National Energy Policy & Planning - Resource Management Associates (Pvt) Limited

Electricity Utility Planning National Energy Policy & PlanningEx-post Evaluation of JICA funded projects

In association with ICNet of Tokyo Japan, RMA conducted ex-post evaluation of three JICA-funded projects completed in Sri Lanka over the past five years.

(a) Power sector reform project
(b) Medium voltage distribution project
(c) Transmission and substations development project.

The work was conducted in accordance with the JICA rules laid out for such ex-post evaluation of projects. RMA conducted analysis of completed projects, examining their present status of operation and problems in operation and maintenance. RMA also developed the financial and economic models for (b) and (c) to assess the impacts of the investments on the economy and CEB.

Energy Efficiency & Demand Management National Energy Policy & PlanningSri Lanka Energy Efficiency Improvement Fund

JICA assigned the development of the funding mechanism for a new Energy Efficiency Improvement Fund to assist the implementation of energy efficiency projects in (i) private industrial and commercial institutions (ii) government buildings, and (iii) appliances used in large scale by all electricity customers. RMA organised an interdisciplinary team of four specialists with hands-on, in-country experience in energy economics, engineering, banking and finance, and in government treasury operations, to develop the structure, eligibility criteria and the operating mechanism for this new credit line. A comprehensive financing plan was prepared for each focus area of the implementation.

Electricity Utility Planning National Energy Policy & PlanningPPTA: Formulation of the Network Expansion and Rural Electrification Project for Sri Lanka

RMA was selected by ADB to work in association with Hydro Tasmania of Australia, to formulate the bank’s next investment project in Sri Lanka. The project was to strengthen the power sub-transmission network by establishing five grid substation, building new 33 kV lines and providing electricity services to a further 400 villages. The value of the project was targeted at USD 70 million.

The role of RMA was to conduct analysis of the performance of the existing MV network throughout the country, and identify weak areas by way of poor voltage regulation and reliability. RMA conducted extensive customer and network surveys, measurements and modelling, to identify the problems in the network and provide an initial overview to the ADB about the performance of projects previously funded by the bank. Thereafter, RMA liaised with the utility to critically review the technical performance of the MV network, conduct simulations and develop a long-list of projects. Through a screening process, the projects were prioritised and short-listed to be included in the project. The performance of the each grid substation and MV line proposed was modeled and its performance was verified.

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.

Energy Economics & Pricing National Energy Policy & Planning Renewable Energy DevelopmentTechnical Standards for Grid Interconnection of Embedded Power Plants

RMA was selected by the World Bank and Ceylon Electricity Board (CEB, the National Electricity Utility in Sri Lanka) to prepare a Guide for grid interconnection of small power plants embedded in the distribution system of Sri Lanka. RMA provided the Consulting Services to this project jointly with DULAS Ltd. of UK.

Connection of relatively small, embedded power plants to the CEB network commenced in the mid-1990s. These embedded power plants are mostly built, owned and operated by non-utility Companies and individuals. Presently, most of these are small hydroelectric plants, with a few Combined Heat and Power plants also in operation. There are purpose-built, investor-owned power plants as well as those with a captive load, such as a tea factory.

The interconnection agreement between the CEB and the Generator is based on a Power Purchase Agreement, which has been standardised by the CEB. The technical requirements for the safety and protection of equipment used for the interconnection were guided by the G/59 Technical Recommendations published by the Electricity Association of the UK. There was a need to streamline the design, testing and commissioning of the interconnection of embedded power plants with the Grid to match specific situations in Sri Lanka.

RMA in association with DULAS Ltd. of UK, developed the Guide Book, after studying the specific requirements and characteristics of both the CEB grid and the small power plants. Services provided to CEB also included two Training Courses conducted by RMA/DULAS.

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