Sahasdhanavi Ltd has issued a clarification on recent concerns raised in the media about the Sahasdhanavi Power Plant, a 350 MW combined cycle power plant being developed in Kerawalapitiya, stating that the criticisms stem from a misunderstanding of the levelized tariff figure presented in a cabinet paper.

Issuing a statement, Sahasdhanavi Ltd pointed out that the figure cited in the cabinet paper reflects the levelized tariff calculated as per the criteria published in the tender document and does not represent the cost incurred by the Ceylon Electricity Board (CEB) under actual operations. 

“It is so for the following reasons. The levelized tariff is a theoretical number for the average unit price during the contract period, derived based on formulas published in the RFP, only for evaluation purposes in the tender process using, a) fixed fuel price and exchange rate figures given in RFP (the tender document), b) dispatch projections at different load scenarios like100%, 80%, 60% plant loads at different operating hours, c) a discount rate of 10% per annum and fixed consumer price indices for over a 25-year project life,” it said.

The company further said that the levelized tariff is used solely to ensure fairness in evaluating all bidders and was never intended to reflect actual payments to the plant since actual payment depends on several variables, such as fuel cost, exchange rate, consumer price index, etc. 

“The Finalized Power Purchase Agreement (PPA) was ready by Dec 2024 and thus, cabinet approval was required. Therefore, the levelized tariff of Rs 20.15/kWh in the Cabinet paper of 31st Jan 2025 was calculated based on the indices and figures published in the RFP. Any other way of calculating the levelized tariff, in fact, would have been misleading and incorrect. Many critics have accused that the actual tariff payable in 2025, had the power plant been operational by now, has not been presented to the Cabinet. However, the fact remains that quoting a tariff for 2025 is meaningless and inaccurate, as the power plant is expected to generate its first unit of electricity only in 2028. Further, in every Cabinet Paper in the past, approvals have been granted based on the “Levelized Tariff”, and the same approach has been consistently followed hitherto. Moreover, the Public Utilities Commission of Sri Lanka (PUCSL) reviewed and, by their letter dated 01st April 2025, approved the levelized tariff and the PPA that was signed in April 2025, following the due process. Further, the Attorney General has also approved the PPA,” it said. 

Sahasdhanavi Ltd went on to note that the Sahasdhanavi Power Plant is a power-capacity-guaranteed, fully dispatchable power plant, unlike renewable energy plants that are weather-dependent and non-dispatchable, a critical difference often overlooked. The company explained that the plant will operate under a ‘dispatch on demand’ mechanism. 

“The Dispatch on demand means, the power plant shall be capable of supplying any amount of electrical power output (up to maximum power capacity) on demand by CEB at any time of the day to compensate for any deficit of electrical power of the national power grid. The Sahasdhanavi power plant is ready to supply either 318MW (on diesel) or 350MW (on LNG) when needed by CEB 24/7 throughout the year, with over 90% availability; further, penalties apply in case the availability falls below 90% annually. CEB is not obligated to use power from the plant unless required. In periods when the plant is not dispatched by the CEB, only a standby fixed cost called “Capacity Charge” (approximately Rs. 6.5/kWh based on current exchange rate and market indices) is paid. The other applicable payment to the power plant is the Energy Charge, which is paid only when the plant is called upon to generate electricity on merit order by CEB. Merit-order means that the respective plant will be called upon to generate only after all the other plants with lower energy cost are called upon to generate. Energy Charge has two components: the fuel charge, which is about 98% of the energy charge and the maintenance charge. Fuel charge is denominated in kJ/kWh (i.e. ml/kWh) and varies with the prevailing fuel price. Energy charge is paid only if the plant is dispatched by CEB, based on actual fuel cost and on the agreed fuel consumption rate in the Power Purchase Agreement (PPA). Based on current market prices, Energy Charge is around Rs. 57/kWh on diesel and Rs. 33/kWh on LNG. In case of diesel operation, the fuel cost alone is about Rs 55.86/kWh, and it is directly paid to Ceylon Petroleum Corporation (CPC),” it said.

Sahasdhanavi Ltd said, however, the plant is expected to be completed in 2028, and the applicable Energy Charge will be higher or lower depending on the Diesel price set by the CPC (or LNG price set by GOSL) at that time. 

Pointing out that the standby cost to CEB is minimal, and energy payments occur only when generation is needed, Sahasdhanavi Ltd said the levelized tariff has no bearing on actual payments and was used purely for tender evaluation, in line with international best practices. 

Emphasizing that the Sahasdhanavi Power Plant will be a critical national asset, designed to provide reliable, dispatchable, and cost-effective electricity during emergencies and peak demand, the company urged the public and policymakers to refer to facts and understand the strategic importance of this project in ensuring Sri Lanka’s energy security. (Newswire)

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In the densely populated Western Province of Sri Lanka, the disposal of solid waste has been a dirty – and dangerous – problem.

Thirty-two people were killed in the collapse of a mountain of waste at the Meethotamulla open dumping site in the Colombo District seven years ago. The pile of rotting debris had shifted from flooding and a fire before it collapsed and buried dozens of people living in nearby homes.

Even without such tragic disasters unfolding, untreated solid waste causes unhealthy air pollution as it decomposes, releasing harmful gasses into the air including highly flammable methane. It poisons the soil and groundwater as well.

Today, Sri Lanka’s Western Province, home to more than six million people, still produces 3,500 metric tons of household waste every day. That’s the equivalent of a stack of  2,600 compact cars or 13,000 motorcycles every day.

To tackle the persistent problem of solid waste disposal, the Western Power Company Ltd, a subsidiary of Aitken Spence PLC, launched the nation’s first waste-to-energy power plant.

Opened in 2021, the waste-to-energy power plant incinerates 600 to 800 metric tons of waste each day and supplies 10 megawatts of electricity to the national grid. 

Residue ash left over from the incineration at the plant is repurposed to produce cinder blocks for the construction industry, and the flue gas is treated to remove harmful particles before it is released into the air.

Aitken Spence gives considerable credit for its sustainability vision to the UN Global Compact, to which it has been a signatory since 2002. Over the last 22 years, the company has participated in many UN Global Compact programmes including the Climate Emergency Task Force, Gender & Diversity, Business & Human Rights and the Sustainable Supply Chain Working Groups as well as several Climate Ambition Accelerators along with the Target Gender Equality Accelerator, Business & Human Rights Accelerator and the SDG Innovation Accelerator.

Building of the waste-to-energy plant meant overcoming unforeseen challenges, including interest rate fluctuations that caused financial losses, a failure of some promised support systems and a financial crisis that led to depreciation of the local currency, the company said.

Former Prime Minister, Mahinda Rajapaksa has called its construction “a milestone in the solid waste management process not only in the city of Colombo, but in entire Sri Lanka.”

The concept of a waste-to-energy power plant was first proposed in 2012, and it was fast-tracked by the government in the wake of the 2017 Meethotamulla disaster.

The power plant so far has sustainably repurposed more than 815,000 metric tons of municipal solid waste into energy for the national grid.

“Otherwise it all would have ended up in an open dump, which would have caused several environmental consequences especially on  climate change,” said R. Shanmugapriya, Assistant Director (Tech and Training) at the Waste Management Authority of the Western Province.

“This plant has found a permanent solution to a national issue of waste management and most  importantly helped to preserve the surrounding environment, wetlands and waterways for the future.”

The waste-to-energy process also has helped protect the sensitive Muthurajawela wetland ecosystem that has been threatened by solid waste collection.

“For years, waste disposal had become a severe problem,especially in the Western Province,” said Shahina Mysan, Director of Engineering (Solid Waste Management) at the Colombo Municipal Council.

“This municipal solid waste was accumulating in landfills, polluting both the ground water and the environment,and spreading diseases. Moreover, the municipal solid waste was accumulating in a sensitive wetland ecosystem which cannot be valued,” Mysan said.

“The waste-to-energy power plant has not only ensured the safe disposal of the municipal solid waste, it has also safeguarded our wetlands and their own ecosystems in the surrounding areas of the Western Province for the future generations of our country.”

Rathika de Silva, Executive Director, UN Global Compact Network Sri Lanka, noted that Aitken Spence was one of the first companies to join the UN Global Compact Network Sri Lanka.

“Their dedication has not only fueled their business growth but has also positioned them as trailblazers in innovation, exemplified by their pioneering Waste-to-Energy project,” de Silva said. “I commend them for their boldness and creativity in championing sustainability, and basing their strategic decisions on scientific data.” (UN Global Compact)

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The Open Cycle phase of the Sobadhanavi 350 MW Liquefied Natural Gas (LNG) Combined Cycle Power Plant at Kerawalapitiya was declared open today.

Marking a significant milestone in Sri Lanka’s energy future, the power plant was declared open by President Ranil Wickremesinghe. 

According to the President’s Media Division (PMD), the “Sobadhanavi” Power Plant is the first Sri Lankan power plant to be operated on LNG as the primary fuel.

Recently, a memorandum of understanding (MoU) was also signed to develop infrastructure for the storage, regasification, and supply of liquefied natural gas (LNG) for the Sobadhanavi Combined Cycle Power Plant.

The agreement was finalized between Sri Lanka’s LTL Holdings Limited and India’s Petronet LNG Limited.

The agreement was inked by Minister of Power and Energy Kanchana Wijesekara and Deputy High Commissioner of India in Sri Lanka Dr. Satyanjal Pandey.

The 350 MW LNG-based Combined Cycle Power Plant, ‘Sobadhanavi,’ is a landmark project poised to become the largest independent power producer (IPP) in Sri Lanka and the first to operate with LNG. (Newswire)

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The 163 MW Combined Cycle Power Plant in Colombo which was operated by Sojitz Kelanitissa (Pvt) Limited has been successfully acquired by the Ceylon Electricity Board (CEB) on 28 March 2023, it was reported.

The acquiring process was initiated by the CEB team led by General Manager, CEB; Eng. Rohan Seneviratne commenced in accordance with the terms and conditions of the Power Purchase Agreement (PPA) in the latter part of  2022. 

The agreement between the CEB and Sojitz Kelanitissa (Pvt) Limited under the government’s policy framework was signed in June 2000 under a contract period of 20 years.

The CEB has proceeded with the acquisition process in order to increase its power generation capacity after taking into consideration the future power requirements of Sri Lanka. 

The CEB-owned 163 MW facility, located at the Kelanitissa Power Plant complex, is compatible with LNG with some minor modifications and is expected to reduce the current cost of the generation when conversion takes place. (NewsWire)

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