Distribution component which include, Package 4 - MV Network Energy Efficiency Improvement

Lot A: Vavuniya - Kebhithigollawa 23km, 33kV tower line & 33kV Gantry at Kebithigollawa and New Anuradapura to kahatagasdigiliya 31km, 33 kV tower line and 33kV Gantry at Kahatagasdigiliya.

Lot B: Kiribathkumbura to Galaha 15km, 33 kV tower line and 33 kV Gantry at Galaha, Galmadu Junction to Akkaraipatthu, 18km,33 kV tower line and Ganntry at Akkaraipattu: and Akkaraipattu to Pothivil, 42km, 33 kVtower line and 33kV Gantry at Potuvil.

Total estimated cost of Package 4 is LKR 1,940 Million and will be completed by 2015.

6.15 Projects Proposed under balance funds of JICA and ADB Loans for 2014

6.15.1 JICA savings

Procuring of Essential Grid Substation spares. Estimated cost LKR 346 Million. Procuring of Essential 1320kV Transmission Line spares. Estimated cost LKR 27 Million Augmentation of Kilinochchi Grid Substation. Estimated cost LKR 325 Million.

6.15.2 ADB Savings

Augmentation of Chunnakam Grid Substation by adding third 132/33kV, 31.5MVA transformer. Estimated cost LKR 250 Million

Augmentation of Polonnaruwa and Monaragala Grid Substations by adding second 132/33kV, 31.5 MVA transformers. Estimated cost LKR 600 Million.

Augmentation of new Valachchenei Grid Substation by adding second 132/33kV, 31.5MVA transformer. Estimated cost LKR 392 Million. Augmentation of Maho and Naula Grid Substations by adding second 132/33kV, 31.5MVA transformers and construction of additional 132kV line bay at Puttalam Grid Substation. Estimated cost LKR 1014 Million.

Construction of 42 km long 132 kV second circuit from Maho Grid Substation to Puttalam Grid Substation. Estimated cost LKR 230 Million.

Kelaniya Grid Substation will be augmented using balance funds. Total estimated cost is LKR 366 Million.

Augmentation of Kiribathkubura Grid Substation. Estimated cost LKR 1024 Million.

Installation of Substation Automation System at new Valachchenei Grid Substation. Estimated cost LKR 30 Million.



7 Electricity Distribution Network Development and

Accessibility Improvement

The Ministry of Power & Energy has placed a very high priority on implementation of Rural Electrification projects in order to achieve the electrification goal of 100% by the year end of 2013. To achieve this objective, the Ministry has initiated number of projects with approximate total investment of Rs. 40,000 mill ions. The present RE programme includes construction of more than 4000 new RE schemes and extensions to the existing RE schemes. Following projects are planned to provide electricity on Provincial basis in order to cover all Districts.

Access to Electricity - 95%



Elec

trifi

catio

n Le

vel %

Year

Western Province 100% Northern Province 72%

Colombo 100% Vavunia 84% Gampaha 100% Kilinochchi 45% Kalutara 100% Jaffna 84% Central Province 96% Mannar 74% Kandy 98% Mulative 40% Matale 92% Uva Province 89% Nuwara Eliya 91% Badulla 92% Sourthern Province 100% Monaragala 85% Galle 100% Eastern Province 82%

Matara 100% Ampara 81% Hambantota 100% Baticaloa 81% North Central Province 91% Trincomallee 87% Anuradhapura 93% North Western Province 95%

Polonnaruwa 90% Kurunegala 95% Sabaragamuwa Province 93% Puttlam 95% Rathnapura 93% Kegalle 97%

Change of Electrification Level in the Country



7.1.1 Rural Electrification Project 8

RE 8 project scope include, the construction of 1000 schemes, 1000km of 33/11 kV medium voltage distribution lines, 6000km of low voltage distribution lines and conversion of 500km of low voltage lines to three- phase, providing electricity supply to 180,000 new consumers covering 2000 villages. The project covers Western, Sabaragamuwa, North Western, and Central. The composition of the consumers will include 157,000 domestic, 15,660 commer cial, 6,300 industrial and 540 religious- purpose categories. This project is funded by the Government of Iran and the GOSL. Total project cost is US$ 106.5 million . 118 new RE Schemes and 983 new extensions were implemented in 2013 under this project.

7.1.2 Uthuru Wasanthaya Project

The aim of the Uthuru Wasanthaya (Vadakkin Vasantham) project is to provide the supply of electricity to Northern Province with 400 new rural electrification schemes. 85% of material and equipment cost of the project is funde d by China Exim Bank and 15% by CEB. The construction cost is funded by GOSL. Total project cost is LKR 4,271 million. 43 new RE Schemes and 52 new extensions were implemented under this project from January to first October 2013.

7.1.3 Uva Udanaya Project

The objective of this project is to supply electricity for about 800 remote villages in Monaragala and Badulla districts. The scope of the project includes construction of 250 new substations 625 km of new medium voltage lines and 2250 km of new low voltage distribution lines. The estimated cost for materials and equipment of the project is LKR 5,281 Million. 85% of the material and equipment cost of the project funded by China Exim Bank under buyer’s credit terms and the cost for construction is funded by GOSL. 62 New RE schemes and 416 new extensions were implemented under this project from January to first October 2013.

7.1.4 Negenahira Navodaya

Project objective is to establish 488 rural electrification schemes in Trincomallee and Baticaloa Districts. About 300 remote villages are to be electrified under this project. The estimated cost for the material and Equipment of the project is LKR 6,530 million, 85% of the material and equipment cost is provided by China Exim Bank and the construction cost of the project is funded by GOSL. 29 New RE schemes and 242 new extensions were implemented under this project from January to first October 2013.



7.1.5 Eastern Distribution Development Project

The project is being implemented in Ampara District and includes implementation of 100 new RE schemes under the Sustainable Power Sector Support II project - ADB 2011 loan package. Construction cost of the project is funded by GOSL. Total estimated cost of the Project is LKR 2,950 Million. 15 New RE schemes and 107 new extensions were implemented under this project from January to first October 2013.

7.1.6 Rajarata Navodaya (RE 4 Extensions)

772 schemes are being constructed by the project in North Central Province. 85% of the material and equipment cost of the project will be met through a financial facility arranged through a Nordea Bank of Sweden and balanced 15% by CEB. The construction cost is provided by GOSL. Total estimated cost of the Project is LKR 10,850 Million. 57 New RE schemes and 551 new extensions were implemented under this project from January to first October 2013.

7.1.7 Improving Gender- Inclusive Access to Clean and Renewable Energy

Financial assistance is provided by ADB via grant facility. Total estimated cost of the project is LKR 112 Million. Objective of the Project is to provide the accessibility to clean energy for 2,200 households in Ampara District of Eastern Province, training on clean energy for about 1,000 people from deprived household in the Eastern province (Where 30% of them are women) and capacity building of CEB Training department. Initial preparation for the projects has been already completed and Project activities will commence in 2014.

Funds have been provided to following projects to meet the construction cost to supplement the ongoing projects for electricity supply to rural areas for which foreign funds are not provided.

7.2.1 Ruhunu Udanaya –Sourthern Province Lighting Sri Lanka Project. 571 new RE extensions were implemented under this project from January to first October 2013. No foreign funds to procure materials.

7.2.2 Sabaragamuwa Arunalokaya – Kegalle and Ratnapura Districts Lighting Sri Lanka Project. 161 and 23 new extensions were implemented respectively in Kegalle and Rathnapura under this project from January to first October 2013. (Funding assistance by RE8 Iran funded projects for material and GOSL for construction work)



7.2.3 Kandurata Udanaya – Central Province Lighting Sri Lanka Project (Funding assistance by RE8 Iran funded projects for material and GOSL for construction work)

7.2.4 Batahira Ran Aruna – Western Province Lighting Sri Lanka Project - (GOSL funding for construction work and for material by Iran RE8 project) 111 new RE extensions were implemented under this project from January to first October 2013. No foreign funds to procure materials.

7.2.5 Wayamba Pubuduwa – North Central Province Lighting Sri Lanka Project (GOSL funding for construction work and for material by IRAN RE8 project.

Investment for the RE projects during 2010, 2011, 2012 and 2013 up to 30 th Sep. is as follows,

RE project 2010 Rs.Mn

2011 Rs.Mn

2012 Rs.Mn

Investment up to 30

Sep.2013 Ruhunu Udanaya –Sourthern Province Lighting Sri Lanka

1448 1042 160 100

Sabaragamuwa Arunalokaya Kegalle 100 10 _ _ Sabaragamuwa Arunalokaya Ratnapura

450 200 135

Kandurata Udanaya – Central Province Lighting Sri Lanka

47.2 50 3 100

Batahira Ran Aruna – Western Province Lighting Sri Lanka

368 150 37 20

Wayamba Pubuduwa – North Central Province Lighting Sri Lanka

95 142 200

Rajarata Navodaya (RE 4 Extensions) 170 2295 3603 879 Negenahira Navodaya 100 103 1029 599 Uva Udanaya 300 488 909 1109 Uthuru Wasanthaya Project 79 76 1789 605 Eastern Distribution Development Project

464 320

Rural Electrification Project 8 1979 2697 3174 204 DSM street lighting -ADB 123 53 703 Accelerated Rural Electrification Project

1200 1729 258 52.4



7.3 Low interest loan facility for electricity connections

7.3.1 Under Samurdhi Funds

Although the electricity grid has penetrated to many parts of the rural areas a considerable number of households, especially the poorest of poor, are constrained from being connected to the national grid, due to their inability to pay the initial cost of connectivity.

In order to facilitate the provision of electricity connectivity to low income household categories and Samurdi beneficiaries of the population, a loan scheme was introduced by the Ministry to recover the electricity service connection char ge (up to maximum limit of Rs.30,000)for such categories advanced by Ceylon electricity board through Samurdhi Funds and to recover such service connection charge by 60 equal monthly installments. Sri Lanka Samurdhi Authority is providing funding assistance at 10% annual interest rate to CEB to bear the upfront cost for service connection charges. More than LKR 700 Million worth loan facility has already been disbursed and 50,000 number of household were benefited by this loan programme.

7.3.2 Under ADB funds

the Ministry of Power and energy with the funding assistance of ADB (a grant of US$3.5million) has designed a “micro credit based last mile electricity connectivity programme” to operate in parallel with the CEB-Samurdi Authority Programme to improve the easy accessibility and sustainability of financial facilities to rural communities for them to obtain the electricity service connections. The project is designed to initiate as pilot project in Districts of Ampara, Ratnapura, and Hambantota.

The project is expected to be launched at the pilot locations before end of 2013.

7.4 Electricity Facilities for relocated families in Northern Province .

In addition to the RE Projects of Uthuru Wasanthaya and Nagenahira Navodaya which are being implemented in Northern and Eastern Province, Ministry has provided Electricity facilities to relocated people in Welioya area by constructing 21 new rural electrification Schemes at a cost of LKR 334.29 Million.



Ceylon Electricity Board


Ministry of Power & EnergyMi i t f P & EMinistry of Power & Energynistry of Power & EnergyCeylon Electricity Board

Highlights 2012

Electrification of households 94% of the total households in the country were electrified at the commencement of the year 2013. Average per capita electricity consumption increased by 35 units from 480 units to 515 units (kWh) / person during the last year.

District-wise Progress of Households Electrified System Energy Losses System Energy Losses has gradually reduced over past years from 2000. The system energy loss in the year 2012 stood at 11.3%. Consumer Growth The total number of consumers by the end of the year 2012 was 4,979,862 with a 5.6% annual growth.

Kurunegala

Moneragala

Kilinochchi

Vavuniya

Trincomalee

Polonnaruwa

Kegalle

Batticoloa

Matale

Kandy

Nuwaraeliya

Rathnapura

Galle

Hambantota

Mullaithivu

Anuradhapura

Badulla

Puttalam

Mannar

Ampara

Matara

Kalutara

Colombo

Gampaha

Jaffna



Consumer Category

Number of CEB

consumers Domestic 4,391,445

Religious 30,009

General Purpose

507,247

Industrial 50,760

Hotel 399

Total 4,979,862

In the year 2012, the number of new electricity connections given by the CEB was 262,414. This is an average of adding 21,868 new customers per month. Electricity Sales

The total electricity sales in the year 2012 increased by 4.5% from 10,023 GWh in 2011 to 10,474 GWh in 2012. Average daily consumption of electricity in the year was 29 GWh/day with compared to 27 GWh/day in the year 2011.



The Domestic with Religious Purpose electricity use account for the highest energy consumption, which is about 34.2% of the total consumption followed by 31.4% in the Industrial Sector in the review year. The electricity consumption of the General Purpose category represented 19.5% of the total sales showing 6.0% annual growth. Revenue Total annual revenue from the electricity sales increased by 23.1% from Rs. 132,373million in 2011 to Rs. 162,956 million in 2012.



The highest revenue was recorded from General Purpose customers followed by industrial purpose customers. The Domestic and Religious Purpose represented 26.5% of the total revenue in 2012. Electricity Generation Sources The hydro power stations including Non-Conventional Renewable Energy plants contributed 29% of the total power generation in the year 2012. This was a decrease of 27% over the year.

All the thermal power stations in the CEB and IPP generated 71% of the total generation in the year 2012 due to the low water level in the CEB hydro reservoirs. This was an increase of 23% over the previous year.

Electricity Generation by sources



Performance 2013

1. Financial Situation

During the first six months of the year CEB recorded a surplus of Rs. 3.5 billion. Hence the CEB financial situation is comparatively better than as it was forecasted at the beginning of the year. Originally the budgeted operating losses were in the range of 69 billion rupees. However, the current estimate is that the losses will be in the range of 4 billion. The two main factors being the increased revenue from the tariff revision and the decrease in direct generation cost due to higher percentage of hydro power generation. The weather conditions prevailed, while contributing to increased hydro power generation, has also stalled the demand growth.

2. Tariff

The electricity tariff was revised by the PUCSL following a tariff filing by CEB and the revised tariff became effective in April 2013.

3. Electricity Demand

During the first half of 2013, the demand growth was around 2% while the maximum demand recorded in this period was 2162 MW. 5947 million units (GWh) were generated and 5305 GWh were sold. By end October, the total generation stood at 9952 GWh, of which more than 50% had come from major hydro. Other renewables had contributed 10% and the total thermal share was 38%. Coal power had contributed 12% of generation. In comparison, in 2012 by end October, contribution from major hydro was only 18%.

Electricity Demand (MW) from 2009 to 2012



4. Total Energy Storage

The first, second and third quarters in year 2012 continued to be dry as it was in 2011. But during the last quarter of 2012 the inflows to hydro reservoirs improved resulting in a record maximum storage of 1072.7 GWh on 29th December 2012. By end September 2013, the hydro storage reached 8,916 GWh.

5. Power Generation

Implementation of new Generation Projects is going ahead as envisaged in the Long Term Generation Expansion Plan (2011 – 2025). The present status of those Projects is as follows.

Hydro Generation Expansion Projects

a. Upper Kotmale Hydropower Project

Upper Kotmale hydro power plant of 150MW capacity constructed with JICA concessionary financing was commissioned in 2012. It has generated since commissioning 770 GWh by end October 2013.

b. Uma Oya Hydro Power Project

Uma Oya Multi Purpose Development Project is implemented by the Ministry of Irrigation & Water Management in coordination with the Ministry of Power and Energy and CEB. The present estimated Capacity of the project is 120MW and the expected annual energy production is 231GWh. The power plant will connect to the national grid through the Badulla Grid Substation.

The cost of the Project is USD 529 million, out of which the Government of Iran through Export and Development Bank of Iran is providing USD 450 million as a loan.

The construction work of the tunnels has started along with the dams. Electrical and mechanical equipment specification is being currently under evaluation and the transmission line environment approval is in progress. The project is expected to be completed by end 2015.

c. Broadlands Hydropower Project

Broadlands Hydropower Project is a Run of River type hydropower project located in the Kelani river basin in the Central and Sabaragamuwa provinces. The planned installed capacity of the Power Station is 35 MW and the expected annual average energy generation is 126 GWh.

Total Energy Generation (GWh) form 2009



The loan agreements for the projects were signed during this year and 85% of the project cost will be financed by Industrial and Commercial Bank of China (ICBC) and the remaining 15% will be financed by the Hatton National Bank of Sri Lanka. The construction work of the project started recently and is scheduled to be completed in 2017.

During this year project was registered under the UNFCCC for CDM registration being the first CEB project to do so.

d. Moragolla Hydro Power Project

A consultancy is presently underway financed by ADB under the Sustainable Power Sector Support II Project for reviewing of feasibility study and preparation of detailed design and tender documents of this project. The detailed design will be completed in 2014 and the 27MW power station is expected to be constructed by 2019.

Thermal Generation Expansion Projects

a. Uthuru Janani Thermal Power Plant

This 24MW, CEB-owned thermal power plant in Jaffana was commissioned at the beginning of 2013, with the implementation of the Project being done in a record time. Addition of this plant enabled CEB to discontinue high cost emergency power plants from the Jaffna peninsula.

b. Puttalam Coal Power Project 900MW

The Phase I of the 900MW Puttalam Coal Power Project has been successfully completed. The 300MW Phase I Lakvijaya plant commissioned in 2011, generated 1404 GWh in 2012 while by end October this year it has produced 1225 GWh.

Since commencement of commercial operation up to the end of October 2013 this power plant has delivered 3,667 GWh to the National Grid. On average it has supplied average 114.5 GWh per month. This power plant now contributes approximately 17.5% of the average daily electricity demand of the country. The availability of the plant during the last 12-months’ period is as follows:

Year 2012 2013

Month Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Availability

% 71 0 88 100 100 91 99 100 100 65

Provincial

Maintenance

work

50

Generation

GWh

12

0 0 150 159 181 150 175 144 120 68 0 76



Phase II of the project which consists of two 300MW coal power plants and a 220kV transmission line of 100 km are nearing completion. First of these plants is expected to be commissioned in December 2013 and the other in April 2014.

c. Trincomalee Coal Power Project 500MW

This project envisages a 500 MW power plant in Sampoor Trincomalee to be developed and operated by a Joint Venture Company of which CEB and NTPC Ltd. of India will each hold 50% of equity share. 70% of the project cost will be raised on debt.

In October 2013, many agreements relevant to the Project, such as the Power Purchase Agreement (PPA), Implementation Agreement (IA), BOI agreement, Coal Supply Agreement etc. were signed by the relevant parties including the JV Company, CEB and GOSL. In addition, the MOU signed with the NTPC and the JV agreements too were extended.

The 500 MW first stage of the Project is expected to be commissioned before end of 2018.

d. High Efficiency Clean Coal Power Development Study

CEB is also studying at present the feasibility for a site for the third coal plant and also the feasibility it being a very high efficiency cleaner type. The Japanese NEDO agency has given a grant for this study which is presently underway.

e. Energy Diversification Enhancement Project (LNG Feasibility Study)

A feasibility study is underway at present funded by JICA, on the feasibility of introduction of Natural Gas for power generation and other uses including industry and transport. They study is expected find the economic and technical feasibility of the fuel as well as a suitable site for a terminal. The report is expected in 2014.

f. Study of Optimal Peak Power Plants

Under a JICA funded grant, a study is presently on-going to find the optimum peak power plants for the Sri Lanka in the long term. Many options for peak power generation are being studied with special emphasis on Pump storage Hydro Power Plants.

6. Renewable Resource Studies

Several renewable resource studies funded by the ADB are ongoing at present. Under one study, the wind resource potential of Mannar Island and the solar potential of Northern area will be studied and data available to a level of investment decision making. The report is expected by end of October 2013.

In the other study integration of renewable resources, the level of absorption and the ensuing technical and cost additions are studied. In addition a renewable energy master plan and a further detailed master plan for development of wind power in Mannar district is underway.



Present Status of Non-Conventional Renewable Energy Sector (as at 01.09.2013)

No Description Project Type No. of Capacity Projects (MW)

1 Commissioned Projects

Mini Hydro Power 119 255.37 Biomass-Agricultural & Industrial Waste Power

2 11

Biomass- Dendro Power 2 5.5 Solar Power 4 1.378 Wind Power 10 78.45 Total - Commissioned 137 351.698

2 Standardized Power Purchase Agreements (SPPA) Signed Projects

Mini Hydro Power 64 149.802 Wind Power 3 21.1 Biomass-Agricultural & Industrial Waste Power

2 4

Biomass-Dendro Power 10 56.77 Biomass-Municipal Solid Waste

1 10

Total – SPPA Signed 80 241.672

7. Generation Rehabilitation Projects

Generation Division of CEB is carrying out several rehabilitation projects to refurbish identified old hydro power plants, in order to minimize maintenance/repair costs and to improve efficiency and reliability of the machines. Obsolete equipment will be replaced with modern equivalents of improved technology, to overcome non-availability of spares for aged components and to ensure successful performance for future years.

a. Rehabilitation of Wimalasurendra and New Laxapana Power Stations Rehabilitation of New Laxapana Unit 1 and Wimalasurendra Power Station (WPS) unit 1 & 2 was completed in 2012. Under this project Control system, cabling, turbine and generators of the New Laxapana units are being replaced. The refurbishment resulted in an increase of more than 5MW in capacity for New Laxapana and it has achieved a 90% efficiency level. In WPS all systems except the turbines were replaced. Outage for New Laxapana unit 2 is planned for 2014.

b. Rehabilitation of Old Laxapana Power Station Project for rehabilitation of Old Laxapana power plants (3 units of 8.33 MW each) commenced in 2009 and was completed in early 2013. Under this project the MIV, controls, cabling, turbine and the generator were replaced. The plant capacity was increased to 9.5MW from 8.33MW. Further the efficiency has increased to 95% from 78%.

c. Rehabilitation of Polpitiya Power Station



Cabinet approval for the rehabilitation contract was received very recently and it is scheduled for 2015. Under the project, MIV, generator and the turbine will be replaced.

8. Transmission Development Projects

Several Project Management Units are operational presently to execute on time the number of transmission projects that are ongoing. Around 20 grid sub stations are either under construction or augmentation at presently. Around 10 high voltage lines are also at various levels of implementation.

a. Kilinochchi - Chunnakam Transmission Project

This project was implemented as a part of the ( ) program launched by the Government to develop the Northern Province. This was completed and opened by His Excellency the president in August this year. Under the ADB financing a 132/33kV, 63 MVA Grid Substation was constructed at Chunnakam and a also 73km, 132kV transmission line from Kilinochchi grid substation to Chunnakam grid substation.

With the commissioning of this transmission line the Jaffna peninsula was reconnected to the national grid after more than 25 years. The new transmission line along with the new CEB thermal power plant in Jaffna, has ensured that the customers in the Northern areas no longer have to face power cuts.

b. Transmission System Strengthening Grid Substations Project

This project is one of the four projects funded by the Asian Development Bank, under their Loans 2518–SRI/2519–SRI (SF) - Clean Energy and Access Improvement Project the contribution for this project being US$ 33.1 million.

There are three components under the project where three new grid substations are to be constructed and several others would be augmented. The three grid subs at Naula, Maho & Pallekelle for which the contracts were signed in 2010 are nearing completion with 85% physical progress and would be commissioned before end of the year. While the augmentation contracts all of which were signed in 2013 would be completed in 2015.

c. Transmission System Strengthening (Transmission Lines) Project

This is the second project to be funded by the ADB - Clean Energy and Access Improvement Project. The scope consists of construction of 132 kV transmission lines from Galle to Matara, Puttalam to Maho & Ukuwela to Pallekelle. This project too would be completed by end of this year and at present physical progress is 98% and the Puttalam-Maho line is completed.

d. Transmission System Strengthening (Eastern Province) Project Asian Development Bank funds US$ 25.2 million for this project under the Loans 2518–SRI/2519–SRI (SF) - Clean Energy and Access Improvement Project.

New 100 km, 132 kV transmission line are being constructed from Habarana grid substation to Valachchena grid substation under the Lot B of this project. Lot A covers the augmentation of Valachchena and Ampara grid substations.



Lot A & Lot B contracts were signed in March 2011 and November 2010 respectively. Lot B the transmission line work is fully completed and the entire project would be completed by end of the year.

e. Augmentation of Grid Substations for Absorption of Renewable Energy Project This is the fourth project to be funded by the above ADB Clean Energy and Access Improvement Project. Using these funds, a new 132/33 kV, 63 MVA grid substation at Mahiyanganaya is being constructed and the existing grid substations at Seethawaka, Balangoda, Badulla, Nuwara Eliya and Ukuwela are being augmented and work is completed.

Government provides finances for the balance work of this project worth of LKR 1361 million. Under this phase, existing grid substations at Ratnapura, Wimalasurendra, and Rantambe are being augmented by increasing their power transfer capacities and the Ratunapura grid was completed recently and the total physical progress is 98%. The 132 kV transmission line of 21 km line under this project to interconnect Rantambe and Mahiyanganaya grid substations has been completed.

f. System Control Centre Modernization Project

This too is funded by ADB’s Clean Energy and Access Improvement Project. This project is based on a Feasibility Study made for System Control Centre in year 2006, and consists of two packages: Package A- Construction of a National System Control Centre including SCADA and Communication Systems and Package B- Replacement of Existing Earth Wire with Optical Fiber Ground Wire (OPGW). The estimated cost of the project is approximately US$25million and is funded by ADB.

The procurement process for Lot 2 of package A was completed and tender awarded in early October 2013 while the evaluation of Lot 1 is completed. It is expected the package A would be completed by end 2013. With regard to Package B the major work is almost complete and would be completed by end of the year while Lot B-2 too would be ending very shortly.

g. New Galle Power Transmission Development Project Asian Development Bank loan provided US$ 21.6 million for the identified scope of the New Galle Power Transmission Development Project.

New Galle grid substation will be constructed under the Lot A contract of the project. Lot B contractor will construct 132kV transmission lines from Ambalangoda Grid Substation to new Galle Grid Substation.

Agreements for Lot A & Lot B were signed with the selected contractors in August 2012 and in construction has started in 2013 as planned. It is expected to complete the Project in end 2014.

h. North East Power Transmission Development Project In order to further improve electricity supply in Eastern and North Central Provinces ADB is financing US$ 55 million for the identified scope of the North East Power Transmission Development Project. Contracts were signed for Lots A, B, and C in 2012 and it is expected to complete by end 2014.

This project has been divided into the following three Lots:

Lot A: Construction of three new grid substations at Monaragala, Polonnaruwa & Vavunathiev, and Augmentation work of existing grid substations at Ampara & Rantambe – Physical progress is currently 28%



Lot B: 132kV transmission lines from Mahiyangana to Vavunathiev, Uhana to Ampara and Medagama to Monaragala. Construction is in progress at 51% Lot C: Construction of the second 220 kV circuit of the New Anuradhapura – Kotmale transmission line – 69% physical progress

i. Clean Energy and Network Efficiency Improvement Project This is a new project to be funded by the ADB and its scope includes construction of Grid Substation in Mannar, and transmission connections to Vavunia and Anuradhapura mainly to facilitate transmission of wind power. In addition construction of new Polpitiya, Kegalla and Padukka grid substations and several related lines too are included in the scope. For several components in these projects, bids were invited in September 2013 and the project is expected to complete in year 2016.

9. Distribution of Electricity

CEB accounts for over 88% of electricity distribution in the country while the rest is by Lanka Electricity Company Ltd. (LECO), a subsidiary company of the CEB. The electrification level in the country is about 95% and the goal is to achieve 100% electricity by 2013.

According to 2012 statistics, the CEB distribution system comprises of more than 24,000 Substations fed by a network of around 25,000 km of medium voltage lines. By end 2012 there were 204 Customer Service Centres and 50 POS counters for bill payments.

The transmission and distribution loss had been brought down to 11.3% in 2012. This is expected to further decrease.

During 2013, CEB has taken some revolutionary steps to facilitate customers. A drive-through bill payment system, and a “ ” automated cash payment system were introduced at the Western Province South I as a pilot scheme. A Door-Step Service connection scheme too was introduced where a prospective customer can obtain a service connection just with a telephone call to the Call Centre, without ever visiting a CEB office.

An Outage Management System (OMS) based on a Call Centre was designed by in-house staff which won the gold award in the 2013 National Best Quality Software Awards (NBQSA) competition organized by the British Computer Society, in the “In-House” category. It was nominated for the Asia Pacific Information and Communication Technology Awards as well. This OMS is presently in use at the Western Province.

a) Electricity Distribution Development Project Dehiwala - Mt.Lavinia

Under distribution development activities in urban areas, a project to install underground cables to replace some of the over head distribution system of Dehivala-Mt Lavinia area has been commenced and the details of activities are indicated below :

Detailed field surveys of implementation of stage I works of UG Cable Network Data collection for preparation of comprehensive work estimation was completed. Also the approval from SLLRDC for cable carrying bridge design (10.5m in length) at Nedimala was obtained.



Field investigations and estimations of 50 distribution substation scheme for conversion of LV bare lines into Aerial Bundle Conductor Lines and site clearance works including shifting of MV and LV equipments in sites under constructions of radial substation buildings-State I were done. A proposal has been submitted to JICA team to obtain necessary fund to carry out the project

b) Greater Colombo Transmission & Distribution Project

Under the accelerated urban development programme of the government, several high rise commercial and other buildings are projected in the new future. In order to cater these projected demand in the Colombo City, especially for the development activities planned in the vicinity of Colombo Port and Colombo 7, CEB formulated enhancement of transmission and distribution capacity in these areas and a Project Management Unit was established in 2013.

JICA is providing a total of JPY 16 billion, while the GOSL contribution for the project is Rs. 5 billion. The scope includes three new indoor Grid Substations with a major Grid Substation in the Port premises. Additionally, several 220 kV underground cable transmission lines are planned under this project. This includes cables from Kerwalapitiya and Kelanitissa to the new Port Grid Substation and from it to the other new Grid Substations as well. Several other Grid Substations in Colombo City will be augmented under this Project. At present, procurement of Consultancy is in progress and the target date for completion is by end 2016.

Overview of Electricity Supply in 2014

From a wet year to a dry year, CEB’s expenditure for generation significantly varies with the amounts of electricity generated from thermal power plants of both CEB and IPPs. The volatility of fuel price, which directly impacts the operation of thermal power stations, too affects financial soundness of the enterprise. However, the demand for electricity is growing at a rate of about 4.5 % per year which requires additions of about 100 MW of capacity to existing installed capacity each year. CEB also needs large investments for the development of Transmission and Distribution network. The Government policy on electrification of rural areas and to bring the national electrification level to 100% in the year 2014 (through the Grid to 98% and 2% through off-grid, using renewable energy), requires expanding the present electrical network to cater for demand from those new customers. Rural Electrification, being directed towards improvement in the quality of life of the rural people and economic development in those areas.

Customer Services

Improving customer service will be a priority for CEB. CEB has proposed a new strategy of Transforming CEB to be the most customer friendly utility in Sri Lanka” and has included several actions in the Corporate Plan 2014 -2018.

Through a twofold approach of focusing on employee attitudes (customer care) and technical matters (supply quality) this will be achieved in the context of reaching 100% electrification expansion.

2014 was declared as the year of Customer Service Excellence and CEB aims to be the best customer oriented public sector organization by year 2015 through a vigorous program



involving training of staff, educating customers on electrical safety and demand side management thus improving the image of CEB.

Major Projects

300 MW Lakvijaya Power Plant at Puttalam is the Stage I of the first Coal fired Power Plant Project established for electricity generation in Sri Lanka, which is operation from 2012. S

tages II & III comprises of 300 MW each is expected to be completed and commissioned in early 2014. Efforts are being made to advance the commissioning of Stage II in 2013 at the time of preparing this Report.

Upper Kotmale Project comprises of five project packages and two packages have been completed in 2012 to commence the commercial operation of the plant. Balance three packages are being completed and expected to be completed in year 2014.

Uma Oya multi-purpose Project and Broadlands Hydro Power Project were commenced and at various stages of the construction. 500 MW Trincomalee Coal Power Plant expected to be constructed jointly with the NTPC of India and CEB of Sri Lanka. It is at the financing stages and expected to commence the construction in 2014.

Development of the Transmission network in Sri Lanka is carried out by the Projects Division of CEB. Following projects are now under various stages of implementation and will be continued in 2014

Greater Colombo Transmission & Distribution Loss reduction Project (GCT&DLRP)

Clean Energy & Access Improvement Project: Transmission System Strengthening Transmission Lines Project Additional Works (ADB funded)

Clean Energy & Access Improvement Project: Transmission System Strengthening Eastern Province Project Additional Works (ADB funded)

Sustainable Power Sector Support Project - New Galle Power Transmission Development Project.

Sustainable Power Sector Support Project – North East Power Transmission Development Project.

Clean Energy and Network Efficiency Improvement Project Package 1- Mannar Transmission Project.

Clean Energy and Network Efficiency Improvement Project Package 2 - 132kV Transmission Project

Clean Energy and Network Efficiency Improvement Project Package 3 - 220 kV Transmission Project

Habarana-Veyangoda 220kV Transmission Line & New Habarana Grid Substation and Habarana-Sampoor 220kV Transmission Line Project.

Augmentation of the Transmission Network and construction of selected facilities are being handled by the Transmission Construction Projects Branch under the Projects Division. Following works are now at various stages of implementation and will be continued in 2014

Augmentation of Hambantota Grid Substation



Augmentation of Sri Jayawardenepura Grid Substation

Construction of Sooriyawewa Grid Substation

Implementation of Second Inter bus Transformer at Rantambe Power Station

Installation of Capacitor Banks in Pannipitiya Grid Substation

Developing Clean Energy

Electricity generated from new sources of renewable energy (Non Conventional Renewable Energy, NCRE) such as small hydro, wind, solar and biomass etc., are absorbed under the Standardized Power Purchase Agreements. However this trend has presently been disturbed due to delay in announcing in feed in tariffs for 2012 and 2013. Following are the details of NCRE projects that are to be connected to the grid in the future.

Standardized Power Purchase Agreements (SPPA) Signed Projects

Mini Hydro Power 64 149.802 Wind Power 3 21.1 Biomass-Agricultural & Industrial Waste Power

2 4

Biomass-Dendro Power 10 56.77 Biomass-Municipal Solid Waste 1 10 Total – SPPA Signed 80 241.672

Under Clean Energy and Access Improvement Project, funded by ADB and GOSL, new 132/33 kV grid substations and five existing grid substations will be augmented, to improve grid access to the renewable energy projects.

Institutional changes

To achieve its objectives envisaged, CEB will fully implement the transformation of the functional Divisions (i.e. those directly involved with core functions) as follows. Action towards the implementation has already been initiated and will be continued in 2014 for the completion.

Generation Division will sell all its output to the Transmission Division under Power Purchase Agreements (PPA) and according to dispatch instructions

IPPs (Independent Power Producers) will also sell all of their output to Transmission Division via PPA’s) according to dispatch instructions

The four Distribution Divisions shall buy adequate energy in bulk from the Transmission Division and sell to retail and Bulk Customers

Transmission Division will provide all power requirements of the distribution system through Power Sale Agreements

LECO will operate maintaining its present status and would buy electricity from the Transmission Division



Most of the following activities are presently taking place under the aegis of the PUCSL, in consultation with the respective Licensees. However, non-implementation of the Road Map for Tariff Restructuring and unavailability of the approved subsidies are the matters of concern of the Licensees. At least, a token commitment to the process should be exhibited by PUSCL, and the Licensees should urge the PUCSL for compliance. These activities are:

The transfer prices between Generation and Transmission Division’s shall be worked out on top down principle (cost pass-through) based on Generation Division cost structures. The transfer prices between IPP and Transmission Division shall be in accordance with the PPAs, entered in to through competitive bidding. The bulk supply tariffs for electricity transfers from Transmission to Distribution shall be determined on bottom-up basis, based on revenue requirements of Transmission Division, Distribution Divisions and debt service. Transmission Division shall prepare monthly statements of bulk power trading operations and compensation plan to be forwarded to the PUCSL and the Corporate Strategy Division. The respective Divisions shall establish business arrangements for operation of PPA, PSA and any other inter-divisional service agreements. Transmission Division shall develop, publish and operate a transparent dispatch system for dispatching of generating plants belonging to the Generation Division and IPPs.



Lanka Electricity Company Limited


Ministry of Power & Energyi i f &Ministry of Power & Energyistry of Power & EnergyLanka Electricity Company Limited

Introduction LECO was incorporated in 1993 under the Companies Act no. 17 of 1982, with the primary objective to carry out the business of maintenance, improvement, supply, development, expansion, generation, distribution and sale of electrical energy in LECO franchise area laid along the coastal belt of the Western Province and part of the Southern Province.

Vision Enjoy being the light for lives of people through innovative eco-friendly business.

Mission To provide the best energy solutions to the society through continuous innovations. Company Core Values

Be eco-friendly Satisfying our customer through innovative services Commitment towards customer satisfaction Productivity through competent and contented human capital.

Company’s Long Term Goals

Establish value chain system to add value to the product. Transform LECO from a distributor of electricity to energy related diversified business. Develop innovative products by strengthening research and development in all activities of LECO. Act as a catalyst in building a competitive energy market. Maximize shareholders’ wealth through contented workforce.

The Company’s achievement exhibit our performance and the commitment made towards the high quality of service to the stakeholders.

Performance- 2013 and Programs for 2014

Briefing on Key indicators Upto 2014 2007 2008 2009 2010 2011 2012 Jul-13 Forecast Consumers 445,386 459,548 469323 473079 491042 500783 503789 510951 Sales GWh 1,099.03 1,071.25 1051.62 1123.02 1183.77 1216 706 1264 Revenue Rs Mn 11,517 13,229 13,065 14,027 18,423 18,941 11,815 24,225 Distribution Losses ( 11 Kv) %

4.74 5.03 5.81 6.28 5.4 4.56 4.57 5.7

Consumers /Employee

347 338.4 353.94 353.57 338.42 342 341 344

Reliability of (hrs/Con/year)

19.67 21.74 22.61 24.09 20.93 21.68 14.85



Record of Distribution as at July 2013

Asset Units Target Actual Balance Category For 2013 Performance to be July-13 completed 11KV UG km 3.05 2.96 0.09 11KVOH+ LV km 11.65 0.295 11.36 Dist Sub 11 kv Nos 56 7 49.00 Bulk Sub 11kv Nos 60 21 39.00 Switching LBS Nos 53 53.00 LBC Nos 1 LV Dist Sys km 66.40 0.25 66.15 Consumer Service Lines

Nos 13475 2297 11178

11kv Auto Reclosures

Nos 20 0 0

11 Kv Sectionalisers Nos 0 0 0

Projects and Progress Operations

Expansion and rehabilitation work in LECO is based on the geographical demand .It is a continuous process handled by each Branch.

LECO provides a better and reliable supply to customers through an efficient distribution system. Quality improvement programs are continuously being introduced to provide an improved service. Quality management system as per the ISO 9001:2008 standard is in progress. Development

The execution of proposed Clean Energy and Access Improvement Project for implementing 5 Primary substations in LECO franchise area is almost complete.

The efficiency improvement of street lighting project has been completed and its pilot project is completed. The ADB funded project has commenced, the benefits of this project would be accrued in the forthcoming future.

Improvement in the Information technology infrastructure to increase efficiency and improve customer satisfaction.

A new project is being implemented to modernize the Distribution Control Center.



LTL Holdings PVT Ltd


Ministry of Power & EnergyMi i f P & EMinistry of Power & Energyistry of Power & EnergyLTL Holdings PVT Ltd

Introduction. In the year 1982, “Lanka Transformers Limited” was established as a joint venture of Ceylon Electricity Board (CEB) with Low & Bonar International (Holdings) Ltd, (a then internationally renowned Transformer Manufacturers) which has now transformed into “LTL Holdings (PVT) Ltd”. Consequent upon the diversified business activities carried out through it’s subsidiaries, thus not only strengthened stability of the Company to compete with International Markets but also engraved the image of the Company as one of the reputed and renowned dynamic Engineering enterprises worldwide. Presently, the Company has engaged in Manufacturing of Power Transformers to meet the entirety of Local demand & cater to International demand as well. Construction & Service Industries spanning across the fields of Electrical, Mechanical, Civil Engineering and hot-dip galvanizing/steel fabrication. The International Presence of the Company, competing with International Power Sector Giants, has brought a unique recognition as an internationally famed Engineering Firm, undertaking large EPC (Engineering, Procurement and Construction) Contracts for Major Power Projects, including High Voltage Transmission Lines (overhead & underground), Grid Substations, and Power Generating Stations both in Sri Lanka and Overseas. As the power and energy sector forms an integral part of the development of economy of a Country in particular and the world as a whole, LTL Holdings PVT Ltd, having identified/considered the potentials & immense opportunities worldwide, with it’s proven records of success, secured major power sector EPC Contracts, for construction of Thermal Power Plants, High & Low Voltage Transmission/Distribution Lines, Construction of Grid Substations and Supply of Power Distribution Transformers, etc in Bangladesh, Maldives Islands, Oman and South African Countries, such as Uganda, Kenya & Ethiopia etc., during the year under review, thus LTL Holdings PVT Ltd emerged as one of the successful foreign exchange earner for Sri Lanka. The Government of Sri Lanka has given priority for development of sustainable energy and initiated/encouraged setting up of eco-friendly Wind Power Plants and Solar Power Plants in the Northern and North Western coastal belt of Sri Lanka. Accordingly, 01 (One) Wind Power Plant with a capacity of 9.8MW was completed and successfully connected to the national grid of the CEB in Puttalam. Extensive in-depth studies are being made to take part in the Wind Power Farm Project and Solar Power Plant Projects, the former in Mannar whilst the latter in Kilinochchi of the Northern Province of the country, to be launched by the CEB. As the economic value addition and environmental improvements coupled with social benefits plays a decisive role and considerable back up for accelerated development of the Country, LTL Holdings PVT Ltd has always given top priority to community out-reach and eco-friendly efficiency not only in the best interest of the upliftment of human living standards but also the Country as a whole.



PERFORMANCE FOR 2013 & PROGRAMMES FOR 2014 Performance of LTL Holdings Group of Companies during the Financial Year including Financial Highlights 2013 A summary of the Financial Performance compared to previous years are shown below:-

PERIOD F/Year 2012/2013

F/Year 2011/12

F/Year 2010/11

TURN OVER (Rs.Million) (Rs.Million) (Rs.Million) 6,642 7,383 4,390 7,090 6,433 4,602 4,052 0 1,085

TOTAL 17,784 13,816 10,077 PROFIT BEFORE TAX

3,518 3,937 1,627 1,255 1,084 1,280

223 0 819 TOTAL 4,996 5,021 3,726

There had been a significant improvement in the turn over for the period under review where an increase of 28.72% has been recorded over the last year. However, profit earned during the period in comparison to the corresponding period last year, reveals a marginal reduction of .55%. A noteworthy improvement was seen in the profit levels, surpassing the previous year’s record by 15.77% with an increase of Rs.171 Million under Power Generation, despite having stopped the operation of “22.5MW Lakdhanavi Thermal Power Plant with effect from 19th November 2012, consequent upon the expiration of the PPA with CEB. The Company has submitted several options for extension/renewal of the PPA as per the requests made by CEB, which are yet to be considered. The rest of the Power Plants are operated and maintained at optimum level, providing the guaranteed energy to meet the CEB’s demand. The Company has been successful in earning a profit of Rs.223 Million under “Construction Services” during current year with it’s diversified activities in the construction field.



Programmes for 2014 1.0Operation & Maintenance of Power Plants:

Heladhanavi 100MW Power Plant Yugadhanavi (Kerawalapitiya)

The following targets with regard to the Thermal Generation Plants operated and maintained by the Company are planned to be achieved during year 2014.

Power Plant Target for 2014

Heladhanavi Minimum Guaranteed Energy Amount of 698.4 Gwh

Yugadhanavi (Kerawalapitiya)

Annual availability of 70%

As stated elsewhere in this report, the 22.5MW Lakdhanavi Thermal Power Plant has been closed down for operations with effect from 19th November 2012, as the PPA entered into between the CEB and Company has expired on the said date. As advised by the CEB, several options for renewal of the PPA were submitted to CEB for consideration and their positive response is awaited.

2.0Manufacturing and Marketing of Transformers:

Transformer Manufacturing Plant at Angulana, Moratuwa



Winding Assembly Core-Building

Vacuum Chamber Low Voltage Winding Machine Having witnessed a steady demand growth for local and global supply, LTL Transformer facility has been revamped/upgraded with the introduction of modern sophisticated technology to carry out High Voltage Winding Process, which is commercially known as “Strip or Graded Insulation Method”. This process will increase consistency of the HV Winding quality and enable the design team to guarantee the performance parameters with better safety margins and thereby increase the comparativeness in the evaluation process of the offers. This new technology has a significant impact on the cost of production as the material consumption for transformer manufacturing is controlled with hardly any wastage, whilst inventory performance is increased due to minimum insulation type requirement in the process of production. The production recorded for the year under review are as follows:

a) No. of Transformers supplied to CEB .. 1,337 Nos. b) No. of Transformers supplied to LECO .. 182 Nos. c) No. of Transformers supplied private customers 99 Nos. d) No. of Transformers exported to other countries 166 Nos.

Total Production 1,784 Nos. Improvements Programmed for 2014

a) Improve the product capability upto 5MVA b) Augment/equip Test Department to test 5MVA Transformers c) Re-locate Shot Blasting and Powder Painting Unit to Sapugaskande to

accommodate machinery/equipment and to concentrate on core competency area.

d) Expansion of International Market e) Improve labour productivity by providing intensive training opportunities to

workers thus converting them as multi-skilled workers.



Largest Export Order for Transformers

A largest ever recorded Export Order was received from Ethiopian Electric Co Ltd, Ethiopia, to the value of over SLR.1 Billion, funded jointly by World Bank and African Development Bank. The first consignment is scheduled to be exported on 27th September 2013 under the aegis of the Hon. Minister, (Mrs) Pavithra Wanniarachchi, Ministry of Power and Energy.

3.0Steel Fabrication Plant at Sapugaskande

The fabrication Plant played a pivotal role in fabricating steel buildings for 24MW Jaffna Thermal Power Plant, constructed by the Company during the year under review. JAFFNA POWER PLANT FABRICATION WORKS – 2013 1. Fabricating Steel buildings belonging to Jaffna Power Plant

(a.)Control Building - weight 51.11 MT (b.) Engine Hall - weight 100.88 MT (c.)Workshop Building - weight 64.21 MT (d.) Fuel Unloading shed - weight 8.44 MT (e.)Administrating Building - weight 40 MT

Fabrication works at LTL Fabrication yard

At Jaffna Site



2. New Machinery Installation Works

In order to cope up with the works in hand, the Company has purchased the following machinery/equipment to meet the demand, whilst ensuring the improved quality of end-products and enhanced productivity/output.

(a.) CNC Plate Punching machine install & Commissioning - USD 70,000/= (b.) CNC Semi Automatic Angle section punching machine -USD 50,000/=

Cover Plate punching in CNC plate Machine

CNC angle punching machine

Transport Arrangement at Jaffna Power PlanSite


Ministry of Power & Energy 3. Improvement earmarked for 2014

a) Installing CCTV camera system to cover all processing area and facility and

premises/boundaries.

b) The Supply and Galvanizing of hardware items for 33kV transmission line to overseas projects (Uganda and Tanzania) is programmed for 2014.

4.0Galvanizing Plant at Sapugaskande

Sapugaskande Galvanizing Plant – Galvanizing Bath

The production of galvanized items is tabulated below:- . 2013 2012 Variance a) Ceylon Electricity Board (CEB) 3,480 MT 4,906 MT 1,426 MT (-) b) Private Organizations 9,303 MT 7,836 MT 1,467 MT (+) Total Production 12,783 MT 12,742MT 41 MT(+) The Company has been able to run the plant to it’s full capacity, having extended the services to private customers, which helped overcome the deficit in the production levels for CEB during the year under review. Arrangements are being made to install a New Crane System to the facility, and introducing systems to 100% neutralizing the waste acids and re-cycling of residue water. Having witnessed a lucrative market forthcoming from Private Customers and LTL Holdings entering into international markets, the Company considers seriously the augmentation of the facility with sophisticated machinery/equipment in the years ahead on a phased out programme basis.

5.0Liquefied Natural Gas (LNG): The proposal presented to the Ministry of Power & Energy incorporating an action plan for the implementation of the project to supply LNG to Sri Lanka is still under studies at a higher level in the Government to initiate further action on this matter.



6.0 Mini Hydro Power Plants:

The proposed Mini Hydro Power Plant of 3.5MW Capacity in Uganda is under comprehensive study.

7.0 Wind Power Project

The Company has successfully completed a Wind Power Plants at Kalpitiya in Puttalam with generation capacity of 9.8MW, under the subsidiary name of Pawan Danavi Wind Power Plant. The plant was successfully energized and connected to the National of Grid of the CEB in 2012.

The Company has expressed it’s interest in participating in the Wind Power Farm to be established in North Western Coastal Lines (Mannar District), envisaged by Ceylon Electricity Board (CEB) in the years ahead.

8.0 Construction Services & Overseas Assignments

The company continued to make progress in the field of Construction activities, especially undertaking Infra Structure Development Projects related to Transmission Lines, installation and augmentation of Grid Substation etc., water supply schemes in Sri Lanka and overseas.

52.2 MW Raj-Lanka Power Plant at Rajshahi, Bangladesh

Lakdhanavi Limited, one of the subsidiaries of LTL Holdings PVT Ltd has been successful in securing contract in Bangladesh, amidst strong competition from internationally renowned Power Sector giants, for the construction of 52.2MW Thermal Power Plant at Rajshahi. The Project value is over USD 49 Million. The constructional works are in progress under the wield of our Engineers at present.



Work in progress at site Plant upon completion 24 MW Jaffna Thermal Power Plant at Chunnakkam in Jaffna

24MW Jaffna Thermal Power Plant at Chunnakam, Jaffna was constructed under the Accelerated Power Development Programme lauched by His Excellency, the President under “Uthuru Vasanthaya” Power Development Programme. The Power Plant was completed and brought into operation well within the period of the project completion.



Lanka Coal Company (Private) Limited


Ministry of Power & EnergyMinistry of Power & Energyistry of Power & EnergyLanka Coal Company (Private) Limited

Introduction Lanka Coal Company (Private) Limited (LCC) was incorporated on 23rd January 2008 under the Companies Act, No7 of 2007 subsequent to a Cabinet Decision to establish an organization for procurement of Coal for Coal fired thermal power plants in Sri Lanka. The share holders of the Company and their contribution towards the paid up capital is as follows. Ceylon Electricity Board - 60% The Treasury -20% Ceylon Shipping Corporation Ltd. - 10% Sri Lanka Ports Authority - 10% The paid up capital as at 30th September 2013 is Rs.20,000,000.00

Performance- 2013 and Programs for 2014

1. Performance in the Year – 2013

Procurement of Coal

LCC has supplied 1,730,395 MT of thermal coal and 54,557 MT of Deaf Coal to Lakvijaya Power Plant in the following manner up to 30-09-2013.

Thermal Coal Deaf Coal

2010 – 68,000 19,892

2011 – 455,580

2012 – 739,948 34,665

2013 - 466,867

Total – 1,730,395 54,557

Activities to be completed within the year 2013

Supply of another seven (12) ship loads of thermal coal totaling approximate quantity of 720,000 metric tons.



Other activities

Launched the procurement process to meet enhanced demand of coal with the completion of 2nd phase of Puttalam Coal Power Project. An agreement was signed with Sri Lanka Gateway Industries (Pvt) Ltd to obtain Terminal Services to deliver coal to Proposed 2 x 250MW Coal Power Plant at Sampur, Trincomalee. The draft of the Coal Supply Agreement between Lanka Coal Company (Private) Limited and Trincomalee Power Company Limited has been prepared and to be signed in the near future. The draft of the Coal Supply Agreement between Lanka Coal Company (Private) Limited and Ceylon Electricity Board has been prepared and to be signed in the near future. With a view of supplying coal to private sector industries discussions are being held with some industrialists and traders. Participated by running exhibition stalls at Deyata Kirula - 2013 Exhibitions to educate the general public on coal and its usages.

2. Programme for year – 2014

Continuous and uninterrupted supply of coal to Lakvijaya Power Plant -

It is expected to supply 2,250,000MT of coal during the year for 900MW Lakvijaya Power Plant. Supply coal requirement for private sector industries. Propagate coal as an alternative for oil and fire wood with a view of reducing production costs and prevention of deforestation. Observation of coal market price fluctuations for price adjustments of existing coal supply agreements and for future price determinations.



Sri Lanka Energies (Pvt) Ltd


Sri Lanka Energies (Pvt) Ltd

Sri Lanka Energies (Pvt) Ltd had been incorporated in 1st quarter of 2011. This has started operations in January 2012 at No. 2-126 BMICH, Bauddhaloka Mw, Colombo 7. The main objective of this company is among other objectives of

, and . Company is operating with Rs. 47.91 million provided by the CEB.

a. Manufacturing of Cement Blocks/ Bricks using the Ash products of Lak Vijaya Coal Power Station to be started shortly. The factory building is completed.

b. The construction of Lower Samanalawewa Mini Hydro Power Project of 1.1MW capacity will commence by Novmber 2013.

c. Provisional Approval of the SL SEA is pending for the two mini hydro power potentials of about 5.1 MW capacity. The environmental clearance process will be started once the PA s are issued.

d. 2 mini hydro potentials of about 4 MW capacity will be developed, as a joint venture with LECO. The preliminary studies are completed and approval is expected to commence in fourth quarter of 2013.

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