Technical and Economic Impacts of the First Coal-fired Power Station in Sri Lanka

Abstract: The first coal-fired power plant in Sri Lanka was successfully connected to the national grid in year 2011. The proposal of implementing coal-fired power plants in Sri Lanka has been appearing in power sector master plans since year 1985. It was delayed for many years, mainly due to public protests and indecision of the political leadership of the country. This research analyzes the social and economic barriers faced during the implementation stage. Operation of the plant in terms of system inertia, reliability and stability is discussed. This is the single largest power sector investment in Sri Lanka and returns on the investment were analyzed in this study. As this is the first coal-fired power plant in Sri Lanka, success of this project will create the platform for the public acceptance of future coal-fired power plants. There were some technical failures during the initial years of operation of the plant, and now it records a higher reliability. Furthermore, it is important to summarize the lessons learnt after implementing this project. Future plans of the utility, energy policy of the country and the political agenda of a country should reflect the experience with this project. This is a good example that teaches the lesson; projects which require to be implemented in the national interest should not be postponed or cancelled due to the protest by small groups of people perceived to be affected by the project. It is highlighted that system stability is improved in many cases due to the increase of power system inertia, to which this power plant makes the largest contribution. System inertia is improved in six out of nine scenarios, which were analyzed in this study. Economic benefits gained by the power plant were examined and the study proves that this power plant will have a significant positive effect on the national economy. Loss incurred delaying the project was calculated and it proves the importance of this project.