Any use of diesel for electricity generation is minimal – CEB

The Ceylon Electricity Board (CEB) stressed that the CEB new management has not taken any decision against competitive procurement of diesel for electricity generation.

CEB’s Corporate Strategy Additional General Manager W.F.M.Fernando in a statement yesterday highlighted that the CEB has never purchased diesel for electricity generation through competitive bidding, including during the tenure of the previous management.

CEB shall ensure competitive procedures in all its business operations, Fernando noted. According to the CEB statement three fuel types are used for electricity generation namely Heavy Fuel Oil (HFO), Naphtha and Diesel. Since HFO and Naphtha are both byproducts of the Ceylon Petroleum Corporation (CPC) refinery, CEB purchases these from CPC at a mutually agreed price, as there is no other feasible supplier.

However, 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.

“However, CEB has never purchased diesel for electricity generation, through competitive bidding, including during the tenure of the previous management. Moreover the new management has not taken any decision against competitive procurement of diesel for electricity generation,” the statement further noted.

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 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 upto September 30, only 1.1 percent of electricity was generated using diesel,the release said.

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