HomeCategoryPower Generation and Economics

RMA in association with Entura Hydro Tasmania, conducted the feasibility study and due diligence for 100 MW Wind Power Generation Project in Mannar. The project is funded by the Asian Development Bank and the implementing agency is Ceylon Electricity Board. Under this project following studies were carried out.


·         Assessment of the site wind conditions

·         Noise assessment

·         Shadow flicker assessment

·         Visual amenity assessment

·         Grid connection study

·         Transport and logistic study

·         Legal analysis

·         Financial analysis

·         Economic analysis

·         Action plan for future wind farm development


Construction of the wind farm will be commenced in year 2019 and it will start to serve the national grid by year 2021. 

RMA as the lead consultant, in partnership with Mercados Energy Markets India Private Limited, is preparing a renewable energy development master plan for Sri Lanka, a wind park master plan for Mannar, and a business model for Mannar wind parks for the Ministry of Power & Energy of Sri Lanka with financial assistance provided by Asian Development Bank.

This is a comprehensive study on renewable energy resource availability, and on the technical limitations of the national grid which are causing barriers for integrating renewable resource-based power generation. RMA team will then develop the 15-year national master plan to accelerate power generation from renewable resources. The study includes the development of a comprehensive Master Plan for wind power development in the Mannar district in northern Sri Lanka, and the development of a business model to attract investments for wind power development.

The distribution network in Sri Lanka’s Jaffna peninsula was separated from the main grid between 1995-2013. Two Independent Power Producers (IPPs) were procured to provide the supply to the isolated network, until the civil conflict ended in 2009, enabling re-connection to the main grid. RMA was contracted by the lenders to the one of the two IPPs (20 MW) to provide a comprehensive engineering and financial/economic due diligence on these diesel power plants. The services provided included analysis of the status of diesel generators, review of investor proposals for new investments to replace ageing and inefficient generating units, assessment of efficiency, monitoring of maintenance and fuel supply mechanism, etc.

The Embilipitiya Power Plant is a USD 60 million investment, with ACE Power (Pvt) Ltd of Sri Lanka and Caterpillar Power Generation Systems (CPGS) of USA holding equal shares. CPGS required to divest a portion of their equity, and DEG of Germany the investment arm of kfW required a due diligence study to be conducted about the technical and financial status of the power plant project.

Thus RMA was appointed as the consultant to Deutsche Investitions- und Entwicklungsgesellschaft mbH – Infrastructure Department – of Germany, to conduct a due diligence study on ACE Power Embilipitiya 100 MW power plant in Sri Lanka.

The study included the evaluation of the investment and its current market value, efficiency and status of maintenance, and a review of the power purchase agreement/dispatch prospects of the power plant. Based on the RMA recommendation, the project has now been divested.

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.

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.

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.

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.