China-built Norochcholai Plant continues to suffer breakdowns causing losses

Norochcholai Coal Power Plant, Sri Lanka's first-ever coal powered electricity generating unit that was built from Chinese funds, has suffered frequent breakdowns causing heavy financial losses to the Ceylon Electricity Board (CEB) over the years.

The construction of the Chinese funded USD 1.35 billion power plant which is also known as Lakvijaya Coal Power Plant was carried out by the China Machinery Engineering Corporation (CMEC) and was completed in three phases by 2014.

The first phase of 300 MW was commissioned in 2011, and the second and third phase in 2014. The total power generation capacity of this plant is 900 Megawatt with an estimated cost of the project being USD 1.35 billion.

Since the plant was commissioned in December 2011,  it experienced more than 20 breakdowns. As a result, the CEB incurred significant financial loss.

Former Power and Renewable Energy Deputy Minister Ajith P. Perera once alleged that the power plant was built with substandard and outdated material and is well below international standards.

At a time when Sri Lanka was going through a severe economic crisis and frequent power cuts, Lakvijaya Coal Power Plant went through several breakdowns placing a heavy strain on the economy and compelling the CEB to extend one-hour daily power cuts.  The breakdown in August, 2022 resulted in three-hour extended power cuts.

One of the latest shutdowns was announced on June 17, 2022 when a generator at the Coal Power Plant was shut down for essential maintenance.

According to the CEB, Unit 2 was out of operation for at least 75 days; consequently, the electricity supplied by the coal power plant to the national grid dropped from 45 percent to 30 percent.

Due to the latest shutdown, the national grid lost 270MW and thermal power plants had to increase generation to meet the demand.

Unit 3 of the Norochcholai power plant, which broke down at the end of last year, was only fixed and reconnected back to the National grid by December.

Soon after the power plant was operationalised in 2011, the power station ceased operations due to a leak in one of the thousands of tubes carrying water between the boiler on July 22, 2012.

The country was put into controlled regional power outages to cope with the missing generation. On August 8, 2012 a tripping of the powerline from Lakvijaya caused the power station to cease operations.

In August 2020, a ‘technical fault’ at the plant caused a nationwide blackout and power rationing. Despite a previous expert committee having recommended it as far back as February 2017, the plant still didn't have an auxiliary (external) power supply mechanism to keep the units alive in the event of a grid failure. Having one can facilitate a controlled shutdown of plants so they can be restarted without waiting for three to four days.

Meanwhile, the emissions from the Lakvijaya power plant have produced significant negative impacts on the environment as well as the community.

A June 2018 report by the ‘Coalition against Coal’ found the Lakvijaya plant lacks an environmental management license, a waste management license, approval for a recent expansion of a coal yard, or authorization for drilling of water bores. It also found that sensors for environmental monitoring had not been properly calibrated, that there had been repeated breakdowns of the flue gas desulphurization units, and the plant had no mercury control system.

Resources such as coal, ground water, marine resources and local biodiversity are being depleted as a result of the functioning of the plant while Thermal Emissions, Heavy Metal Pollutants in Emissions, and Water Pollution continue to make an impact on the community.

It has been reported that several children in the areas surrounding the Norochcholai power plant have contracted skin diseases. Patches that look like rashes have appeared on the skin of several children. Not even newborns are safe from this, who are born with these patches. Villagers tell about incidents of expectant mothers who have been admitted to hospital multiple 22 times due to complications from fly ash pollution. The residents have complained of unbearable skin irritation which becomes worse on hot days.

Meanwhile, maintaining the power plant at its current status has become another nightmare due to difficulties in securing funds to supply coal. Lanka Coal Company Chairman Shehan Sumanasekera has requested funds from Power and Energy Minister Wijesekera to purchase coal stocks expressing concerns about the continued operations of the Norochcholai power station if the necessary funding for coal procurement is not received.

The Lanka Coal Company Chairman has requested $ 12.32 million or around Rs. 4.56 billion from the Minister to purchase coal.

“A total of Rs. 15.3 billion immediately for the procurement of coal for the upcoming week. We hope the Central Bank will provide the required amount in dollars,” he told journalists in early February, 2023 explaining the dire financial situation to secure sufficient stocks to operate the Norochcholai power plant.