Sri Lanka's Power and Energy Minister says coal is not a cheap energy source

Sri Lanka's Power and Energy Minister Champika Ranawaka says that the coal power plants set up in the country might not generate cheap power or result in a possible reduction in electricity tariffs as initially expected.

Ranawaka has told the media that a coal power generated electricity unit that cost 18 cents in 1990 and 90 cents in 2000 has increased to Rs. 6.20 in 2010. In 1990, an electricity unit was sold at Rs. 4.70 in the country.

The increase in a unit price of coal power is a clear indication that coal power generation would not be able to bring the results anticipated in 1990.

The Minister has said that when Sri Lanka ordered its first shipment, coal was at US$ 69 per tonne and the energy cost of a unit was Rs. 3.20. When the second shipment was ordered, the coal prices had increased to US$ 140 per tonne resulting in an increase in the per unit energy cost to Rs. 6.50.

However the next shipment has also been ordered and the coal prices have further increased to US$ 160 per tonne, the Minister has said.

The Norochcholai coal power plant project was mooted in the 1990s and initiated in 2006 with the promise of cheap power to the consumers. Successive governments claimed that coal power would result in a reduction in the electricity tariffs.

Ranawaka has said the increase in coal consumption and the lack of energy sources are expected to make coal a very expensive energy source by 2020.

Howev [...]