Sri Lanka power utility to start net metering

A note to cabinet said the proposal would encourage customers to generate their own electricity through renewable sources of power such as solar, hydro or biomass in their own premises.

Only power generated in the customer's own premises could be 'exported'. Customers would not be paid cash for excess power over a meting period (usually a month) but they would be able to carry the excess power forward to be used in the future.

Both Ceylon Electricity Board (CEB), and Lanka Electricity Company (LECO) customers could apply for a licence and sign a 10-year agreement under the purview of the Sustainable Energy Authority.

Customers would then have a two-way metres installed.

The cabinet note said the proposal would have immediate effect.

The net metering would be limited to a capacity 13 kiloWatts for single phase consumers.

Individuals who want to generate more than 40 kiloWatts would have to sign an existing standardised power purchase agreement where a tiered tariff applies.

Power analysts say the net metering facility may be profitable for high users who have to pay exorbitant rates for the last 'blocks' of power.

Large users are high extraordinarily high tariffs because Sri Lanka's politicians subsidize small users to buy votes.

Analysts say net metering could therefore reduce profits of the power utility, particularly the CEB.

Corrected

READER COMMENT(S)

5. Avinda Sep 15

This is a step in the right direction for Sri Lanka to be energy independent. However, there is discrepancy with Mr. Gnanalingam’s prices for PV solar electricity generation. Solar panel industry is increasingly becoming competitive against conventional type power industry i.e. coal, Nuclear, combined cycle, etc, with thin film solar technology.

However, at current level the prices ranges between US $ 0.56 to US $0.70 KWh[peak]. Some skeptics argue that this is after heavy subsidies and FirstSolar and NanoSolar thin film systems are not as yet proven. However, even hydrocarbons fuels are heavily subsidized and they are not taxed for clean up and decommissioning i.e. Nuclear costs involved.

The main cost involved with solar panels is the initial investment, the sun is free to use [Let hope in future that the sun over our roof is not taxed]. However, this cost will come down further when large companies like Mitsubishi start mass producing thin film solar sheets. The cost of solar panels have come down from US $100.00 KWh to less than US $ 1.00 KWh in the last forty years.

The current level of 5% to 10% efficiency of the panel is more than adequate to meet our energy need if the cost of production can be brought down.

Other options are small wind turbines that can be integrated to the building Architecture.

I suggest to Sri Lanka that initially promote net metering to large companies and people in the upper income level. They have the excess money to invest and get a return or reduce their annual energy bill. They are the ones who would spend money on buying fancy fixtures and fittings which cost many times more than the basic ones, Since they look nice and raise their image.

Finally I like to request any suggestions on current commercial potential for solar energy technology in Sri Lanka [Both PV and thermal] and companies interested in hiring people with solar energy background. I have completed my PhD in Mechanical Engineering with a research focus on Solar Energy utilization within the building Envelope and energy efficiency in the built environment. avinda.weerakoon@hotmail.com

4. Dharshan Sep 14

Excellent idea(for reasons highlited by writers 1,2 &3) and it is high time we introduced it to Sri Lanka. I hope the CEB gives adequate publicity for the public to be aware of this facility. That is unlikely considering the fact that the target group will be their most profitable customers.

3. K,Gnanalingam Sep 14

In Srilanka a developing country which had plenty of renewable hydro power almost 60% of generation about 15 years back. Due to political interference the commissioning of then cheap coal plants got delayed by more than 15 Years.

This forced on development of Independent Private Power which was most of the time was costlier and fueled by diesel fuel. The cost of production shot up to Rs 20/kWh (Today $1= SrilankanRs108) from Oil fueled Gas turbines.

The domestic tariff from March 2008 is high as Rs37/kWh for houses consuming little higher than 600kWh/month. The tariff is designed to recoup the losses made in the past several years (with very low tariff rise at the request of the Politicians). The transmission and distribution losses are also very high like 16% for the year 2007 even with a small system with a night peak about 2000MW.

Solar cells energy distributed green energy will be grid parity in these cases in this country and will help to reduce the unwanted high system losses due low investment in the transmission and distribution system due to the poor financial state of the utility.

With high prices theft also increases the losses and there is shortage of meters for the houses which acts as a catalyst to the theft. It is clear that grid parity is there with the cheaper solar cells from first solar and manosolar

Now that net metering is approved by the electricity authorities high consumption domestic consumers can go for solar cell energy and try and reduce there consumption to below 600 kWh/month they will save on the Rs 3,000 fixed charge and there unit charge will reduce from 32.50/unit to 27.30 which will be a saving of Nearly Rs 6.600 on the bill. The total saving per month will be more than Rs9,510/month on the bill.

The reduction on consumption can be achieved by going for more Energy efficient equipments like LED lamps a modern energy star fridge, stopping all electrical hot plate cooking, only use microwave cooker for any cooking. Stop putting hot food into the refrigerator allow it to cool before putting into the fridge. Take out fridge items well ahead of time and leave it out to heat up to room temperature to reduce any heating requirements.

Do not leave the fridge door open too long and avoid opening same frequently. Switch off unused equipment like computers computer monitors and televisions or radios as all of them consume some power even when not used unless energy saving schemes is already built in it.

Go for cheap 400 to 500W solar panel on your home roof to reduce your consumption or to feed into the grid then your bill will come down drastically. Please make use the facility given by the net metering provided and go green.

CEB and LECO will reduce there transmission and distribution losses. CEB will save on the costly private power generation which is supposed to be higher than Rs 20/kWh by diesel fuel and the country will benefit by reduction of costly import bill on diesel.

There will be reduction in pollution by CO2 production at the high cost diesel generation. The money saved by CEB can be used to improve the grid network there by conserving further. This is a win win situation for all with the use of free suns Solar energy.

2. K.Gnanalingam Sep 13

It should be corrected as
With cheaper Solar cells at a price level of $1/Watt peak (Firstsolar & Nanosolar makes) one should be able generate at Rs 10/kWh where as the high consumption domestic tariff is high as Rs37kWh for consumption rate of 601kWh/month. (not 601kWh.month please)

1. K.Gnanaligam Sep 13

This is a very good proposal. With cheaper Solar cells at a price level of $1/Watt peak one should be able generate at Rs 10/kWh where as the high consumption domestic tariff is high as Rs37kWh for consumption of 601kWh.month.

The payback period will be about 4 to 5 years for this type of consumers. Others will have little longer period. There is about an average of 5.4 sun hours/day and during the day the power will flow back to the grid and will reduce the High Transmission and Distribution losses of CEB.

Also the costly private power by diesel fueled Generation will reduce. This in turn will reduce the import of costly fuel into the country. This will benefit the consumer, CEB and the country. You also reduce on the emission of CO2. The savings to CEB can be used for improving the network and improve voltage drops and further reduce the losses.