Professor Priyantha D.C. Wijayatunga Public Utilities Commission of Sri Lanka

1. Barriers to Greenhouse Gas Mitigation Options in Developing Economies like Sri Lanka and Strategies to Overcome them Professor Priyantha D.C. Wijayatunga Public Utilities Commission of Sri Lanka & University of Moratuwa

2. Sri Lanka Power Sector • Installed Capacity - 2168 MW • Large Hydro - 1185 MW • Thermal - 909MW (oil fired) • Wind - 3 MW • Small-hydro - 74MW • Biomass fired- 1MW • Off-grid Systems (2003)- 10 GWh • small-hydro- 4MW (160 systems) • Solar PV- 2.2MW (53,000 SHS) • Wind 25 systems • Maximum Demand - 1580 MW • Total Generation - 8430 GWh • Annually Demand grows at 8-10% • Doubles in Every 10 years

3. Generation Mix

4. Cleaner Technologies • Mini/Micro-hydropower • Wind • Biomass Fired • IGCC – Coal • LNG

5. Identification of barriers • Policy makers • Developers • Researchers/Academic community • Financiers • Environment regulators • Representatives of environment protection advocacy groups

6. Main Barriers Identified • Wind • High initial cost • Lack of financing instruments • Seasonal variations in wind speeds • Lack of wind measurements • High overall unit cost of energy • Dendro • Lack of feed stock assurance • Unclear government policy • Insufficient knowledge about energy plantations • Lack of awareness about the technology • Lack of financing instruments

7. LNG • Uncertainty about fuel price stability • High initial cost • Lack of a clear policy • Insufficient demand for electricity • High fuel cost • IGCC • High initial cost • Negative public opinion about coal • Dependency on imported fuel • Lack of clear policy • Not a proven technology

8. Criteria to Rank • Cost to Remove the barrier • Effort required to create an awareness • Political/ Bureaucratic effort required to overcome the barrier

9. Stakeholder Groups & Weight • Policy Makers 0.25 • Energy/ Env. Experts 0.25 • Utility 0.25 • Developers/ Financiers 0.15 • Users 0.10

10. Survey • Personal visits • Used a questionnaire filled by the stakeholder • Used Analytic Hierarchy Process to analyze the responses

11. Ranking of Barriers Policy Makers Energy / Env. Experts Utility Developers / Financiers Users Cost to Remove the Barrier Effort to Create Awareness Level of Political Effort Barrier 1 Barrier 2 Barrier 3 Barrier 4 Barrier 5 Hierarchy

12. Ranking • Wind • High overall unit cost of energy • Seasonal variations in wind speeds • Lack of financing instruments • Biomass Fired Thermal • Lack of feed stock assurance • Lack of financing instruments • Lack of awareness about the technology

13. LNG • Uncertainty about fuel price stability • High initial cost • Insufficient demand for electricity • IGCC - Coal • Not a technology widely used • Lack of clear policy • Dependency on imported fuel

14. Strategies • Wind • Existing • 3MW pilot project to demonstrate the technology • Calling for expressions of interest – 20MW installation • Wind mapping under UNDP and USAID project • Proposed • Designing production incentives • Geographical diversification of plants to iron out seasonal variations • Wind diesel systems • Capacity building in Commercial banks on the technology

15. Biomass fired thermal • Existing • Developed under SPPA • 1MW pilot project • Research on energy plantations • Proposed • Detailed research to identify specific sites and potential • Designing production incentives • Building awareness among the farming community on energy plantations • Streamline wood collection mechanisms

16. LNG & IGCC • Existing • Least economic cost expansion planning methodology • Cleaner aspects of these technologies are not recognised • Proposed • Incorporate environmental cost in the planning process • Awareness building on the technology and import dependency

17. Thank You Acknowledged • WJLS Fernando, Prof Ram M Shrestha Prof Rahula Attalage, Kanchana Siriwardena • Sri Lanka Energy Managers Association • Asian Institute of Technology, Thailand • University of Moratuwa, Sri Lanka • Swedish International Development Cooperation Agency