Portfolio - Resource Management Associates (Pvt) Limited

Power Generation and Economics Renewable Energy DevelopmentFeasibility Study on a 5 MW Wood-fired Power Plant at Puttalam Cement Works

Holcim (Lanka) Limited owns and operates the only fully integrated Cement manufacturing plant in Sri Lanka. Holcim decided to develop a captive power plant to meet the critical loads in the factory thus enhancing the overall plant reliability level. After studying several fuel options in the pre-feasibility study conducted by RMA, Holcim requested RMA to conduct the feasibility study on a wood-fired power plant.

Based on a detailed analysis of the factory power and energy demand, RMA recommended a conventional steam power plant of capacity 5 MW producing 35 GWh of electricity annually. On the fuel supply side, RMA conducted comprehensive studies to select the most promising short rotation crops for wood fuel, potential for growing them the region and developed the conceptual design of a wood fuel supply chain. Conceptual design of the power plant includes fuel handling system, heat & mass balance, sizing and specifying the boiler, steam turbine, generator and associated auxiliaries. A comprehensive financial model was developed to evaluate the commercial feasibility of the project. RMA also addressed the socio-economic issues and assessed the project risks. The feasibility report has been accepted by Holcim.

Due Diligence on Energy Sector Projects Power Generation and EconomicsLenders’ Engineer for 250 MW Independent Power Plants (IPPs)

RMA was selected as the Lenders’ Engineer by a consortium of Sri Lankan banks financing the construction of 250 MW of Independent Power Plant (IPP) capacity in four power plants in Sri Lanka. The projects were promoted by established Sri Lankan Companies. The power plants use diesel engines operated of heavy fuel.

The role of RMA was to conduct due diligence on all the technological aspects of the four power plants. RMA assisted the Banks to review the Power Purchase Agreement, Implementation Agreement and the Fuel Supply Agreement. RMA conducted supervision of the erection, testing and commissioning of the power plants on behalf of the Banks.

The total investment on the power plants were about 160 million US$, of which about 110 million US$ was financed through a syndicated long-term loan by the Consortium of Banks. The first power plant entered commercial operation in March 2002. The second power plant entered operations in April 2005. Power plants are operated by Wartsila of Finland under an Operation and Maintenance contract with ACE Power Generation and Caterpillar Power Generation Systems Ltd. The projects were developed on a Build, Own and Operate (BOO) basis under a 10-year Power Purchase Agreement with Ceylon Electricity Board.

Electricity Utility Planning Renewable Energy DevelopmentTechnical and Financial Proposal for a 20 MW Wind Power Plant in Narakkalliya, Sri Lanka

In December 2002 Ceylon Electricity Board (CEB) requested proposals from the private sector for establishing a 20 MW wind power plant on Build, Own and Operate basis. Senok Trade Combine Limited, which is one of the short-listed companies, contracted RMA to conduct necessary studies and prepare the technical and financial proposals for submission to CEB.

RMA conducted detailed wind data analysis using site-specific short-term wind measurements and long-term wind data from a nearby meteorological station to evaluate the site wind energy potential. Using the power curves of several wind turbine generators, RMA established the optimum machine and layout for the site. RMA also carried out the design of the 26 km long 33 kV transmission line and costing of civil works as per manufacturer’s foundation designs.

RMA conducted detailed financial analysis on the project and assisted the client to arrive at a competitive tariff.

Due Diligence on Energy Sector Projects Power Generation and EconomicsEconomic Feasibility of Expansion of Tashkent Power Plant in Uzbekistan

Uzbekistan has a mixed hydroelectric and thermal electricity generating system, dominated with natural gas. After experiencing a decline in the demand for electricity during early years of independance from the Soviet Union, the Uzbek system is experiencing a surge in demand once again. Some ageing thermal power plants have come to the end of their economic life, displaying poor fuel efficiency and reliability.

RMA was commissioned to conduct the economic evaluation of the proposal to expand the Tashkent Power Plant in Uzbekistan. The study was conducted for Mitsubishi Reasearch Institute, Japan, as a part of their due deligence on behalf of the Japan Bank for International Cooperation (JBIC). JBIC was to finance the power plant expansion project.

In this study, the entire hydro-thermal power generating system of Uzbekistan was modelled to include existing and committed power generating facilities, and the expected growth in demand for electricity over the next 20 years. The proposed expansion for the Tashkent Power Plant was then included to examine whether there will be economic benefits to the system.

Energy Economics & Pricing Power Generation and EconomicsPricing of Electricity from Independent Power Plants in South Asia

RMA was selected by US Agency for International Development and Deloitte, Inc. of USA to conduct a study on the pricing of electricity produced from Independent Power Plants (IPP) in Sri Lanka. This was part of a study of 20 private power plants in South Asia, to ascertain the competitiveness of tariffs offered by IPPs in relation to utility/Government projects.

Three IPPs in Sri Lanka who agreed to participate in the study were examined in detail for their investments, operating costs and tariffs. Similarly three Government/Ceylon Electricity Board projects of comparative technology were analyzed to calculate the off-take price and any adjustments required to represent any concessions received.

The study included the development of financial models for each selected private or government project, technical evaluation to assess their operating performance, making adjustments to account for concessions, and arriving at an adjusted levelised price.

OtherDesign and Development of a 200-Watt Wind Turbine for Battery Charging

Nearly 40% of Sri Lankan households do not have access to electricity supply through the national grid. Many of them are located in rural areas where the grid extension is often found to be uneconomical. This is primarily due to the low energy demand in most rural households coupled with the high cost of extending and maintaining the grid supply lines.

In 1998, Intermediate Technology Development Group (ITDG) launched a project to develop a small battery charging wind generator, which could cater to the needs of rural households. Design and development of this machine was contracted to RMA.

In June 2000, the first prototype was fabricated and subjected to a rapid assessment of the performance of the rotor and speed control system using the technique of Controlled Velocity Testing (CVT). This was performed in Ussangoda, a flat open tract of land overlooking the southern coast. A wind data logger and digital power monitoring meters were used to collect the data. The system consists of a two bladed wind turbine that drives the 200W Permanent Magnet Generator (PMG) of “air gap type”. AC supply from the PMG is rectified and used to charge the battery. The battery supplies AC electricity to the household through a 400W inverter.

The prototype machine is now running in a southern village called Andarawewa, Once the testing phase is completed, RMA will develop the production model and train local workshops in the manufacture of this wind turbine.

Renewable Energy DevelopmentIntegration of Wind Energy into the Electrification Networks in Outer Islands in Maldives

All outer islands in the Maldives are electrified using diesel-based power plants. Cost of imported fuel and its transportation to outer islands accounts for a significant component of the local electricity tariff. Asian Development Bank (ADB), which is studying the overall development of the outer island electrification systems in the Maldives, contracted RMA to study the feasibility of integrating wind generators into island electricity networks.

RMA expert visited some of the potential islands along with the ADB Team and had extensive discussions with the local power system operators on this subject. Main difficulty experienced by RMA in this study is the lack of good quality wind data for assessment of the wind energy potential in islands. RMA accessed regional wind data and compared them with locally available data to make preliminary estimates of the wind power plant performance in the island wind climate. Subsequently, RMA assisted ADB in the preparation of a Project Brief for submission to the Global Environmental Facility (GEF) seeking grant funding for a wind and solar-based pilot project in the Maldives

Renewable Energy DevelopmentDesign of a 220 kW Small Hydro Power Plant for the Kissizi Hospital in Southwest Uganda

The Government of Uganda has proposed “Energy for Rural Transformation Programme” for World Bank assistance. The key objectives of this programme are to improve the rural quality of life and facilitate significant rural non-farm income by accelerating rural electrification using Uganda’s indigenous, renewable energy resources.

Expansion of the hydroelectric capacity of the small hydro plant in Kisizi Hospital is an investment that falls under the sub-component 2 of this programme. Kisizi Hospital, which is associated with the Church of Uganda, is located in the Rukungiri District in Southwest Uganda. The hospital has a strong presence in the area, with a campus of some 50 buildings from which a wide variety of community services are offered in support of their mission to address the social and economic, as well as the spiritual and curative needs of the local community.

The hospital has owned and operated a 60kW micro hydro plant since 1986 for its own use and is now interested in expanding its capacity utilizing the full hydro potential of the river Rusoma. The World Bank contracted RMA to carry out the design of this plant. Work done by RMA include:

 Hydrology analysis of river Rusoma.
 Redesign of the existing weir, intake and channel to handle 1000 l/s design flow.
 Sizing of the desilting tank.
 Hydraulic and structural design of the 700 mm penstock
 Writing technical specifications for electro-mechanical equipment.
 Overall project costing.

Renewable Energy DevelopmentWind Energy Resources Assessment in the North Western Coastal Belt and Knuckles Range

Due to its geographical location in the Indian Ocean, several regions in Sri Lanka experience strong to moderate winds during the Southwest and North-East Monsoons. In 1988, the Ceylon Electricity Board (CEB) decided to investigate the potential for use of wind energy for large scale electricity generation. The three-year study covered the south-eastern lowlands, and on completion of it CEB installed a 3 MW pilot wind power plant for research and demonstration purposes.

CEB extended its wind resource studies to the north-western coastal region and Knuckles mountain range with technical and financial support from UNDP/GEF. CEB selected RMA as the National Consultant for the project due to RMA’s in-house expertise in this field.

Scope of the assignment includes,
 Site survey for a network of wind measuring stations over flat land and complex terrain.
 Supervision of wind mast installation.
 Wind data processing.
 Data analysis and reporting

Energy Economics & Pricing National Energy Policy & Planning Renewable Energy DevelopmentStudy on Small Power Purchase Tariffs, Sri Lanka

The World Bank initiated the Energy Services Delivery (ESD) project in Sri Lanka to support the development of renewable energy-based power generation. ESD project provided substantial amount of financing for small hydropower plants operating in the grid-connected mode selling electricity to the national utility – Ceylon Electricity Board (CEB) on a standardized power purchase agreement.

The purchase tariff is calculated and announced by CEB at the beginning of each year. This tariff calculation is based on the principle of avoided costs to the utility as result of inputs to the grid from small power plants.

Concerns had been expressed about the methodology adopted by CEB to calculate the tariff, and the suitability of the principle of avoided costs itself. Furthermore, small power developers have claimed that they too should receive a capacity charge similar to what is paid to the large independent power producers. Views had also been expressed about the lower levels of the tariff, which was not adequately stimulating a rapid development of the remaining small hydroelectric sites and other renewable sources of energy.

The World Bank under the ESD project assigned RMA to conduct a study to analyze and propose improvements to the present method of CEB tariff calculations, and to examine whether capacity credits accrue to the utility with the embedded generators.

The work extensively used CEB’s WASP and METRO planning models.

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