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Sri Lanka state utility to buy 50MW of wind power

Oct 08, 2009 (LBO) - Sri Lanka's state-run power utility has given the nod for 50 MegaWatts of wind power to be developed by five parties in the north-western Puttalam area of the island, an official said.
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Sri Lanka's government has declared a policy of generating 10 percent of the country's power needs from renewable sources by 2015, CEB chairman E Edirisinghe said. Two firms, Senok and Hayleys, have already signed standardized power purchase agreements (SPPA) for 10MW each and have started building, Ajith Fernando, deputy general manager in charge of energy purchase at Ceylon Electricity Board (CEB) said.
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Another three parties have also been given letters of intent to develop a further three sites of 10MW each, he said.

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Wind power plants are given a three-tier tariff on a 15-year SPPA.

The rate is announced at the beginning of the year based on costs, to give a return on equity of 22 percent a year, Fernando said. Mini-hydro plants are also connected on a standardized contract on a tiered formula.

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