Energy quandry
February 14, 2012
Many of the world’s smaller countries are faced with a similar dilemma - they need ever increasing amounts of energy to fuel their surging economic growth. But they often lack the natural resources to generate energy themselves.
The problem is compounded by insufficient electricity grids and a lack of energy infrastructure. Sri Lanka is a good example. The demand for energy there is rising, but the small island nation has little in the way of fossil-based reserves or raw materials.
Solar energy for homes, coal for industry
Across Sri Lanka, sustainable energy projects are meant to provide a reliable and clean source of electricity for everyone. Hydropower, wind energy and solar power are all playing an increasingly large role in the country’s energy mix. In recent years, several wind parks and solar parks have been set up.
But even the best intentions to establish a green energy supply can’t work if there is no access to a grid that can feed electricity to homes and businesses. That may not present problems in urban areas, but they do in rural, remote regions. One answer is to create decentralized solar power centers - and the Sri Lankan ministry of power and energy is promoting that development with special measures.
The benefits of green energy are evident - water, wind and sun are sustainable, free sources of energy, whereas coal and other fossil fuels have to be imported into the country. But at the same time, Sri Lanka cannot give up fossil-based fuels entirely because its energy needs are simply too huge.
Hence, coal - one of the most polluting sources of electricity generation - still plays a key role in the island’s energy mix. The Norocholai Power Station, a coal-fired power plant on the country’s west coast, generates more energy than any other facility on the island. It was connected to Sri Lanka’s energy grid in March of 2011 with the first 300 megawatt block. More blocks are set to come: the facility is expected to achieve a capacity of 900 megawatts.
The Sri Lankan parliament has already approved the construction of a second coal-fired plant on the island’s east coast. But according to the government’s plans, that facility will be the last of its kind.
Know-how and imports from neighbors
For some in Sri Lanka, the Norocholai Power Station represents a major symbol of success - especially in a country where many people don’t have access to electricity. Yet the plant’s capacity dwarfs in comparison to what larger, more powerful countries can achieve.
“Keep in mind that China can produce the same amount of energy that the Norocholai Power Station does in a few years in just a few days,” Carlos Fernández Alvarez, a coal expert at the International Energy Agency (IEA), says. “Still, the plant in Sri Lanka is significant.”
China has played an important role in building up Sri Lanka’s energy capacity. The China Machine Engineering Corporation helped construct the country’s first coal-fired power plant. The second plant will be built with the help of India’s largest state-owned energy provider, National Thermal Power Corporation (NTPL). And the coal Sri Lanka burns comes from Indonesia. The island’s state-owned energy provider, Ceylon Electricity Board, has already secured the first shipment.
Rising coal prices force rethink
Up until now, Sri Lanka has depended heavily upon fossil fuels and diesel power plants. But with rising oil prices, it’s becoming increasingly difficult for the government to sustain such facilities.
The price of a barrel of oil rose steadily over the last ten years, only dropping off slightly during the global financial crisis. With oil now having reached more than $100 a barrel, it has become an expensive source of energy. Oil-powered energy stations thus increasingly play a marginal role in global electricity generation. In addition to building new coal plants, Sri Lanka is now trying to get its oil-powered facilities to switch to liquefied petroleum gas.
But despite initial assurances, the government now says coal power will not lead to lower energy prices for consumers in Sri Lanka. Demand from booming industries in China and India have also pushed up the price of coal on global markets. A few years ago, China transitioned from being one of the world’s biggest coal exporters to an importer. Australia and Indonesia - the world’s biggest coal exporters - have been unable to boost production to meet global demand.
Asoka Abeygunawardana from Energy Forum Sri Lanka is critical of the government’s plans to invest in coal in the future. "We don’t have any coal reserves on the island. It is not a native source of energy,“ said Abeygunawardana, an engineer who consults the government on energy issues. His organization is calling for a decentralized system based on clean, renewable energy.
New resources - coasts and wind
Abeygunawardana has also urged the government to scale back its plans for using coal power.
“Recent fluctuations on coal markets have proven that coal’s value is still very much dependent upon oil prices,” Asoka Abeygunawardana says. “What’s more, coal is the biggest polluter among all forms of energy production. It pollutes the environment in a variety of ways and contributes to global warming.”
In the long run, Sri Lanka can reap the benefits of its diverse geographical makeup by making a large investment in renewable energy. The island receives impressive amounts of sunlight, the coasts and the Indian Ocean present a unique opportunity to generate hydropower, and wind and tidal power are also strong possibilities. In fact, the first test facility for a tidal power station is set to be built in the near future.
Author: Hanno Böck / ss
Editor: Sonia Phalnikar