Sri Lanka scraps NTPC’s plan to build coal plant

A plan by NTPC to build a power plant in Trincomalee in Sri Lanka’s Eastern Province, has been scrapped following the country’s decision to switch from coal to renewable energy sources.

Details:

Sri Lanka’s Ministry of Power and Energy  told the Supreme Court that it would drop its plan to build a coal power plant in Sampur, Trincomalee, after environmentalists raised serious concerns. 

• The decision is a virtual blow to the National Thermal Power Corporation’s (NTPC) first international joint venture, in which it holds a 50:50 stake with the Ceylon Electricity Board (CEB).

Following concerns over the environmental impact of a coal plant, Sri Lanka has decided to look at options such as Liquefied Natural Gas (LNG), solar and wind power.

Sampur Coal Power Plant:

The Sampur Coal Power Plant was proposed as a joint venture following a 2006 agreement among the Government of Sri Lanka, CEB and the NTPC. 

• In 2011, the partners formed the Trincomalee Power Company Limited, with the aim of setting up two coal-based power plants with a total capacity of 500MW in the strategically crucial coastal town on the island’s east coast.

Sri Lanka’s total installed power generation capacity is currently about 4,050 MW. This includes 900 MW of coal power, 1,335 MW of oil burning thermal power, 1,375 MW of hydro power and nearly 450 MW of non-conventional renewable energy sources. The country aims to increase its capacity to 6,400 MW in another decade to meet its growing demands.