Jan 09, 2014 (LBO) – Thermal generation at Sri Lanka’s state-run power utility has reached 70 percent with a sharp drop in cheap hydro generation amid dry weather, official data shows. On January 07, Ceylon Electricity Board generated 69.9 percent of its daily 32.5 GigaWatts (millions of units of electricity) from thermal sources with hydro at 27.9 percent.
Hydro reservoir storage had dropped to 50 percent of the total or enough to produce 629.7 percent of energy.
There was no coal power and most of the energy was coming from independent power producers, who use diesel or furnace oil. IPPs generated 15.1 GWh or energy on January 07, with CEB’s own thermal plants generating 7.58 percent.
A second coal plant is also expected to be commissioned in the next few months.
Sri Lanka’s interest rates have fallen in recent months partly due to better finances at state energy utilities.
In the past higher spending on fuel had generated losses at CEB and increased payments arrears to state-run Ceylon Petroleum Corporation and IPPs.
IPPs and the CPC in turn borrow from the banking system, putting up pressure on interest rates.
If the Central Bank then prints mon