February 14 (LBO) – Sri Lanka’s national power utility has raised the tariff for existing mini-hydro plants by about 19 percent during the crucial wet season, when most of the power is generated. Colombo Stock Exchange has two listed mini-hydro plants, Vallibel Power Eratne and Vidullanka, whose margins are expected to improve with the new tariff. The Ceylon Electricity Board has raised the wet season tariff by 1.12 rupees to 6.94 per kiloWatthour and the dry season tariff by 91 cents (13.5 percent) to 7.64 rupees.
The dry season is defined as February, March and April. The period between May to December as well as the month of January is the wet season.
CEB said the rates published Wednesday are effective for power generated from January 01, this year.
The tariff applies to small grid connected hydro plants of less than 10 MegaWatts of capacity.
The tariffs are calculated on an ‘avoided cost’ formula based on the cost of diesel thermal generation to the national power utility.
A tariff policy is also being formulated by the authorities for new renewable energy plants.
Last year the cost of thermal generation went up driving the mini-hydro tariffs up.