‘Bidding for renewables will certainly work’ –response

Dr. Tilak Siyambalapitiya writes extensively about the mismanagement of the power and energy sectors, but the government takes no action to rectify the mistakes. I am reminded of the Sinhala saying, which means ‘playing a violin to a deaf elephant’.

Dr. Siyambalapitiya says that bidding for renewables will certainly work and makes mention of wind energy. This is certainly true as bidding promotes healthy competition, but what has the government done?

Dr. Siyambalapitiya should be reminded of the agreement signed with Adani of India to pay for a unit of electricity US dollars. 14.6 cents, which works out to approximately Rs. 50 in Sri Lankan currency. Neither the CEB nor the Ministry for Power and Energy was contacted when the contract was awarded.

Now, all private suppliers of wind energy will demand the same price; the CEB’s tariff will have to be restructured accordingly at the expense of consumers, who will be burdened with higher tariffs.

This is not the only instance where the government has awarded tenders without consulting CEB or the Power and Energy Ministry, a case of being the agreement with an American company to set up an LNG Plant in Colombo. The then President Gotabaya Rajapaksa ordered the CEB to achieve a target of 70% renewable energy by year 2032, without inquiring from the CEB whether the ambitious target was feasible, given its resources and capacity.

An alarming case of political interference during the Yahapalana regime was that the Minister of Power and Energy did not approve the recommendations made by the Tender Board for an LNG plant; instead he wanted it awarded to a Chinese construction company.

The developed countries hire experts in their respective fields and rely on their opinion and advice to attain development goals, but in this country, politicians tell experts what to do.

Besides, some of our professionals do not speak out, but worse still, they actually collaborate with the corrupt politicians for their own benefit. What these professionals do not seem to realise is that in the long term, they become expendable, as can be seen from the predicament of a former Secretary to the Ministry for Health.

A Secretary to the Ministry for Power and Energy was also dismissed from service on a court order for carrying out illegal directives of the Minister.We have eminent persons of international repute who could guide and advise the government but they are not consulted.

Prof. Mohan Munasinghe was loaned by the World Bank during J. R. Jayewardene regime as an advisor on energy. He set up the Energy Division, under the Ministry of Power and Energy, and had an Act passed by Parliament. I do not know what has become of it.

Then we have Prof. K. K. Y. W. Perera, a former Chairman of CEB and also Secretary to the Ministry of Power and Energy. The CEB was run so efficiently during his tenure as a profitable venture that the Treasury insisted that CEB invest on Treasury Bills. That was possible as there was no political interference but assistance in seeking foreign funding and abiding by tender board recommendations.

Then we have Dr. P. N. Fernando, who founded the Generation Planning Division in CEB and produced CEB’s first Least Cost, Long-term Expansion Plan. Needless to say, the Energy Generation plan plays a pivotal role in running the energy sector efficiently. He left to join the Asian Development Bank, and is now retired. We also have Dr. Siyambalapitiya.

These are only a few names that come to mind. I am sure if those experts are approached, they will offer their services, free of charge, out of their love for this country, which is being ruined by politicians, who are veritable square pegs in round holes.

It has been reported that the government is planning to privatise the CEB to run it as a profitable venture, without taking into consideration adverse effects of its action. Private companies are driven by profit maximisation with no heed for the benefit of the public.

The privatisation of the CEB will lead to a steep hike in the cost of electricity, and an increase in cost of production will place the local exporters at a disadvantage in an extremely competitive global environment.Socio-economic development of a country hinges on power and energy, and this vital sector should be handled by the State with the help of patriotic experts.

G. A. D. Sirimal