Sri Lanka’s installed power capacity stands at approximately 5,000 megawatts, with thermal power plants contributing about 40% of this capacity, said Lanka Transformer Limited (LTL) Deputy CEO Ravindra Pitigalage.
“The reality is that we need a new power plant of about 350 megawatts capacity every one and a half years to keep pace with the annual growth in demand,” Pitigalage said.
He was speaking at an NDB Securities media briefing on the LTL IPO on September 6.
The growth rate, estimated at about 5% per year, highlights the continuous pressure on the national grid to expand and evolve.
The growing demand necessitates the building of new power plants every few years to maintain system stability and meet the country’s increasing electricity needs.
LTL Holdings is responding to this challenge by initiating significant power projects, including the upcoming 100-megawatt solar plant in Siyambalanduwa and a 350-megawatt facility in Kerawalapitiya.
These projects are part of a broader strategy to not only increase capacity but also to diversify the energy mix with more sustainable options such as solar power. The urgency of these developments is underscored by the planned Initial Public Offering (IPO) of LTL, aimed at raising the necessary capital to support these expansive endeavors.
“The transition to more efficient and environment-friendly energy sources is imperative,” Pitigalage said, emphasising the shift towards liquefied natural gas (LNG) as a cleaner alternative to traditional coal and oil. This transition is not merely about meeting energy demands but also about reducing the environmental impact of power generation.
“By integrating LNG, we aim to reduce carbon emissions significantly while also tackling the inherent challenges of solar and wind energy’s intermittency,” he said.
Over the past seven years, the lack of new thermal power plants has put additional strain on the system, a gap that LTL’s new projects aim to fill. These plants are critical not only for their capacity but for their role in stabilising the grid against fluctuations in renewable energy supply, which is vital for a country that cannot rely solely on intermittent sources due to its isolated grids.
The setting up of large LNG power plants, such as the proposed Sahasdhanavi and Sobadhanavi, alongside the existing Yugadanavi plant, is crucial for Sri Lanka to secure more favourable LNG procurement terms.
These additional facilities will significantly increase the national demand for LNG, providing the necessary scale to negotiate lower prices and more favorable supply conditions.
By boosting the collective demand through these larger plants, Sri Lanka can achieve the critical mass required for economically viable LNG shipments, ensuring a more sustainable and cost-effective energy supply for the country’s future needs. – TP
