Average prices paid in Sri Lanka to renewable energy firms in wind, mini-hydro and biomass are among the highest in the world, an analysis by an industry expert has shown.
Wind power plants in Sri Lanka are paid an average of 19.97 rupees a kiloWatt hour compared to the equivalent of 7.11 rupees in South Korea, 9.84 rupees in Taiwan, 13.69 in Uganda and 18.34 in Thailand, an analysis by Tilak Siyambalapitiya, an industry consultant shows.
Sri Lanka offers a standard power purchase contract for small renewable plants of under 10 MegaWatts.
Siyambalapitiya said attempts were now being made to allow larger wind plants where capital costs would be lower.
Biomass firms are paid 20.70 rupees a unit in Sri Lanka compared to the equivalent of 4.74 rupees in Thailand, 6.50 in India’s Andra Pradesh state, 9.85 in Malaysia, 10.46 in Madya Pradesh state, 11.37 in Uganda, 16.00 in USA’s Minnesota state.
Siyambalapitiya told members of Sri Lanka Economics Association that the newly built coals plant now cost about 10.00 rupees a unit when capital costs were included.
He said the environmental costs of thermal plants were at the moment included in the thermal generation sector only as compliance cost for environmental standards, such as for air quality or warm water discharges.
Renewable industry has become one of the fastest growing businesses in the world, backed by heavy lobbying and subsidies.
