The Public Utilities Commission of Sri Lanka (PUCSL) is concerned about what Lanka Coal Company (LCC) is doing to obtain coal on credit for the country’s sole coal power plant in Norochcholai.
Given the state of the Sri Lankan economy, the utilities regulator said it was unlikely that any supplier would offer long-term credit to assist the country.
PUCSL Chairman Janaka Ratnayake told that it was critical to find a coal supplier and the necessary funds as soon as possible to bring down coal because the country’s electricity generation was entirely dependent on the 900 MW of “firm power” produced by the coal power plant.
“If we don’t get the coal we need, we’ll have a serious power crisis at the end of the year and will have to turn off the power for at least 15 hours a day,” Ratnayake said.
Ratnayake stated that it was unlikely that any supplier would come forward to provide Sri Lanka with coal on a long-term basis in such a crisis.
According to the PUCSL Chairman, Sri Lanka needs to raise at least $650 million to purchase enough stocks for the coming season.
LCC Chairman Jagath Perera, stated that the country’s existing coal stocks would be sufficient until September 20 and that it had already secured 50% of the coal requirement for the next season through tenders awarded last season.
According to Perera, LCC has received 50% of the awarded tenders. “We have awarded tenders for coal supply, and 50% of that was supplied last season; the remaining 50% will be supplied this season,” Perera said, adding that the normal annual coal requirement was 2.25 million MT, but this time it had been calculated as 2.4 million MT.
Meanwhile, Chairman of the Ceylon Electricity Board (CEB) N.S. Ilangakoon announced that the tender for the supply of coal had been opened and would close on August 10th.