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Sri Lanka says, Chinese built coal power plant has shortcomings

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Malika1990

Malika1990
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Sri Lanka says, it has found certain shortcomings in the Chinese built coal power plant, located in the country’s North Western province.
Chairman of the Ceylon Electricity Board, Professor Wimaladharma Abeywickrama speaking to News360.lk said “There are quality issues in the plant”.
He made this claim as the 300 Megawatt coal power plant located in Norrochcholai is currently not operating owing to a breakdown.
The breakdown which occurred on Monday resulted in Sri Lanka imposing power cuts during Tuesday and Wednesday.
The plant approximately provides around 15% of the national power requirement during these days, as the nation’s hydro power generation too has declined owing to lack of adequate rain.
This is the 5th major breakdown occurred in the Chinese built coal power plant since its commissioning during the year 2010 and in all occasions the plant has been shutdown to repair.
Abeywickrema says, they have requested the Chinese officials to take steps to iron out the deficiencies existing in the plant.
“We hold regular meetings with the Chinese contractor and the consultant to get this right” added the CEB chairman.
http://www.news360.lk/economy/news-sri-lanka-11-08-2012-says-chinese-built-coal-power-plant-has-shortcomings-009876

Hawk Eye

Hawk Eye
Expert
Expert

How much commission did they take to grant this project to chinese consultants?

Whitebull


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

China is our friendly country and they have supported us in difficult situations but these quality issues has to be looked in to.....

Kanaga


Stock Trader

We are very glad to know that the plant has started to function. As per the CEB 2011 Statistical digest Cost/kWh on Generation at this plant is Rs6.49. If we assume the loss/day for no generation of Coal plant is Rs80M and there was no generation for 35 days cost for this is Rs2800M When this cost is added and if we work the cost/kWh on Units actually sent out of Power plant assuming 5% station losses the cost/kWh on units sent out works to Rs 9.78/kWh sent out of the plant. If operation and Maintenance costs are added the total cost per unit works to Rs9.90/kWh If we add the interest on loan this reaches Rs10/kWh. Please note this power plant has used Rs 330M worth of diesel for its operation in 2011. When this is delivered to a low voltage customer the cost could be more than Rs12/kWh. So this Power plant is not all that cheap as indicated earlier and now the Coal price is to go up further from this July with addition of Carbon Tax in Australia which determines the Asian Coal price. So be prepared for a tariff increase soon!

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