Energy Systems
EE 5003
Chapter 1: Introduction:
1.0 Energy
In physics, energy (Ability to do work) is a property of objects, transferable among them
via fundamental interactions, which can be converted into different forms but can neither
be created nor destroyed. The joule is the SI unit of energy, based on the amount
transferred to an object by the mechanical work of moving it 1 metre against a force of
1 newton.[1]
Work and heat are two categories of processes or mechanisms that can transfer a given
amount of energy. The second law of thermodynamics limits the amount of work that can
be performed by energy that is obtained via a heating process—some energy is always lost
as waste heat. The maximum amount that can go into work is called the available energy.
Systems such as machines and living things often require available energy, not just any
energy. Mechanical and other forms of energy can be transformed in the other direction
into thermal energy without such limitations.
There are many forms of energy, but all these types must meet certain conditions such as
being convertible to other kinds of energy, obeying conservation of energy, and causing a
proportional change in mass in objects that possess it. Common energy forms include
the kinetic energy of a moving object, the radiant energy carried by light and
other electromagnetic radiation, the potential energy stored by virtue of the position of an
object in a force field such as a gravitational, electric or magnetic field, and the thermal
energy comprising the microscopic kinetic and potential energies of the disordered
motions of the particles making up matter. Some specific forms of potential energy
include elastic energy due to the stretching or deformation of solid objects and chemical
energy such as is released when a fuel burns. Any object that has mass when stationary,
such as a piece of ordinary matter, is said to have rest mass, or an equivalent amount of
energy whose form is called rest energy, though this isn't immediately apparent in
everyday phenomena described by classical physics.
According to mass–energy equivalence, all forms of energy (not just rest energy) exhibit
mass. For example, adding 25 kilowatt-hours (90 megajoules) of energy to an object in the
form of heat (or any other form) increases its mass by 1 microgram; if you had a sensitive
enough mass balance or scale, this mass increase could be measured. Our Sun
transforms nuclear potential energy to other forms of energy; its total mass does not
decrease due to that in itself (since it still contains the same total energy even if in different
forms), but its mass does decrease when the energy escapes out to its surroundings, largely
as radiant energy.
Although any energy in any single form can be transformed into another form, the law
of conservation of energy states that the total energy of a system can only change if energy
is transferred into or out of the system. This means that it is impossible to create or destroy
energy. The total energy of a system can be calculated by adding up all forms of energy in
the system. Examples of energy transfer and transformation include generating or making
use of electric energy, performing chemical reactions, or lifting an object. Lifting against
gravity performs work on the object and stores gravitational potential energy; if it falls,
gravity does work on the object which transforms the potential energy to the kinetic
energy associated with its speed.
More broadly, living organisms require available energy to stay alive; humans get such
energy from food along with the oxygen needed to metabolize it. Civilisation requires a
supply of energy to function; energy resources such as fossil fuels are a vital topic in
economics and politics. Earth's climate and ecosystem are driven by the radiant energy
Earth receives from the sun (as well as the geothermal energy contained within the earth),
and are sensitive to changes in the amount received. The word "energy" is also used
outside of physics in many ways, which can lead to ambiguity and inconsistency. The
vernacular terminology is not consistent with technical terminology. For example, while
energy is always conserved (in the sense that the total energy does not change despite
energy transformations), energy can be converted into a form, e.g., thermal energy, that
cannot be utilized to perform work. When one talks about "conserving energy by driving
less", one talks about conserving fossil fuels and preventing useful energy from being lost
as heat. This usage of "conserve" differs from that of the law of conservation of energy.[2]
We eat food but if we do a workout or even simply exists we dissipate energy and the mass of
food we consumed is converted into energy and dissipates. Why do we put on weight because
we do not dissipate as much energy as we take in. Food contains Carbohydrates, lipids and
proteins.
1.1 Energy Sources
Energy Sources are basically divided into two categories:
a) Non Renewable energy Sources and
b) Renewable Energy Sources.
Some of these sources are further classified as conventional or non conventional.
a) Non Renewable Energy Sources : mainly defined as conventional ( they have been
using these sources for over a century ) derived in conventional conversion
processes to produce useful energy such as in power plants refineries, Internal
Combustion Engines, external combustion engines etc. Examples : Coal, Fossil Fuel
based (Petroleum based) oil and Gas products, Nuclear, etc. Why do we call these
sources Non Renewable? They are not replenished in a reasonable time span may be
to renew these sources it may take millions of years. Nuclear is an exception, where
it can never be replenished even after millions of years.
SOLID FUELS
Hard coal – Coal that has a high degree of coalification with a gross calorific value above
23,865 kJ/kg (5,700 kcal/kg) on an ash-free but moist basis, There are two sub-categories
of hard coal: (i) coking coal and (ii) other bituminous coal and anthracite (also known as
steam coal). Coking coal is a hard coal with a quality that allows the production of coke
suitable to support a blast furnace charge. Steam coal is coal used for steam raising and
space heating purposes and includes all anthracite coals and bituminous coals not classified
as coking coal.
Lignite – One of the two sub-categories of brown coal. Brown coal is coal with a low degree
of coalification which retained the anatomical structure of the vegetable matter from which
it was formed. It has a gross calorific value (on a moist ash free basis) is less than 23,865
kJ/kg (5,700 kcal/kg). Brown coal comprises: (i) lignite - with a gross calorific value less
than 17,435 kJ/kg (4,165 kcal/kg) and greater than 31 percent volatile matter on a dry
basis and (ii) sub-bituminous coal - with a gross calorific value between 17,435 kJ/kg (4,165
kcal/kg) and 23,865 kJ/kg (5,700 kcal/kg) containing more than 31 percent volatile matter
on a dry basis.
Peat – A solid fuel formed from the partial decomposition of dead vegetation under
conditions of high humidity and limited air access (initial stage of coalification). Its principal
use is as a household fuel.
Oil shale – A sedimentary rock containing a high proportion of organic matter (kerogen),
which can be converted to crude oil or gas by heating.
LIQUID FUELS
Crude oil – A mineral oil consisting of a mixture of hydrocarbons of natural origin, yellow
to black in color, of variable density and viscosity. Can be extracted by oil wells or
extracted from bituminous minerals such as shales and bituminous sand, and oils from coal
liquefaction.
Petroleum products – Comprise the liquid fuels, lubricant oils and solid and semi-solid
products obtained by distillation and cracking of crude petroleum, shale oil, or semi-refined
and unfinished petroleum products. These may include but not limited to Aviation Gasoline,
Motor Gasoline, Diesel, Jet Fuel, Kerosene, Naphtha, Furnace Oil, Residual Oil, Bitumen, LPG
( Propane and Butane mainly)
GASEOUS FUELS
Natural gas – Gases consisting mainly of methane occurring naturally in underground
deposits. It includes both non-associated gas (originating from fields producing only
hydrocarbons in gaseous form) and associated gas (originating from fields producing both
liquid and gaseous hydrocarbons), as well as methane recovered from coal mines.
b) Renewable Energy Sources : most of the time these sources are defined as nonconventional sources except Major Hydro sources as they have been rediscovered as
sources to be converted to useful energy by using age old principles but using
modern technologies. Examples: Conventional Renewable sources - Major Hydro,
c) Non-Conventional Renewable sources - Solar both Photovoltaic (PV) and thermal
, wind, biomass, small and mini hydro, geothermal ( Is it renewable? again a
misnomer but classified under renewables) etc.
Biogasoline – Ethanol (ethyl alcohol) and methanol (methyl alcohol) for use as a fuel.
Ethanol can be produced from sugar, starch and cellulose and is used mainly in transport
(on its own or blended with gasolene). Methanol can be produced from wood, crop residues,
grass, and the like and can be used in internal combustion engines.
Biodiesel – It refers to oil derived from biological sources and modified chemically so that
it can be used as fuel in compression ignition (diesel) internal combustion engines, or for
heating. Biological sources of biodiesel include, but are not limited to, vegetable oils. Very
often
Biodiesel
is
used
in
combination
with
Petroleum
Diesel.
Biogas – By-product of the fermentation of biomass, principally animal wastes, by bacteria.
It consists mainly of methane gas and carbon dioxide
d) Other Traditional Fuels : Fuel wood, Bagasse, Charcoal, Animal Waste, Vegetable Waste,
Municipal Waste, Industrial Waste, etc.
1.2 Classification of Forms of Energy
1.2.1 Primary energy - is an energy form found in nature that has not been subjected to any
conversion or transformation process. It is energy contained in raw fuels, and other forms of energy
received as input to a system. Primary energy can be non-renewable or renewable All forms of energy
that occur naturally and can be used directly to do some useful work - capable of obtaining useful
energy or used as primary inputs to obtain secondary forms of energy, such as electricity, heat,
motive energy etc. Examples: Water at an elevation, Solar energy, wind, biomass, Coal, Crude Oil,
Natural Gas, Uranium etc.
1.2.2 Secondary Energy -
Primary energy sources are transformed in energy
conversion processes to more convenient forms of energy (that can directly be used by society), such
as electrical energy, refined fuels, or synthetic fuels such as hydrogen fuel. These forms are also
called energy carriers and correspond to the concept of "secondary energy".
1.2.3 Primary electricity
refers to electrical energy of geothermal, hydro, nuclear, tide,
wind, wave/ocean and solar origin. Its production is assessed at the heat value of electricity (3.6
TJ/million kWh).
1.2.4 Secondary electricity is defined as thermal electricity, which comprises conventional
thermal plants of all types, whether or not equipped for the combined generation of heat and
electric energy. Accordingly, they include steam-operated generating plants, with condensation and
plants using internal combustion engines or gas turbines whether or not these are equipped for
heat recovery.
A unit of primary electricity may be equated theoretically with the amount of coal or oil required to
produce an equivalent unit of thermal electricity. In the case of hydro-electricity, the ideal condition
(assuming 100% efficiency), is taken to be 3.6 TJ per million kWh which corresponds to 0.123 tons
of coal equivalent or 0.086 tons of oil equivalent per 1,000 kWh. In the case of nuclear and
geothermal electricity, the average condition is assumed (33% and 10% efficiency respectively)
and is taken to be 10.909 and 36 TJ per million kWh which corresponds to 0.372 and 1.228 tons of
coal equivalent or 0.261 and 0.860 tons of oil equivalent per 1,000 kWh.
The procedure to convert from original units to common units and from one common unit to
another is as follows: Data in original units (metric tons, kWh, m3 TJ) multiplied by specific
conversion factors gives Tons of Coal Equivalent (TCE) or 1 TCE multiplied by 0.0293076 gives TJ
and 1 TCE multiplied by 0.7 gives Tons of Oil Equivalent TOE.
The base used for coal equivalency comprises 7,000 calories per gram.
One TCE is defined as 7 x 106 kcal or 0.0293076 TJ.
One TOE is defined as 10.0 x 106 kcal or 0.041868 TJ (1 calorie =4.1868 joules).
Source: United Nations Statistics Division
Table 1.2.1 Examples of Conversion of Primary Energy to Secondary
Energy
Primary energy sources
Non-
Fossil
renewable
fuels
Secondary
Energy systems
Oil (or crude oil)
Oil refinery
Coal or natural gas
Fossil fuel power station
Energy
or
Energy carriers(main)
Fuel oil
sources
Mineral
fuels
Renewable
Enthalpy, mechanical work or
electricity
Nuclear power plant
Natural uranium
Electricity
(thermonuclear fission)
Solar energy
Photovoltaic power plant
Electricity
converted
sources
to
by
Solar
power
tower,
solar
furnace
Enthalpy
Mechanical
work
or
work
or
Wind energy
Wind farm
Falling and flowing
Hydro
water, tidal
wave, tidal power station
electricity
Biomass sources
Biomass power station
Enthalpy or electricity
Geothermal energy
Geothermal power station
Enthalpy or electricity
Source : Wikipedia.
electricity
power
plant,
Mechanical
1.3 Global Energy Situation
The table below shows the Primary Energy Production and consumption of commercial energy in
the world in the few years compiled by the UN statistical office. Please note this table does not
include the forms of energy not traded in any formal markets; this also exclude traditional forms of
energy such as fuel wood used in the households and small and medium scale industries.
Table 1.3.1 Production and consumption of commercial energy
Thousand metric tons of oil equivalent and kilograms per capita
Year
Primary Energy Production
Consumption
Total
Solids
Liquids
Gas
Electricity*
Per
Capita
Total
Solids
Liquids
Gas
Electricity
2008
10940354
3422619
4082704
2893280
541751
1498
10114239
3355555
3343015
2874125
541545
2009
10837694
3473055
3998677
2815956
550006
1469
10038443
3358399
3309847
2819963
550235
2010
11379332
3693812
4083090
3023157
579273
1523
10532449
3533686
3374421
3044571
579771
2011
11684148
3843962
4130416
3133620
576150
1547
10822618
3752027
3383896
3109553
577142
*Primary electricity - refers to electrical energy of geothermal, hydro, nuclear, tide, wind,
wave/ocean and solar origin. Its production is assessed at the heat value of electricity (3.6
TJ/million kWh).
Source: 2011 Energy Statistics Yearbook – United Nations Statistics Division
Apart from the UN statistical Office (UNSO), the Department of Energy of the USA and World Energy
Council collects global energy statistics and publishes periodic reports giving their own analysis of
the global energy issues. These publications give insights to the world energy scenarios and also an
indication of the world energy outlook in the years to come. These reports assist the world
economies to forecast and plan their energy production and consumption patterns to suit the future
energy outlook. The more recent global environmental impacts have had a significant bearing on
the energy plans for the future.
Global Energy Reserves depend on a variety of factors, there is the notion of probable reserves also
known as Estimated additional amount in place, then there is the notion of possible energy reserves
also known as Proved recoverable reserves and proven reserves also known as Proved amount in place.
Proved amount in place is the resource remaining in known deposits that has been carefully measured
and assessed as exploitable under present and expected local economic conditions with existing
available technology
Proved recoverable reserves are the reserves within the proved amount in place that can be recovered
in the future under present and expected local economic conditions with existing available technology
Estimated additional amount in place is the indicated and inferred reserves additional to the proved
amount in place that is of foreseeable economic interest. It includes estimates of amounts which could
exist in unexplored extensions of known deposits or in undiscovered deposits in known fossil fuel bearing areas, as well as amounts inferred through knowledge of favourable geological conditions.
Speculative amounts are not included.
RPR = (amount of known resource) / (amount used per year)
Figure 1.3.1
Figure 1.3.2.
Figure 1.3.3 Total Primary Energy Supply Evolution
Table 1.3.2: Key Global Energy indicators for 1993, 2011 and 2020
Energy Source
1993
2013
2020
TPES* Mtoe
9 532
14 092
17 208
Percentage
increase from
1993 to 2020
48%
Coal Mt
4 474
7 520
10 108
68%
Oil Mt
3 179
3 973
4 594
25%
Natural
Gas 2 176
bcm
Nuclear TWh
2 106
3 518
4 049
62%
2 386
3 761
13%
Hydro
TWh
2 767
3 826
21%
Power 2 286
Biomass Mtoe
Other
renewable**
TWh
1 036
44
1 277
515
1 323
1 999
23%
n/a
* TPES Total Primary Energy Suply
**Includes figures for all renewables, except Hydro
Source: 1993, 2020 figures from Energy for Tomorrow’s World (WEC, 1995). 2011 figures from World
Energy
Resources (WEC, 2013). Other renewables 2020 figure from World Energy Scenarios report (WEC, 2013
Table 1.3.4 Global Energy Reserves , Production Rates and Reserves to
Production Ratios
Reserves
2011
891,530
Coal (Mt)
223,454
Oil (Mt)
Natural Gas 209,742
Source
(bcm)
R/P years
Production
1993
1,031,610
140,676
141,335
2011
7,520
3,973
3,518
1993
4,474
3,179
2,176
> 100
56
55
Table 1.3.5 Global Installed Capacity and Annual Production of Nuclear
and Renewable Energy Sources
Source
Nuclear
Hydro
Power
Wind
Solar PV
Installed Capacity (MW)
2011
1993
364,078
340,295
946,182
609,264
Actual Generation (GWh)
2011
1993
2,385,903
2,106 000
2,767,118
2,285,960
238,049
n/a
377,613
68,850
n/a
52 878
n/a
n/a
1.3.1 Types of Energy Resources
a) Coal as an Energy Source:
Coal is playing an important role in delivering energy access, because it is widely available, safe,
reliable and relatively low cost.
Despite its poor environmental credentials, coal remains a crucial contributor to energy supply in
many countries. Coal is the most wide-spread fossil fuel around the world, and more than 75
countries have coal deposits. The current share of coal in global power generation is over 40%, but
it is expected to decrease in the coming years, while the actual coal consumption in absolute terms
will grow. Although countries in Europe, and to some extent North America, are trying to shift their
consumption to alternative sources of energy, any reductions are more than offset by the large
developing economies, primarily in Asia, which are powered by coal and have significant coal
reserves. China alone now uses as much coal as the rest of the world.
The continuing popularity of coal becomes particularly obvious when compared to the current
production figures with those from 20 years ago. While the global reserves of coal have decreased
by 14% between 1993 and 2011, the production has gone up by 68% over the same time period.
Compared to the 2010 survey, the most recent data shows that the proved coal reserves have
increased by 1% and production by 16%.
The future of coal depends primarily on the advance of clean coal technologies to mitigate
environmental risk factors, CO2 emissions, in particular. Today Carbon Capture Utilisation and
Storage (CCS/CCUS) is the only large-scale technology which could make a significant impact on the
emissions from fossil fuels. It is, however, still at the pilot stage and its future is uncertain, mainly
because of the high costs and efficiency penalty.
Coal will play a major role in supporting the development of base-load electricity where it is most
needed. Coal-fired electricity will be fed into national grids and it will bring energy access to
millions, thus facilitating economic growth in the developing world.
Figure 1.3.4 World Coal Reserves
b) Oil as an Energy Source:
The oil crisis in the 1970s and 1980s resulted in sky-rocketing price of oil. In the following years,
heated discussions about “peak oil” were based on the expectation of the world running out of oil
within a few decades. Now, the peak oil issue is not an issue any longer, however since oil is a finite
resource this issue will return in the future. Global oil reserves are almost 60% larger today than
20 years ago, and production of oil has gone up by 25%. If the unconventional oil resources,
including oil shale, oil sands, extra heavy oil and natural bitumen are taken into account, the global
oil reserves will be four times larger than the current conventional reserves. Oil still remains the
premier energy resource with a wide range of possible applications. Its main use however, will be
shifting towards transport and the petrochemical sector. In future oil’s position at the top of the
energy ladder will face a strong challenge from other fuels such as natural gas.
The oil resource assessments have increased steadily between 2000 and 2009, and about a half of
this increase is due to the reclassification of the Canadian oil sands and the revisions undertaken in
major OPEC countries: Iran, Venezuela and Qatar. Compared to the 2010 survey, the proved oil
reserves increased by 37% and production by 1%. Oil is a mature global industry but a number of
countries, for political reasons, have limited the access of international companies.
Figure 1.3.5 World Oil Reserves
c) Natural Gas as an Energy Source:
Natural gas is yet another fossil fuel resource that will continue making significant contribution to
the world energy economy. The cleanest of all fossil-based fuels, natural gas is plentiful and flexible.
It is increasingly used in the most efficient power generation technologies, such as, Combined Cycle
Gas Turbine (CCGT) with conversion efficiencies of about 60%. The reserves of conventional
natural gas have grown by 36% over the past two decades and its production by 61%. Compared to
the 2010 survey, the proved natural gas reserves have grown by 3% and production by 15%.
The exploration, development and transportation of gas usually requires significant upfront
investment. Close coordination between investment in the gas and power infrastructure is
necessary.
In its search for secure, sustainable and affordable supplies of energy, the world is turning its
attention to unconventional energy resources. Shale gas is one of them. It has turned upside down
the North American gas markets, and is making significant strides in other regions. The emergence
of shale gas as a potentially major energy source can have serious strategic implications for
geopolitics and the energy industry.
Figure 1.3.6 Natural Gas Reserves
d) Uranium and Nuclear as an Energy Source:
The nuclear industry has a relatively short history: the first nuclear reactor was commissioned in
1954. Uranium is the main source of fuel for nuclear reactors. Worldwide output of uranium has
recently been on the rise after a long period of declining production caused by oversupply following
nuclear disarmament. The present survey shows that total identified uranium resources have
grown by 12.5% since 2008 and they are sufficient for over 100 years of supply based on current
requirements.
Total nuclear electricity production has been growing during the past two decades and reached an
annual output of about 2600 TWh by the mid-2000s, although the three major nuclear accident
have slowed down or even reversed its growth in some countries. The nuclear share of total global
electricity production reached its peak of 17% by the late 1980s, but since then it has been falling
and dropped to 13.5% in 2012. In absolute terms, the nuclear output remains broadly at the same
level as before, but its relative share in power generation has decreased, mainly due to Fukushima
nuclear accident.
Japan used to be one of the countries with a high share of nuclear (30%) in its electricity mix and
high production volumes. Today, Japan has only two of its 54 reactors in operation. The rising costs
of nuclear installations and lengthy approval times required for new construction have had an
impact on the nuclear industry. The slowdown has not been global, as new countries, primarily in
the rapidly developing economies in the Middle East and Asia, are going ahead with their plans to
establish a nuclear industry.
e) Hydro Power as an Energy Source:
Hydro power provides a significant amount of energy throughout the world and is present in more
than 100 countries, contributing approximately 15% of the global electricity production. The top 5
largest markets for hydro power in terms of capacity are Brazil, Canada, China, Russia and the
United States of America. China significantly exceeds the others, representing 24% of global
installed capacity. In several other countries, hydro power accounts for over 50% of all electricity
generation, including Iceland, Nepal and Mozambique for example. During 2012, an estimated 27–
30GW of new hydro power and 2–3GW of pumped storage capacity was commissioned.
In many cases, the growth in hydro power was facilitated by the lavish renewable energy support
policies and CO2 penalties. Over the past two decades the total global installed hydro power
capacity has increased by 55%, while the actual generation by 21%. Since the last survey, the global
installed hydro power capacity has increased by 8%, but the total electricity produced dropped by
14%, mainly due to water shortages.
f) Wind Power as an Energy Source:
Wind is available virtually everywhere on earth, although there are wide variations in wind
strengths. The total resource is vast; estimated to be around a million GW ‘for total land coverage’.
If only 1% of this area was utilized, and allowance made for the lower load factors of wind plants
(15–40%, compared with 75–90% for thermal plants) that would still correspond, roughly, to the
total worldwide capacity of all electricity-generating plants in operation today.
World wind energy capacity has been doubling about every three and a half years since 1990. Total
capacity at the end of 2011 was over 238GW and annual electricity generation around 377TWh,
roughly equal to Australia’s annual electricity consumption. China, with about 62GW, has the
highest installed capacity while Denmark, with over 3GW, has the highest level per capita. Wind
accounts for about 20% of Denmark’s electricity production. It is difficult to compare today’s
numbers with those two decades ago, as measuring methodologies and tools are different.
As governments begin to cut their subsidies to renewable energy, the business environment
becomes less attractive to potential investors. Lower subsidies and growing costs of material input
will have a negative impact on the wind industry in recent years.
g) Solar PV as an Energy Source:
Solar energy is the most abundant energy resource and it is available for use in its direct (solar
radiation) and indirect (wind, biomass, hydro, ocean etc.) forms. About 60% of the total energy
emitted by the sun reaches the Earth’s surface. Even if only 0.1% of this energy could be converted
at an efficiency of 10%, it would be four times larger than the total world’s electricity generating
capacity of about 5,000GW. The statistics about solar PV installations are patchy and inconsistent.
The use of solar energy is growing strongly around the world, in part due to the rapidly declining
solar panel manufacturing costs. For instance, between 2008–2011 PV capacity has increased in the
USA from 1,168MW to 5,171MW, and in Germany from 5,877MW to 25,039MW. The anticipated
changes in national and regional legislation regarding support for renewables is likely to moderate
this growth.
h) Bio-energy and Waste as an Energy Source:
Bioenergy is a broad category of energy fuels manufactured from a variety of feedstocks of
biological origin and by numerous conversion technologies to generate heat, power, liquid biofuels
and gaseous biofuels. The term “traditional biomass” mainly refers to fuelwood, charcoal, and
agricultural residues used for household cooking, lighting and space-heating in developing
countries. The industrial use of raw materials for production of pulp, paper, tobacco, pig iron so on,
generates byproducts such as bark, wood chips, black liquor, agricultural residues, which can be
converted to bioenergy.
The share of bioenergy in TPES has been estimated at about 10% in 1990. Between 1990 and 2010
bioenergy supply has increased from 38 to 52EJ as a result of growing energy demand. New policies
to increase the share of renewable energy and indigenous energy resources are also driving
demand. However, it is difficult to make accurate comparisons with earlier figures because of poor
availability and low level of standardization of data.
1.3.2 The World Energy Outlook in the past 20 years









sharp increase in the price of oil since 2001 after 15 years of moderate oil prices
financial crisis and slow economic growth with drastic reduction in energy consumption in
large economies
shale gas in North America
Fukushima Daiichi nuclear accident
The volatile political situation in the energy supplying countries in the Middle East and
North Africa, “The Arab Spring”
lack of global agreement on climate change mitigation
collapse of CO2 prices in the European Emissions Trading System exponential growth in
renewables, in particular in Europe due to generous subsidies for producers which can
become a problem instead of an opportunity deployment of ‘smart’ technologies
energy efficiency potential still remaining untapped
growing public concerns about new infrastructure projects, including energy projects and
their impact on political decision-making process
The above Outlook has resulted in:

The changes in the energy industry over the past 20 years have been significant. The growth
in energy consumption has been higher than anticipated even in the high-growth scenarios.
The energy industry has been able to meet this growth globally assisted by continuous
increment in reserves’ assessments and improving energy production and consumption
technologies. The results of the 2013 WEC World Energy Resources survey show that there
are more energy resources in the world today than 20 years ago, or ever before.

It is obvious that moving away from fossil fuels will take years and decades, as coal, oil and
gas will remain the main energy resources in many countries. Fuel-switching does not
happen overnight. The leading world economies are powered by coal: about 40% of
electricity in the United States and 79% of the electricity in China is generated in coal fired
thermal plants. These plants will continue to run for decades. The main issue for coal is the
CO2 penalty.

Contrary to the expectations of the world running out of oil within a few decades, the so
called notion of ‘peak oil’ which prevailed 20 years ago, has almost been forgotten. The
global crude oil reserves are almost 60% larger today than in 1993 and the production of oil
has gone up by 20%. If the unconventional oil resources such as oil shale, oil sands, extra
heavy oil and natural bitumen are taken into account, the oil endowment of the world could
be quadrupled. An increasing share of oil will be consumed in the rapidly growing transport
sector, where it will remain the principal fuel.

Natural gas is expected to continue its growth spurred by falling or stable prices, and thanks
to the growing contribution of unconventional gas, such as shale gas. In addition to power
generation, natural gas is expected to play an increasing role as a transport fuel.

The future of nuclear energy is uncertain. While some countries, mainly in Europe, are
making plans to withdraw from nuclear, other countries are looking to establish nuclear
power generation.

The development of renewables, excluding large hydro, has been considerably slower than
expected 20 years ago. Despite the exponential growth of renewable resources in
percentage terms, in particular wind power and solar PV, renewable energy still accounts
for a small percentage of TPES in most countries. Their contribution to energy supply is not
expected to change dramatically in the coming years. The continuing growth of renewables
strongly depends on subsidies and other support provided by governments. Integration of
intermittent renewables in the electricity grids also remains an issue, as it results in
additional balancing costs for the system and thus higher electricity bills.

Energy efficiency helps addressing the “energy trilemma” and provides an immediate
opportunity to decrease energy intensity. This will achieve energy savings and reduce the
environmental impacts of energy production and use.
1.3.3 In Summary:
Finally, demand for energy will continue to grow. Even if global energy resources seem to
be abundant today, there are other constraints facing the energy sector, above all,
significant capital investment in developing and developed economies is needed. The
environment and climate, in particular, pose an additional challenge. Clean technologies will
require adequate financing, and consumers all over the world should be prepared to pay
higher prices for their energy than today. Energy is global and to make the right choices,
decision makers should look at the global picture and base their decisions on a thorough life
cycle analysis and reliable energy information.
One of the major challenges facing the world at present is that approximately 1.2 billion
people live without any access to modern energy services. Access to energy is
fundamental pre-requisite for modern life and a key tool in eradicating extreme poverty
across the globe.
1.4 Sri Lanka Energy Situation
1.4.1 Energy Resources Used in Sri Lanka
Both indigenous resources available in the country (such as biomass and hydro power) and
imported fossil fuels are the main resources used in the country to fulfill its energy needs.
a) Indigenous Energy Resources Available in Sri Lanka
Attributed to geo-climatic settings, Sri Lanka is blessed with several types of renewable energy
resources. Some of them are widely used and developed to supply the energy requirements of the
country. Others have the potential for development when the technologies become mature and
economically feasible for use.
Following are the main renewable resources available in Sri Lanka.
 Biomass
 Hydro Power
 Solar
 Wind
In addition to the above indigenous renewable resources, the availability of petroleum within Sri Lankan
territory is being investigated. Apart from the above and for some Peat resources in the Muthurajawela
swamp, there are no known commercially tradable energy resources in the country.
i) Biomass
Large quantities of firewood and other biomass resources are used for cooking in rural households and
to a lesser extent, in urban households. A large portion of energy needs of the rural population is
fulfilled by firewood. There are other uses of biomass for energy in the country, especially for thermal
energy supply in the industrial sector.
ii) Hydro
Hydro power is a key energy source used for electricity generation in Sri Lanka. A large share of the
major hydro potential has already been developed and delivers valuable low cost electricity to the
country. Currently, hydro power stations are operated to supply both peaking, intermediate and base
load electricity generation requirements. A substantial number of small hydro power plants operate
under the Standardized Power Purchase Agreement (SPPA) and many more are expected to join the
fleet during the next few years.
iii)Solar
Two solar power plants at the Hambantota Solar Park, are operated at a relatively low level, with annual
plant factors of 16.01% from the 737 kW plant and 15.04% from the 500 kW. This is mainly due to
technical issues and overcast weather conditions which prevailed in 2013. In a typical year, both plants
operate with plant factors closer to 18%.
Approval has been granted for three 10 MW Solar PV plants and several more solar based power plants
with storage capability, however no appreciable progress has been achieved by the developers. This
may be due to the unfamiliarity of solar technologies to the local financiers and low skills of project
developers.
More than 100,000 Solar Home Systems were installed during several attempts to introduce standalone
systems to provide basic lighting and TV applications in rural households but there are no reliable data
to indicate how many of them are in actual operation. The main reasons of disuse of these systems may
be attributed to:
 Rapid state sponsored Rural Electrification providing more versatile source of reliable electricity.
 The maintenance of the electricity infrastructure is taken care by the CEB
 Most of the system limitations (which were meant only for lighting and TV applications) were ill
understood by the users.
 Mainly a private sector driven marketing mechanism and lack of expertise in the private sector
to maintain them
 High initial costs and lack of understanding of regular maintenance of the system example the
batteries and other basic elements.
This effort has given way to solar roof top units spurred by high cost of grid electricity to households in
the high consuming categories. Net-metering scheme which was introduced in 2010, reached maturity
much sooner than expected with more than fifty service providers connecting more than 3 MW of roof
top PV systems to the national grid as at end 2013. This development in turn contributed towards
reaching the policy target of generating 10% of electricity from NRE sources well ahead of the time
target of 2015. By end 2013, approximately 550 installations operated, with a capacity of 3.3 MW. The
estimated generation was 4.7 GWh. Generation statistics were estimated based on average energy
yields expected in a Typical Meteorological Year (TMY).
iv)Wind
Wind development was first initiated as a wind driven water pumping systems for irrigation purposes.
This initiative supported by the Government of Netherlands in late 1970’s and early 80’s gave way for a
detailed wind resource data collection initiative in mid 1980’s. in the South Eastern and North Western
quarters of the country with a few monitoring stations in the central hills. This was the first step towards
introduction of wind for power generation. The first pilot scale 3MW wind power project was installed
with world Bank assistance in the early 1990’s.
With the availability of more data on wind resources in the entire country conducted with assistance of
the USAID, so called NREL studies, Sri Lanka was identified as a high wind resource country. With this
revelation and the Small Power Purchase Agreement spurred the installation of several 10MW wind
power projects mainly in the North Western Puttalam area now with about 75 MW installed in the
country.
With the wider acceptance of the need to move away from the prevalent method of developing wind
resources through small scale private initiatives, the Mannar Island wind resource assessments were
initiated. Two studies funded by ADB under the Technical Assistance Programme TA 8167 - SRI Capacity
Building for Clean Power Development, were completed, leading to valuable addition of knowledge on
the potential of wind as a major contributor to the energy resources map of Sri Lanka and the limits of
permissible penetrations of various renewable energy resources in the national grid.
v)Oil/Gas Exploration
A significant milestone was achieved in the oil and gas exploration work in Sri Lanka, with the granting of
the exploration licenses for the Mannar Basin Block SL2007-01-001, to Cairn Lanka (Pvt) Ltd (CLPL) and
entering into an agreement with the Government on July 7, 2008. CLPL has completed its work
commitment for the first phase successfully, which resulted in two successive gas and condensate
discoveries in two of the three exploration wells drilled in 2011 and a fourth well in the second phase in
2013. The investments made in this venture exceeded USD 200 million, which is a clear indication of the
economic impact of this sector that can make in Sri Lanka. Subsequent to the first licensing round, the
Government of Sri Lanka (GoSL) through PRDS launched the second licensing round, opening up more
blocks (thirteen blocks) in the Cauvery and Mannar Basins for international operators. The bid round
was closed on November 29, 2013 and one bid each for three blocks have been received from the
existing CLPL for Mannar Block 5, while a bid for two blocks in Caurvery Basin blocks, C2 and C3 was
received from Singapore-based Bonavista Energy Corporation.
The Government is yet to declare a policy on gas and a roadmap for commercialisation of the gas
discoveries. There is immense potential for economic diversification through the identification of
services and industries which may be developed locally to provide not only inputs to these activities, but
also to market and distribute the final output. Consequently this is expected to make a significant
contribution to the economic growth of the country while creating numerous direct and indirect
employment opportunities. No decisions have been made on the second round of bidding, and the
industry is hopeful of a clear roadmap, and fear the loss of already acquired capacity and knowledge
may dissipate if further delays are experienced in this nascent industry.
Table 1.4.1 Indigenous Energy Resources in Sri Lanka and their Applications

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Table 1.4.2 Imported Energy Resources used in Sri Lanka and their Applications

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
1.4.2 Energy Supply in Sri Lanka
The four main sources of Energy Supply in the country are:




Biomass
Petroleum (Imported)
Coal (Imported)
Electricity (Generated from both indigenous and imported sources)
Energy needs of the country are fulfilled either directly by primary energy sources such as biomass,
hydro power and other new and renewable sources of energy, or by secondary sources such as
electricity produced using coal and petroleum, or petroleum products either imported directly or
produced at the refinery.
The primary energy supply of Sri Lanka consists of biomass, petroleum, coal, major hydro and new and
renewable energy.
Biomass is the most common source of energy supply in the country, of which the largest use is in the
domestic sector for cooking purposes. Due to the abundant availability, only a limited portion of the
total biomass use is channeled through a commodity market and hence the value of the energy sourced
by biomass is not properly accounted. However, this situation is fast changing with many industries
switching fuel to reduce the cost of thermal energy. As a result, a sizable fuelwood supply is emerging to
supply the new demand, albeit many questions on sustainability.
Table 1.4.3 – Primary Energy Supply by Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
a) Sources of Production of Biomass
Biomass comes in different forms. Following are the most common forms of biomass available in Sri
Lanka.




Fuel wood
Municipal Waste
Industrial Waste
Agricultural Waste
Table 1.4.4 Traditional Energy Resources and their Conversions

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
b) Energy Supply from Petroleum
Sri Lanka totally depends on petroleum imports, both in the form of crude oil and as finished products.
The importation of crude oil and finished petroleum products has increased over time. In 2013 however,
the imported quantity of crude oil increased by 6.7%, while finished product imports decreased by
32.4%. This decrease is visible nearly in all fuels used in transport, power generation and industries.
Table 1.4.5 Crude Oil and Petroleum product imports
.

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
c) Energy Supply from Coal
The demand for coal continued to rise in 2013 as well, owing to the operation of the coal-fired power
Plant. With the commissioning of the entire Coal Power plant in 2014, of 900 MW this coal importation
is expected to increase up to 2.5 Mt per year.
Table 1.4.6 Coal Imports in ‘000t
Figure 1.4.1 Solid and Liquid Fuel Imports to the Country

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
d) Energy Supply from Grid Electricity Production
As the sole operator of the Sri Lankan power system, until 1997, CEB owned and operated almost all the
power plants in the national grid. Starting from 1997, many IPPs entered the electricity market,
supplying electricity to the national grid. IPPs operate by entering into long term agreements with CEB.
These contracts are individually executedunder different terms and conditions. By 2013, only seven IPPs
were in operation.
In the early stages, major hydro played a dominant role in power generation and continued until about
1996. Once the economically feasible major hydro schemes reached their saturation, the share oil based
thermal plants in power generation increased. Commencing from the Year 2011, Coal based thermal
power plants are being commissioned. There are no plans to install any more oil based power plants
except perhaps to meet peaking capacity needs in the future.
Different Categories of Power Plants in the National Grid:
(i) CEB hydro power plants
(ii) CEB non-conventional power plants (only wind power at present)
(iii) CEB thermal power plants (oil fired and coal powered)
(iv) Independent Power Producers (IPPs) (presently oil-fired thermal power plants)
(v) Small Power Producers (SPPs) including, power supply from small hydro , wind, solar, biomass
sources and net metered projects.
Apart from the above there are off grid power supplies in some industries such as sugar industry and
some other small scale industries where they have biomass related power generation sources. There are
also a number of village electrification schemes and estates using their own mini hydro power plants of
very small capacities. Most of these schemes are either being upgraded so that they can be connected
to the grid or going into disuse due to the expansion of the grid.
Both CEB and private power producers generate electricity and supply to the national grid. All the large
scale hydro power plants in the country are owned by the CEB. There are also oil-fired thermal power
plants and the coal power plant owned by CEB. In addition to its own power plants, CEB as the single
buyer, purchases electricity to the national grid from private Independent Power Producers (IPPs) who
have entered into contracts with the CEB. All large IPPs are oil fired, while many Small Power Producers
(SPPs) generating electricity from renewable based power plants sell power to the national grid based
on a Standardized Power Purchase Agreement (SPPA).
Table 1.4.7 Total Installed Capacity in the Country

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Figure 1.4.4 The total installed capacities serving the grid by type of power
plant.

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
In the Year 2014, a further 600 MW of Coal Power was added to the national Grid. Hence the power
generation significantly changed from a predominantly hydro - oil based system to a predominantly
hydro – Coal based system. Table 1.4.7and Figure 1.4.4 shows the total Installed capacity of the system
in 2013 and Table 1.4.8 shows the Generation statistics of the system in 2013 and 2014. Please note the
significant changes that have taken place in the year 2014 compared to the year 2013. It is also worthy
to note the contribution from hydro sources which stood at an all time record generation of nearly 6000
GWh dropping to 3600 GWh in 2014. This shortfall has been met mainly by Coal power plant.
Table 1.4.8 Generation Statistics 2013 and 2014.
Source: CEB Statistical Digest 2014
i) Supply from Major Hydro
The topography of the country provides an excellent opportunity to harness the energy stored in
riverwater which flows from the central hills of the country to the Indian Ocean surrounding the island.
Although the use of hydro resource for direct motive power was common in yesteryears, mainly to
provide motive power to over 600 tea factories in the central hill country in the later part of the 19th
century; most of these went into disuse with the provision of grid electricity using major hydro power
plants.
The major hydropower development commenced with the Kehelgamu Oya – Maskeli Oya Project
popularly known as the Laxapana Project. Subsequently with the launching of the Multipurpose
Mahaweli Project and later other hydro power projects total installed capacity of hydro power stands at
1200 MW.
Electricity production has become the sole use of the hydro as an energy resource in recent times apart
from its strategic use in irrigation and drinking water . The contribution of hydro as an energy supply
source is always through its secondary form, which is electricity.
Sri Lanka has two main hydro power complexes; namely Laxapana and Mahaweli, each consisting of
several power plants. Laxapana complex is based on Kelani River and its tributaries, while Mahaweli
complex is based on Mahaweli River and its tributaries. Other than these major schemes, there are two
independent large scale hydro power stations, namely Samanalawewa on Walawe basin and Kukule
Ganga on Kalu ganga basin, while small scale power plants such as Inginiyagala and Uda Walawa are also
generating hydropower using their respective irrigation reservoir storages owned and operated by CEB.
a)Laxapana Complex
Laxapana Complex is a result of Kehelgamu – Maskeli Oya development project. The five power
stations in the Laxapana Complex are situated along Kehelgamu oya and Maskeli Oya. The main
reservoir at the top of Kehelgamu oya is Castlereagh reservoir. The rain water from the catchment
above the reservoir flowing along the Kehelgamu Oya gets collected in this reservoir. Main reservoir
associated with Maskeli oya is Maussakelle reservoir.
Water collected in the Castlereagh reservoir is brought along a power tunnel to Wimalasurendra
power station to operate the two hydro turbine-generators, each 25 MW in capacity. Water released
from Wimalasurendra power plants after operation, gets collected in Norton pond. This water is
brought along another tunnel to Old Laxapana power station to operate five turbine-generator units,
where 03 units are of 8.33 MW and other two units of 12.5 MW. Water released after operations of Old
Laxapana machines gets collected in Laxapana pond.
Similarly. Water collected in Maussakelle reservoir is taken along a tunnel to operate the two Canyon
machines of 30 MW each. Water discharged after operations get collected in Canyon pond. This water
is brought along another tunnel to operate the two New Laxapana machines which are 50 MW each.
These two machines release the water to Laxapana pond as Old Laxapana machines.
Water collected in Laxapana pond is taken along a tunnel to operate the two machines, which are 37.5
MW each, at Samanala power station at Polpitiya. Water released from Samanala machines flow into
the Kelani river, which is formed by Kehelgamu oya and Maskeli oya.
The Total Installed Capacity of Laxapana Complex is 335 MW mainly operated for power generation
purposes.
Figure 1.4.2 Laxapana Complex
b)Mahaweli Complex
The first reservoir in Mahaweli complex is the Kotmale reservoir which gets water after generation
of power in the run-of-the river power plant at Upper Kotmale power station generating 150 MW.
Water is taken to operate the three turbine generator units (each of 67 MW) at Kotmale power
station. Water released after operations flows along the river into the Polgolla barrage, which is a
small pond. From Polgolla barrage, water is diverted to North Central province for irrigation and
other purposes. This is done by carrying the water through a long tunnel to Ukuwela power station
to operate two 20 MW machines. Water released after operating these 02 units flow to Bowatenna
reservoir. Water is sent to Anuradhapura district direct from Bowatenna reservoir, and water used
to operate the 40 MW machine at Bowatenna power station is sent to Elahera anicut, again to
distribute water for irrigation.
When water spills over the Polgolla barrage, it flows along the Mahaweli river to the large Victoria
reservoir. The three 70 MW hydro units at Victoria power station operates using water from
Victoria reservoir. Water released after operations at Victoria power station flows to Randenigala
reservoir, which is the largest reservoir in Mahaweli complex. Water at Randenigala reservoir is
used to operate the two 60 MW machines at Randenigala power station and then released to
Rantambe reservoir. Though it is called a reservoir, it is also a small pond which can be regulated.
Water at Rantambe pond is taken to operate the two machines at Rantambe power station, which
are of 25 MW capacity each. The discharged water from Rantambe power station is sent to Minipe
anicut. This water is then distributed to right and left banks of Minipe canals to use for downstream
irrigation and other purposes.
The primary objective of the Multi Purpose Mahaweli system is to provide water for irrigation and
other uses. Power generation is the secondary purpose. Ceylon Electricity Board and Water
Management Secretariat of Mahaweli Authority of Sri Lanka jointly decides the water utilisation of
these reservoirs, in a manner which both parties benefit, ultimately giving the maximum benefit to
the country.
The total Installed capacity of Mahaweli Complex is 816 MW operated for hydropower generation
and arising from irrigation releases for which the entire project was conceived and implemented.
Figure 1.4.3 Mahaweli Complex
c) The Samanala Complex
The Samanala Complex comprises of the Samanalawewa Power station of 120 MW, Kukule Ganga Hydro
power plant of 74 MW and two other irrigation related power plants of 6 MW at Udawalawe and 11 MW
at Inginiyagala. 3 MW pilot wind power plant at Hambantota is also grouped under Samanala Complex
making a total of 214 MW of installed capacity.
Table 1.4.9 Storage Capacities and Generation of Major Hydro Power Stations

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
ii) Supply from Thermal Power Plants
There are seven oil-fired thermal power plants and one Coal Power plant that operate under the CEB.
Seven Independent Power Producers (IPPs) operate in private capacity, supplying power to the national
grid. Table 1.4.10 summarises thermal power generation in 2013.
Table 1.4.10 Installed Capacities and Generation of Thermal Power Plants

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
In the year 2013 the oil-fired CEB power plants generated 1,326.4 GWh, while the coal-fired power plant
generated 1,469.4 GWh. The IPPs generated 2,023.9 GWh in total. A new oil-fired power plant (Uthuru
Janani) of 24 MW was commissioned by the CEB in Jaffna in 2013, commenced generation in early 2013.
Seven IPPs remained operational by end 2013. IPPs operate by entering into long term agreements with
CEB. These contracts are individually executed under different terms and conditions. In the year 2014,
these contributions changed significantly to 1,696 GWh from CEB owned oil fired power plants while
CEB owned Coal Power plant after its commissioning in 2014 generated 3,202 GWh. IPP generation in
2014 was 2,610 GWh. The main reason for this shift is the availability of the Coal power plant generation
at a very cheap cost while the generation of hydro from the previous year was significantly low.
iii) Small Power Producers
New Renewable Energy power plants are operated by private sector investors and the installed
capacityis limited to 10 MW since the plants are non dispatchable. The first Small Power Producing Plant
(Dick Oya) was commissioned in 1996, turning a new leaf in the New Renewable Energy industry. The
number of small power producers has increased rapidly. Attractive tariffs are offered through the costreflective, technology-specific tariff scheme, a policy intervention of the Ministry of Power and Energy
through the Working Group on Renewable Energy, and the dedicated financing facilities provided by a
funding programme, also contributed to the development of the industry. At present the number and
variety of SPPs have increased many folds, and is scattered islandwide. Table 1.4.11 summarises the
installed capacities and generation of SPPs contributing to the NRE industry. In the year 2013 total
renewable based Small Power Producers had an installed capacity of 356MW from 148 Plants which
rose to 437MW in 2014 from 168 plants yielding 1,176 GWh in 2013 and 1,215 GWH in 2014 indicating a
percentage of around 10% of gross generation.
Table 1.4.11 Details of grid connected Small Power Producers
Year
Source
Small Hydro
Wind
Other
iv)
Number
131
10
7
2013
MW
356
78
14
GWh
916
232
28
Number
144
15
9
2014
MW
437
128
21
GWh
902
270
43
Net-metered Projects
Net-metering is a billing system that allows electric customers to sell any excess electricity generated by
their distributed generation (DG) systems. Some common examples include rooftop solar panels, energy
storage devices, fuel cells, micro-turbines, small wind, and combined heat and power systems.
Customers with these types of generation systems connect to the local electric grid and use the grid
both to buy power when the DG systems are not producing sufficiently, and to sell power when excess is
generated. While many different distributed generation sources may be eligible for net metering credits,
solar rooftop installations are by far the most common type of distributed generation promoted with
net metering.
The purchase of electricity from the Small Power Producers (SPP) operational since 1996, allows a
developer to finance and build a renewable-energy based power plant up to 10 MW, and sell its output
to the grid at a standardized price. In addition to the above programme, the Government made a policy
decision in 2008 to allow any electricity customer who generates electricity using a renewable energy
source to connect his facility to the distribution network. The customer shall be billed only for the net
amount of energy purchased from the Distribution Licensee. CEB Distribution Licensees and Lanka
Electricity Company (Pvt.) Limited have implemented the net-metering programmes, with effect from
June 1, 2010. Both electricity distributors, that is, the Ceylon Electricity Board (CEB) and the Lanka
Electricity Company Pvt. Ltd. (LECO), offer net metering to their customers. Both regulations are nearly
the same, with the only difference in fees for net-metering. Net-metering involves a ten year contract, a
generation facility with a limit of 10 MW or the contract demand of the premises and any renewable
resource for power generation. The surplus will be credited to the customer but no payment will be
made for the surplus nor can the customer sell it to another customer. Further to these developments, a
funding programme under the Sustainable Power Sector Support Project of the ADB engaged two
financing institutions to finance rehabilitation of old micro hydro schemes in the plantation factories.
These facilities which were operating in the off-grid mode will be grid connected under the net-metering
scheme in few years time.
v)
CEB Wind Power
In 1999, CEB commissioned the first grid connected wind power plant, primarily as a pilot project. The
pilot wind plant is located in a 17 ha land close to Hambantota town. Table 1.4.12 gives the capacity and
generation of the wind power plant.
Table 1.4.12 Installed Capacity and Generation of CEB Wind Power Plant

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
vi)
Gross Generation of Grid Connected Power Plants
The total generation from major hydro plants, thermal plants, new renewable energy plants and net
metered projects in 2013 was 12,005.5 GWh. Compared with the gross generation of 2012, which was
11,878.8 GWh, the generation in 2013 marks an increment of 1.1%. In early stages, the energy mix
included only major hydro plants and oil-fired thermal plants. The generation mix started diversifying
from 1996. At present however, the thermal share is dominant and it would continue to do so with the
advent of the scheduled commissioning of coal power plants. Table 1.4.13 Gross Generation of
Grid Connected Power Plants

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Figure 1.4.4 Gross Generation to CEB Grid

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
The bulk of electricity generation in Sri Lanka is from grid-connected power plants. Table 1.4.14 gives the
summary of electricity generation from grid-based and off-grid, conventional and non-conventional
sources.
Table 1.4.14 Total Gross Generation in Sri Lanka

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
1.4.3 Energy Conversion
As far as supply from secondary energy sources is concerned, conversion of primary energy in the form
of hydro potential, coal or petroleum to electricity is the most prominent. However, the conversion of
energy in petroleum fuels such as furnace oil or diesel, fuel wood and other biomass resources to steam
used as an energy source in most industries for their thermal application is also another important
conversion taking place in a multitude of industries. All petroleum products used in the transport sector
is also considered as secondary energy. Hence in this case, all primary energies are either converted to
electricity, or steam and other thermal applications where electricity and oil are considered as
secondary energy.
1.4.4 Gross Energy Demand in Sri Lanka
Energy demand arises owing to energy needs of households, industries, commercial buildings, etc.
According to the needs of the user, the supply of energy has to take different forms. For example, the
energy demand for cooking is in the form of biomass in rural areas, while it is in the form of either LP gas
or electricity in urban areas. Therefore, not only the quantity of energy, even the quality and the form it
is delivered, is determined by the demand. Supply of energy discussed up to now is a direct
consequence of the demand for energy, which is analysed in detail in this chapter. Energy is a vital
building block for economic growth. This chapter analyses the energy demand from electricity,
petroleum and biomass.
a) The Electricity System Demand
Electricity demand has two aspects. The first being the energy demand where the cumulative electrical
energy requirement is met by the supply system. The peak demand is the other criterion to be fulfilled
in meeting the national electricity demand. The generating system needs to be able to meet the peak
demand of the national grid. Since the national demand profile has an evening peak, the capability of
the supply system in meeting the demand during the evenings (i.e. peak period) is important. Figure 6.1
shows the hourly demand profile of 8 April, 2013, the day the system recorded the annual peak.
Figure 1.4.5 Electricity System Demand Profile on April 08, 2013

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
System load factors in the range 55%-65% are typical of a customer mix dominated by households with a
high demand for electricity used for lighting in the evening. The peak demand in 2013 was 2,164.2 MW.
The system reserve margin declined by 4.9% in 2013. Figure 6.2 depicts the development of the system
load factor, reserve margin and peak demand from 1977 to present . Table 1.4.15 shows the
development of the system peak demand, Total Gross generation system load factor and other salient
data over the years. The system load factor and the reserve margin increase indicate a healthy growth
and stability in the electricity sector.
Table 1.4.15 The Growth in System Capacity and Demand

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Figure 1.4.6 Development of System Load Factor, Reserve Margin and Peak Demand

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
b) Petroleum Demand
Demand for Different Petroleum Products
The demand for different petroleum products vary primarily on their potential usage. For instance, auto
diesel is widely used for transportation and power generation; in contrast to kerosene, which is used
only for rural household energy needs, some industrial applications, agriculture and fisheries. Therefore,
the demand for auto diesel is substantially higher than for kerosene. The refinery production process is
adjusted to produce more of the high demand products while some products are directly imported to
bridge the gap between refinery output and the demand. The demand for petroleum products
decreased in 2013 compared with 2012, owing to the reduced consumption in power generation. Table
1.4.16 summarises the demand for different petroleum products.
Table 1.4.16 Demand for Different Petroleum Products

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
c) Demand for Coal
Coal is an energy resource used in industries, rail transport and power generation. Until the first coal
power plant commissioned in 2011, coal was not a widely traded commodity in Sri Lanka (Table 1.4.17).
Table 1.4 17 Demand for Coal

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
d) Demand for Biomass
As the most significant primary energy supply source in the country, biomass has a widespread demand
for both commercial and non-commercial applications. However, the informal nature of supply, mainly
through users’ own supply chains, has prevented accurate and comprehensive usage data being
compiled for biomass. Therefore, estimation methods are used to develop reasonable information
based on available data. Mid-year population data and LPG consumption are used to estimate
household firewood consumption. Meanwhile, industrial biomass consumption is estimated based on
the industrial production data and surveys. Most of the information on biomass presented is based on
estimates and sample surveys. Table 1.4.18 summarises the total usage of biomass from different
sources
Bagasse is the waste form of sugar cane, which is used in sugar factories for combined heat and power
generation. By 2013, the bagasse production was 191 kt, generated from the Pelawatta and Sevanagala
sugar factories. Charcoal is produced mainly from coconut shell and wood. A major portion of the
production of coconut shell charcoal is exported as a non-energy product
Table 1.4.18 Demand for Biomass

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
1.4.5 Sectorial Energy Demand
a) Electricity Demand by Different End Use Categories
Based on the usage type, electricity consumers are separated into the following categories
†† Domestic
†† Religious purpose
†† Industrial
†† Commercial
†† Street Lighting
Amounts of electricity used by different customer categories are given in Table 1.4.19 which also
includes off-grid electricity generation using conventional and non-conventional sources. Although the
electrical energy demand of different end users is established using electricity sales data, individual
power demand of different categories cannot be established due to the lack of a monitoring system or
regular load research. Nevertheless, by analysing the typical load profiles of different user categories, it
is visible that the domestic category is most influential in the morning and evening peaks and the
consequent low load factor of the system.
Table 1.4.19 Electricity Sales by End Use Category

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Figure 1.4.7 Electricity Sales by Consumer Category

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
b) Petroleum Demand in Different Sectors
Petroleum has a wide range of applications as a convenient energy source. Transport, power generation,
industrial thermal applications, domestic lighting and cooking are the most common uses of petroleum
in Sri Lanka. In addition, due to the strategically important geographic location of Sri Lanka in terms of
maritime and aviation movements, foreign bunkering and aviation fuel sales also create a demand for
petroleum in the country.
i)Transport Sector
Transport is the most important sector as far as petroleum is concerned. Almost all the vehicles in Sri
Lanka are powered by either diesel or gasoline. Road transport is 100% fuelled by petroleum, while rail
transport is fuelled by diesel. The Internal Combustion (IC) engines in all these vehicles intrinsically
introduce considerable energy wastage in terms of conversion efficiency from petroleum energy to
motive power. Use of electricity to at least energize the train transportation can be an efficient and
economical alternative to burning petroleum fuels in the transport sector. Table 1.4.20 summarises the
demand for fuels in the transport sector. Table 1.4.21 summarises the auto diesel demand in road
transport and rail transport. Only a marginal share of 2.2% of the total transport diesel demand is
consumed by rail transport. The demand for transport fuels has increased in 2013, compared with 2012.
The demand for super diesel is marginal in the transport fuel mix.
Table 1.4.20 The demand for fuels in the transport sector.
Figure 1.4.8 Transport Demand by Fuel Type

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Table 1.4.21 Auto Diesel Demand in Road and Rail Transport

ii)
Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Petroleum Usage in Other Sectors
Transport and the power sector are the largest petroleum consuming sectors. Domestic sector
petroleum consumption is limited to kerosene and LPG. However, with the increased use of LPG,
especially in urban households for cooking purposes, the demand for petroleum by the domestic sector
has also become significant. Industrial sector petroleum usage is mostly for thermal applications where
diesel and fuel oil is used to fuel industrial steam boilers. LPG usage is also increasing in industrial
thermal applications where the quality and control of heat generation is important for the industry
operation. LPG fired kilns in the ceramic industry is one such example. The commercial sector including
the service sector organizations such as hotels also contribute to the national petroleum demand, but to
a lesser degree than the above-mentioned high petroleum consumers. Table 1.4.22 details LPG demand
by sector. The Total LPG demand has increased over the years. The domestic demand for LPG is
increasing substantially. This is often attributed to the improved per capita income levels. Although the
LPG demand is increasing in the household sector, it is decreasing in the industrial and transport sector.
According to the Household Income and Expenditure Survey conducted by the Department of Census
and Statistics, the demand for LPG as a cooking fuel is increasing in every sector.
Table 1.4 22 Demand for LPG by Sector

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
c) Coal Demand in Different Sectors
The total coal demand is given in Table 1.4.23. In the past, the total demand for coal had been in the
transport sector or industries. However since the commissioning of the first coal power plant in 2011
(300 MW), there has been an increased demand for coal in power generation. In 2013, the demand for
coal for power generation alone was 89.0%.
Table 1.4 23 Demand for Coal by Sector

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
d) Biomass Demand in Household, Commercial and Other Sector
Firewood is the main source of cooking fuel in many parts of the country. Table 1.4.24 gives the total
firewood requirement in the household and commercial sector. A marginal decrease in firewood
consumption is reported in 2013, compared with 2012. According to the Household Income and
Expenditure Survey 2012/2013 of the Department of Census and Statistics, the majority of the
households in Sri Lanka still use fuelwood as their cooking fuel, which stands at 77.5%. LP gas is used by
19.0% of households and only 3.5% used Kerosene and other types of fuels. Most urban sector
households used LPG as the main type of cooking fuel (55.5%) and one out of every five rural
households also use LPG as the main cooking fuel in 2012. Fuelwood is the most common cooking fuel in
both the rural and estate sectors. Its usage in the estate sector is 95.3%. However, the usage of firewood
in each sector is declining as indicated in Table 6.19 and Figure 6.14. Data was obtained from the
Household Income and Expenditure Surveys carried out by the Department of Census and Statistics
Table 1.4.24 Demand for Firewood in Household, Commercial and Other Sector

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
1.4.6 Total Energy Demand in Common Energy Units
To summarise the demand for different energy sources presented above, demand data is presented in a
comparable unit of energy (tonnes of oil equivalent [toe] and Peta Joules [PJ]) in this section.
Table1.4.25 summarises the total energy demand by source.
Table1.4.25 Total Energy Demand by Energy Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
The petroleum demand figures presented are only in terms of final energy use, this does not include the
fuels consumed in electricity generation. The share of biomass consumption in the total energy demand
is 53.9% in 2013. The demand for biomass has marginally increased, compared with 2012, while the
demand for petroleum and electricity has marginally decreased. As can be expected from any growing
economy, the share of biomass in the energy demand portfolio is on a decreasing trend, while the share
of petroleum and electricity is on an increasing trend. With the economic development of the country,
these trends will further accentuate in the medium term.
Figure 1.4.9 Total Energy Demand by Energy Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Figure 1.4.10 Evolution of Energy Demand by Energy Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
a) Total Industrial Energy Demand
Table 1.4.26 Total Energy Demand of Industries by Energy Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Figure 1.4.11 Total Energy Demand of Industries by Energy Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
b) Total Transport Energy Demand
Table 1.4.27 Total Transport Energy Demand by Energy Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Both, road and rail transport were fuelled by petroleum in 2013. The number of electric vehicles and
plug-in hybrid vehicles are growing and any accurate assessment of electricity consumed by the
transport sector cannot be made due to non-availability of information.
c) Total Energy Demand in Household, Commercial and Other Sectors
Table 1.4.28 Total Energy Demand in Household, Commercial and Other Sectors by Energy
Source

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
Biomass accounts for approximately 77.2% of the total household, commercial and other energy
demand. The share of biomass and electricity has shown a marginal increase, while the share of
petroleum shows a marginal decrease. The petroleum decrease could be attributed to the substantial
price increase experienced in 2013.
Figure 1.4.12 Total Energy Demand of Household, Commercial and Other Sector by Energy
Source
Table 1.4.29 Total Energy Demand by Sector

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority
d) Total Energy Demand by all Sectors
In 2013, households, commercial and other sectors accounted for the largest share of energy being
45.8%. The transport and industry sector accounted for 28.8% and 25.4% respectively.
Figure 1.4.13 Total Energy Demand by Sectors

Source: Sri Lanka Energy Balance 2013. Sustainable Energy Authority