Post by solar2016 on Mar 8, 2017 22:01:25 GMT 5.5
What happened to the over 600 solar applications submitted by local developers for 2 to 5MW solar plants over an year ago to Sustainable Energy Authority (SEA)?
Recently, CEB has called International Tenders for sixty 01 MW solar plants under the "Battle for Solar Energy" - Phase-2.
Neth FM Balumgala of 08th March 2017 looks at the issue:-
Those who had submitted applications from 2 to 5MW solar plants complain that there had been no communication from SEA with regard to their applications and also the deposits they had made at SEA. Over 600 applications had been made at the SEA, and on average, local developers had to spend about two million Rupees each on consultancy services, etc, in their preparation of the applications.
However, CEB says they haven't received any of those applications, and it is now decided to call for competitive bidding by CEB for setting up of sixty 1MW solar plants.
Athula Wanniarachchi, CEB Engineers' Union President (CEBEU), says keeping the cost of eletricity is their responsibility, and, if the cost of electricity goes up, especially our industries will get adversely affected. CEB used to pay Rs 22 to Rs 25 per unit of electricity from solar and wind, but now, except for roof top solar, it has been decided to buy solar and wind electricity only at competitive rates, and hence help bring down the cost to the consumer.
Dr. Tilak Siyambalapitiya, an energy expert, says that according to the SEA Act, they (SEA) are obliged to receive any application by a developer of renewable enrgy. However, the recent issues have cropped up at a time when the policy for absorbing electricity to the Grid is being changed. Since 1996, electriicty had been bought from the private sector at a pre-determined price. But the process of changing the set price to the competive price has not been handled properly.
Dr.Priyantha Wijesooriya, President, REDA, says that a circular issued by the Secretary of the Ministry of Power and Renewable Energy had given clearance to local developers for setting up of solar plants from 2 to 5MW. They had paid about 1 to 2 lakhs of Rupees per application and got themselves registered under 2007 SEA Act. Considerable sums had been spent on consultants and the preparation of documents for their applications to the SEA. Then the Ministry Tender came on, but we have alredy made both verbal and written objections. No opportunity will now be given to those who have applied, and only large developers will now get the chance to take part, especilly the Grid Sub Station capacities will have to allocated to those who come from the tender process. We see a violation of the SEA Act here.
Further, he says there is a threat of "dumping" in Sri Lanka by foreign solar companies of their lower grade products. Indian model is not practical here as large, open, tree-less areas are not available in Sri Lanka. Therfore large solar parks in sri lanka is not suitable for Sri Lanka.
Sulakshana Jayawardena, Director (Development), Ministry of Power and Renewable Energy, and spokesman says tender for solar plants is open to both local and foreign developers. He says there is no truth in the allegation that the tender is a ploy to give foregn countries, especially india, an opportunity to come and set up solar plants in Sri Lanka. He took the earlier wind tender as a good example, where two wind tenders of 10MW each ---international and local-- were offered and local developers were allowed to participate in the bidding for international tender too. Local developers had been the lowest bidders in both international and local tenders, and that shows our developers have the ability to compete with their international counter parts. Idea of 01MW solar plants is to increase local participation, as there are practical difficulties in terms of financing for local developers.
All Applicants have to be registered with SEA. Those who had already registered with SEA with their old solar applications need not register this time. They are not disregarded by the calling of this new tender, as the decision has been arrived at after lengthy discussions between CEB, SEA and the Ministry. Also, a Cabinet Paper had been submitted to the Cabinet about this.
Keerthi Wickramaratne, Chaiman, SEA, says that a government decision has been taken to call competitive tenders to set up any reneable energy plants like solar. There is no intention of favouring Indian investors, but the aim is the lowest-price discovery for the purchasing of electricity. However, He admits that there could be the risk of our money going out of the country in the event of a foreign developer securing the solar tender.
Recently, CEB has called International Tenders for sixty 01 MW solar plants under the "Battle for Solar Energy" - Phase-2.
Neth FM Balumgala of 08th March 2017 looks at the issue:-
Those who had submitted applications from 2 to 5MW solar plants complain that there had been no communication from SEA with regard to their applications and also the deposits they had made at SEA. Over 600 applications had been made at the SEA, and on average, local developers had to spend about two million Rupees each on consultancy services, etc, in their preparation of the applications.
However, CEB says they haven't received any of those applications, and it is now decided to call for competitive bidding by CEB for setting up of sixty 1MW solar plants.
Athula Wanniarachchi, CEB Engineers' Union President (CEBEU), says keeping the cost of eletricity is their responsibility, and, if the cost of electricity goes up, especially our industries will get adversely affected. CEB used to pay Rs 22 to Rs 25 per unit of electricity from solar and wind, but now, except for roof top solar, it has been decided to buy solar and wind electricity only at competitive rates, and hence help bring down the cost to the consumer.
Dr. Tilak Siyambalapitiya, an energy expert, says that according to the SEA Act, they (SEA) are obliged to receive any application by a developer of renewable enrgy. However, the recent issues have cropped up at a time when the policy for absorbing electricity to the Grid is being changed. Since 1996, electriicty had been bought from the private sector at a pre-determined price. But the process of changing the set price to the competive price has not been handled properly.
Dr.Priyantha Wijesooriya, President, REDA, says that a circular issued by the Secretary of the Ministry of Power and Renewable Energy had given clearance to local developers for setting up of solar plants from 2 to 5MW. They had paid about 1 to 2 lakhs of Rupees per application and got themselves registered under 2007 SEA Act. Considerable sums had been spent on consultants and the preparation of documents for their applications to the SEA. Then the Ministry Tender came on, but we have alredy made both verbal and written objections. No opportunity will now be given to those who have applied, and only large developers will now get the chance to take part, especilly the Grid Sub Station capacities will have to allocated to those who come from the tender process. We see a violation of the SEA Act here.
Further, he says there is a threat of "dumping" in Sri Lanka by foreign solar companies of their lower grade products. Indian model is not practical here as large, open, tree-less areas are not available in Sri Lanka. Therfore large solar parks in sri lanka is not suitable for Sri Lanka.
Sulakshana Jayawardena, Director (Development), Ministry of Power and Renewable Energy, and spokesman says tender for solar plants is open to both local and foreign developers. He says there is no truth in the allegation that the tender is a ploy to give foregn countries, especially india, an opportunity to come and set up solar plants in Sri Lanka. He took the earlier wind tender as a good example, where two wind tenders of 10MW each ---international and local-- were offered and local developers were allowed to participate in the bidding for international tender too. Local developers had been the lowest bidders in both international and local tenders, and that shows our developers have the ability to compete with their international counter parts. Idea of 01MW solar plants is to increase local participation, as there are practical difficulties in terms of financing for local developers.
All Applicants have to be registered with SEA. Those who had already registered with SEA with their old solar applications need not register this time. They are not disregarded by the calling of this new tender, as the decision has been arrived at after lengthy discussions between CEB, SEA and the Ministry. Also, a Cabinet Paper had been submitted to the Cabinet about this.
Keerthi Wickramaratne, Chaiman, SEA, says that a government decision has been taken to call competitive tenders to set up any reneable energy plants like solar. There is no intention of favouring Indian investors, but the aim is the lowest-price discovery for the purchasing of electricity. However, He admits that there could be the risk of our money going out of the country in the event of a foreign developer securing the solar tender.