No decision against competitive procurement of diesel for electricity generation: CEB

Colombo, October 18 (Daily Mirror)- Clarifying that the Ceylon Electricity Board (CEB) has never purchased diesel for electricity generation, through competitive bidding, including during the tenure of the previous management, the CEB said the new management has not taken any decision against competitive procurement of diesel for electricity generation.

In a statement, Additional General Manager (Corporate Strategy) Eng. W.P.M. Fernando said the CEB purchases three types of petroleum fuels to generate electricity including Heavy Fuel Oil (HFO), Naphtha and Diesel adding that Diesel is the only fuel available for CEB to purchase through competitive bidding as there are multiple distributors, some of whom have commenced their businesses recently.

Clarifying on the fuel supply to the CEB Thermal Power Plants, the CEB said Heavy Fuel Oil and Naphtha are both byproducts of the CPC refinery and that the CEB purchases these from the CPC at a mutually agreed price, as there is no other feasible supplier. 

"The CEB does not consider diesel as an economically viable electricity generation option, additionally in the light of Sri Lanka's emission targets towards transition to cleaner energy. However, a minimal use of the diesel power plants is required to cater to peak demand, considering the current generation mix and during overhauls/rectification works of other larger power plants. Any use of diesel for electricity generation will be minimal and of short duration. In 2024 up to 30th September, only 1.1% of electricity was generated using diesel," the statement added.

The Additional General Manager said the CEB would ensure competitive procedures in all its business operations.