Substandard Coal Imports Trigger Power Losses, Parliamentary Scrutiny

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By: Staff Writer

January 29, Colombo (LNW): Sri Lanka’s energy sector is once again under pressure following revelations that low-quality coal imported for electricity generation has significantly reduced national power output, prompting parliamentary scrutiny and raising concerns about a looming energy crisis.

The former Chairperson of Lanka Coal (Private) Limited, who played a key role in the procurement process of coal imports, is expected to be summoned before the Parliamentary Sectoral Oversight Committee on Infrastructure and Strategic Development. The decision was taken when the Committee met recently in Parliament under the chairmanship of MP S.M. Marikkar. Senior officials from the Ministry of Energy and Lanka Coal Company were also summoned to provide explanations.

During the meeting, officials revealed that coal samples from three recently arrived shipments had been sent to India for laboratory testing. Authorities stated that definitive conclusions on quality and compliance would only be possible after the test reports are received, further delaying accountability.

Energy experts, however, warn that the impact of substandard coal is already visible. According to Dr. Vidhura Ralapanawe, when all three coal power plants operate at optimal conditions, Sri Lanka can generate 810 megawatts (MW) of electricity. Due to poor-quality coal currently in use, the maximum achievable output has dropped to approximately 715 MW, resulting in a daily shortfall of nearly 95 MW.

This deficit forces the country to rely on petroleum-based power generation, which comes at a substantially higher cost. Experts point out that electricity generated using fuel oil or diesel places a heavy burden on state finances and ultimately on consumers.

Reports indicate that the disputed coal stocks were used for power generation on January 20 and 22, raising further questions about quality assurance mechanisms. Specialists argue that the Kelanitissa Combined Cycle Power Plant could be operated using naphtha to temporarily compensate for the lost generation capacity, although this too would increase costs.

More alarmingly, experts caution that ongoing issues related to the controversial coal tender may delay fresh coal imports until April, creating the risk of a severe energy crisis. Coal procurement must be completed before the southwest monsoon begins, as rough seas from April to September make unloading operations nearly impossible.

Sri Lanka requires around 60,000 metric tonnes of coal, delivered via at least 38 shipments, to meet annual electricity demand. So far, only three vessels have arrived. With the Lakvijaya Coal Power Plant in Norochcholai supplying nearly one-third of national electricity demand, any further reduction in output from its three generators could push the country into widespread power disruptions.

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