Barriers to Greenhouse Gas Mitigation Options in Developing

Economies like Sri Lanka and Strategies to Overcome them

Professor Priyantha D.C. WijayatungaPublic Utilities Commission of Sri Lanka

& University of Moratuwa

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

Generation Mix

0

2,000

4,000

6,000

8,000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

Gen

erat

ion

(GW

h)

Hydro

Utility Thermal

Self Generation

Cleaner Technologies

Mini/Micro-hydropower

Wind

Biomass Fired

IGCC – Coal

LNG

Identification of barriers

Policy makersDevelopersResearchers/Academic

communityFinanciersEnvironment regulatorsRepresentatives of environment

protection advocacy groups

Main Barriers IdentifiedWind

High initial costLack of financing instrumentsSeasonal variations in wind speedsLack of wind measurementsHigh overall unit cost of energy

DendroLack of feed stock assuranceUnclear government policyInsufficient knowledge about energy plantationsLack of awareness about the technologyLack of financing instruments

LNG Uncertainty about fuel price stabilityHigh initial costLack of a clear policyInsufficient demand for electricityHigh fuel cost

IGCCHigh initial costNegative public opinion about coalDependency on imported fuelLack of clear policyNot a proven technology

Criteria to Rank

Cost to Remove the barrier

Effort required to create an awareness

Political/ Bureaucratic effort required to overcome the barrier

Stakeholder Groups & Weight

Policy Makers 0.25

Energy/ Env. Experts 0.25

Utility 0.25

Developers/ Financiers 0.15

Users 0.10

SurveyPersonal visits

Used a questionnaire filled by the stakeholder

Used Analytic Hierarchy Process to analyze the responses

HierarchyRanking of Barriers

Policy Makers

Energy / Env. Experts

Utility Developers / Financiers

Cost to Remove the Barrier

Effort to Create Awareness

Level of Political Effort

Barrier 1Barrier 2Barrier 3Barrier 4Barrier 5

Users

RankingWind

High overall unit cost of energySeasonal variations in wind speedsLack of financing instruments

Biomass Fired ThermalLack of feed stock assurance Lack of financing instrumentsLack of awareness about the technology

LNG Uncertainty about fuel price stabilityHigh initial costInsufficient demand for electricity

IGCC - CoalNot a technology widely usedLack of clear policyDependency on imported fuel

StrategiesWindExisting

3MW pilot project to demonstrate the technologyCalling for expressions of interest – 20MW installationWind mapping under UNDP and USAID project

ProposedDesigning production incentivesGeographical diversification of plants to iron out seasonal

variationsWind diesel systemsCapacity building in Commercial banks on the technology

Biomass fired thermalExisting

Developed under SPPA1MW pilot projectResearch on energy plantations

ProposedDetailed research to identify specific sites and

potentialDesigning production incentivesBuilding awareness among the farming

community on energy plantationsStreamline wood collection mechanisms

LNG & IGCCExisting

Least economic cost expansion planning methodology

Cleaner aspects of these technologies are not recognised

ProposedIncorporate environmental cost in the planning

processAwareness building on the technology and

import dependency

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