CEB acquires 163 MW power plant from Sojitz Kelanitissa to increase electricity generation capacity

In a move aimed at increasing the capacity of electricity generated, the Ceylon Electricity Board (CEB) has successfully acquired the 163 MW Combined Cycle Power Plant from Sojitz Kelanitissa (Pvt) Limited. The acquisition process, which began in late 2022, was completed on March 28, 2023, in accordance with the terms and conditions of the Power Purchase Agreement (PPA).

The power plant, located in the Colombo Kelanitissa Power Plant complex, was operated by Sojitz Kelanitissa (Pvt) Limited for over 19 years under a 20-year contract period signed in June 2000 with the CEB as an Independent Power Producer (IPP) on BOOT basis.

Following some minor modifications, the CEB-owned facility will be compatible with liquefied natural gas (LNG), thereby enabling the reduction of the current cost of generation when conversion takes place.

According to a statement issued by the CEB, the negotiations for the acquisition were challenging, but the board managed to overcome the obstacles and difficulties with the help of various government entities. The CEB also expressed its appreciation for Sojitz Kelanitissa (Pvt) Limited for its operation of the power plant and cordial cooperation during the negotiation and transfer process.

The acquisition of the power plant is expected to contribute significantly to meeting the future power requirements of the country, and it represents a significant milestone for the CEB as it seeks to enhance the country’s energy security and improve the reliability of the power supply.