Sri Lanka expert says solar energy too costly without subsidy

Solar energy is still too expensive to be used widely without government subsidies, a Sri Lankan expert has told the island’s energy-intensive industries which are grappling with the highest electricity costs in Asia.
Tilak Siyambalapitiya, managing director, Resource Management Associate, said solar energy cost 60 rupees per kilowatt hour whereas now industrialists are not paying over 13 rupees per kilowatt hour for power from the state utility.

Power now is generated by hydro-electric and diesel-fired thermal plants but the island also plans to build coal-fired plants to cope with growing energy requirements and prevent blackouts.
Another problem with solar energy technology was utilisation with the maximum solar output being available only for 4.5 hours a day or one-sixth of the time.

“The level of utilisation is only 16 percent,” Siyambalapitiya said. “While the investment is three times that of conventional technology, it is used only 16 percent of the time.”

This is compared with the 80-85 percent usage of conventional technology.

“Despite sunlight being free of charge, until the capital costs come down there’s no way it can compete with large power plants,” Siyambalapitiya said.

Lanka Business