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ADB approves support for power sector reforms in SL

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The Asian Development Bank (ADB) today approved a $100 million policy-based loan to support and facilitate reforms aimed at enhancing the financial sustainability of the power sector in Sri Lanka.

The Power Sector Reforms and Financial Sustainability Program will complement the International Monetary Fund’s Extended Fund Facility arrangement and bolster the operational efficiency and competitiveness of country’s power sector. The program will help create a conducive environment for private investments, boosting renewable energy development, and modernizing power grids.

“Developing cost-competitive renewable energy and providing reliable and affordable electricity supply—with a transparent and independent power sector regulatory framework—will help Sri Lanka drive economic growth and address the current financial and economic crisis,” said ADB Principal Energy Specialist Jaimes Kolantharaj. “This program will support reforms in the power sector introduced under the Electricity Act, including institutional and regulatory reforms and improve operational sustainability of the electricity sector.

The program will also support the development of renewable energy to accelerate the country’s transition to clean energy as envisaged under Sri Lanka’s nationally determined contributions.”

The program will help the government undertake institutional reforms in the electricity sector by establishing independent companies with defined functions and support strengthening their corporate governance and financial sustainability. It will support regulatory reforms with the implementation of the new national tariff policy that will improve financial sustainability of the sector through cost-reflective tariffs.

To help accelerate investments in renewable energy, the program will assist multiple initiatives under the renewable energy expansion plans for 2023–2030. The key initiatives include implementing a periodic revision of feed-in tariffs for small power plants and rooftop solar users, facilitating integration of renewable energy projects into the national grid, and effective application of a competitive procurement framework for renewable energy projects. The program will support increased women’s participation in the power sector by developing policies to promote equitable participation of female customers, female entrepreneurs, and women and disadvantaged community groups.

ADB will provide an additional $1 million technical assistance grant from its Technical Assistance Special Fund to support program implementation, capacity building of electricity companies, the development of their business plans and overall power system development plans.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members – 49 from the region.

(News1st)

 (This story, originally published by News1st has not been edited by SLM staff)

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Norochcholai generator to shut down for 25 days

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The Ceylon Electricity Board (CEB) announced that the generator No. 01 at the Norochcholai Power Plant will be deactivated from midnight today (June 13) for scheduled maintenance lasting 25 days.

This will result in a temporary reduction of 300 megawatts from the national grid.

However, the Kelanitissa Combined Cycle Power Plant, which had been deactivated for around one and a half months for maintenance, will also be reactivated from midnight, contributing 165 megawatts back to the system.

CEB Media Spokesman – Dhammika Wimalaratne noted that the timing of the maintenance aligns with increased hydroelectric generation capacity due to current rainfall.

(Source: Aruna)

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Global oil prices soar after Israel attacks Iran

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Global oil prices jumped after Israel said it had struck Iran, in a dramatic escalation of tensions in the Middle East.

Benchmark oil contracts Brent Crude and Nymex light sweet were up by more than 10% after the news emerged.

Traders are concerned that a conflict between Iran and Israel could disrupt supplies coming from the energy-rich region.

The cost of crude oil affects everything from the price of food at the supermarket to how much it costs to fill up your car.

Analysts have told the BBC that energy traders will now be watching to see whether Iran retaliates in the coming days.

“It’s an explosive situation, albeit one that could be defused quickly as we saw in April and October last year, when Israel and Iran struck each other directly,” Vandana Hari of Vandana Insights told the BBC.

“It could also spiral out into a bigger war that disrupts Mideast oil supply,” she added.

In an extreme scenario, Iran could disrupt supplies of millions of barrels of oil a day if it targets infrastructure or shipping in the Strait of Hormuz.

The strait is one of the world’s most important shipping routes, with about a fifth of the world’s oil passing through it.

At any one time, there are several dozen tankers on their way to the Strait of Hormuz, or leaving it, as major oil and gas producers in the Middle East and their customers transport energy from the region.

Bounded to the north by Iran and to the south by Oman and the United Arab Emirates (UAE), the Strait of Hormuz connects the Gulf with the Arabian Sea.

“What we see now is very initial risk-on reaction. But over the next day or two, the market will need to factor in where this could escalate to,” Saul Kavonic, head of energy research at MST Financial said.

(BBC News)

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CID teams conduct prison inspections islandwide

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The Ministry of Public Security says that 28 Criminal Investigation Department (CID) teams have begun inspections at all prisons across the country yesterday (June 12), with the operation continuing today (June 13) due to its scale.

These inspections focus particularly on reviewing prison documents, as part of the ongoing investigation into the alleged misuse of presidential pardons to unlawfully release inmates.

Commissioner General of Prisons – Thushara Upuldeniya, who was arrested over the unauthorized release of an Anuradhapura Prison inmate on Vesak Poya Day, remains in custody at a Colombo prison under special protection.

Meanwhile, Anuradhapura Prison Superintendent – Mohan Karunaratne, who has also been remanded, is to be produced before court again today.

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