Small Power Producers using NCRE Sources Sample Clauses

Small Power Producers using NCRE Sources. Grid-connected electricity generating facilities with an installed capacity of less than 10 MW, and owned/operated by private companies, are considered by CEB as Small Producers (SPPs). These SPPs are embedded power plants, because they are connected at medium voltage levels (mostly at 33kV) in the CEB grid, unlike the larger power plants, which are connected at higher voltage levels of 132 kV or 220 kV. Furthermore, embedded power plants in Sri Lanka, being small and dependent on the availability of renewable energy, which is sometimes unpredictable, are not dispatched. The Small Power Purchase Agreement (SPPA) is a standardised, non-negotiable 15-year contract. This contract is used by CEB to purchase energy from embedded power plants. The SPPA is offered only to embedded power plants for which the primary source is a renewable source, or to power plants using waste heat or using combined heat and power technology. The contract specifies the conditions, current prices and pricing policy on which electricity will be purchased by CEB. The first SPPA was signed in 1997. Investor confidence in Sri Lanka is so far seen mainly in the development of small hydro. While investors have shown some interest in developing biomass and wind power plants, there has been limited success yet. All SPPs are private-sector investments, with CEB providing a supporting role by way of providing a letter of intent in the first instance. Once the necessary approvals from other agencies are secured by the developer, CEB enters into an SPPA. Any medium voltage (33 kV) transmission line upgrades or new lines, require to be financed by the private developer. Following this procedure, CEB Presently has 63 SPPs in operation, 59 of which are small hydroelectric power plants. The total capacity of SPPs in operation is 114 MW, of which 112 MW are small hydroelectric power plants. In year 2006, 3.7% of total electricity requirement of Sri Lanka were met with SPPs. Development of a SPP is conducted in the following procedure: Application to CEB, evaluation by CEB, issue of the Letter of Intent (LoI), securing of other approvals, execution of the SPPA, financing, construction and commissioning. Further to the 63 SPPs already in operation, CEB has signed 37 SPPAs (35 of which are small hydro), which are in various stages of development. In addition to all the above, a further 96 letters of intent (of which 69 are for small hydro) have been issued by CEB. As it is evident from the above, inves...
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