Boston, MA -- (SBWIRE) -- 07/26/2013 -- Sri Lanka is a prime candidate for gas-fired power generation and broader natural gas usage, but has no domestic resources, pipeline links, LNG facilities or distribution system. Tentative plans for gas imports and generation have yet to be developed into firm projects. Oil will remain a significant part of the Sri Lankan power generation mix, thanks largely to a lack of other options. Its connection to the Indian power transmission system is to be strengthened, allowing for greater supply and, later, export flexibility.

The estimated potential for large-scale hydro-power generation in the country is in the region of 2GW. Over two-thirds of this amount has already been harnessed and only a few new plants are planned. Power generation by hydro plants has in recent months been reduced by drought, but government policy is still encouraging private sector development of mini hydro facilities.

View Full Report Details and Table of Contents

Key trends and recent developments in the Sri Lanka electricity market include:

- During the period 2013-2022, Sri Lanka's overall power generation is expected to increase by an annual average of 6.58%, reaching 24.41 terawatt hours (TWh). Driving this growth is an annual 7.63% gain in oil-fired generation and a 4.01% rise in hydropower, accompanied by the build-up of output from nonhydro renewables.
- The power cuts which hit the country in August 2012 (the first in more than a decade), after a technical failure in the Chinese-built Lakvijaya coal power, highlighted the lack of excess generation capacity needed to avert a power crunch. We believe that the construction of new generation capacity in Sri Lanka has not kept pace with the growth in electricity demand. There are, therefore, significant opportunities for power plant projects due to Sri Lanka's need to boost and diversify its generation capacity. Looking ahead, we believe there is further scope for an increase in coal-based capacity and even natural-gas capacity once gas prices fall to sustainable levels.
- The incentives for renewable energy outlined by the 2013 Sri Lankan budget represent a positive development for the country's energy sector. The tax exemption on imported renewable energy equipment could be particularly important as it would substantially lower the costs of developing renewable assets and dramatically improve returns for investors.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Energy research reports at Fast Market Research

You may also be interested in these related reports:

- Sri Lanka Power Market Outlook to 2030 - Market Trends, Regulations and Competitive Landscape
- Thermal Power in Sri Lanka, Market Outlook to 2020, 2012 Update - Capacity, Generation, Regulations, Power Plants, Companies
- Ceylon Electricity Board - Power Plants and SWOT Analysis, 2012 Update
- Hydro Power Free Lanka Limited (HPFL.N0000) - Alternative Energy - Deals and Alliances Profile
- Power Market in SAARC Countries to 2020 - FDI Driven by Private Sector Participation is Key to Future Growth
- Ceylon Electricity Board - Alternative Energy - Deals and Alliances Profile
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- Japan International Cooperation Agency - Power - Deals and Alliances Profile
- Asian Development Bank - Alternative Energy - Deals and Alliances Profile
- Global Power Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Power Industry