Impact of alternative generation planning options on electri city tariffs

Abstract

Sri Lanka is predominantly a fossil fuel importing country with relatively high rainfall mainly in the central hilly region. This factor has led to the heavy dependence on hydropower to satisfy its power generation needs during the past century. Presently this hydropower dominated Sri Lankan power system is moving towards thermal system domination. This is due to the limitation of economic hydro-power resources and the fact that a major component of these economic resources has already been exploited. Further Ceylon Electricity Board (CEB), institution responsible for generation planning, considers only candidate thermal options together with four candidate hydropower options when preparing the base case expansion plan. Long-term least-cost power generation expansion plan has therefore given rise to the installation of oil-fired and coal-fired thermal plants to meet the increasing demand of the country [1].