ECONOMYNEXT – Sri Lanka’s state-run Ceylon Electricity Board has floated a request for information in efforts to build synchronous condensers into the grid, as the utility moves to absorb more renewable energy.
In August the CEB sought information on a 75 Mega Volt Ampere (MVA) synchronous condenser system it plans to connect to a key substation in the grid.
“Synchronous condenser is a new addition to the Ceylon Electricity Board, so the know-how has not developed,” Additional General Manager Transmission (No-wired) Susanthe Fernando said.
“So we are calling for information from prospective bidders. We will make tender documents after we get information. We also plan to get consultancy service also for synchronous condensers.”
The CEB initially plans another synchronous condenser in the Padukka grid substations with near term plans for 145 MVA of synchronous condensers, he said.
A 50 to 70 MVA synchronous condenser could cost 15 to 20 million dollars according to a submission made to Australian authorities several years ago.
Synchronous condensers are provided ‘reactive power’ (and inertia) to maintain grid stability and avoid blackouts as renewable power share of a grid goes up.
Technologies like solar, and also mini-hydro plants which use induction generators do not generate reactive power, and the grid operators have to develop their own at additional cost.
The cash-strapped utility’s engineers in the past have run gas turbines (with the turbine decoupled from the generator), to generate reactive power as part of stop-gap solutions when some non-conventional renewable power share went up.
The CEB’s reluctance to absorb a large share of renewable which cannot be dispatched (shut on and off by the system control unlike large hydros) or de-stabilizes the grid in other ways (lack of reactive power or inertia) has been marketed as the utility being ‘anti-renewable’ according to some analysts.
The CEB has to make bigger profits (gross margins) with higher tariffs, to finance the infrastructure necessary to absorb the renewable energy. Countries like Germany charge separate grid fees to cover the cost of an advanced grid which can absorb renewables.
The CEB however has not been given tariff increases to cover its energy costs especially after the end of a civil war, when the rupee depreciation picked up sharply from rate cuts made to push up the cost of living (flexible inflation targeting).
The CEB has also called bids to build the first 160MW/640MWh battery system as a build operate own system on a competitive basis.
Separately the CEB is offering a tariff for solar that is around thermal levels 45.80 rupees a unit on non-competitive basis, that will store energy and supply at the night peak indicating the cost of dispatched solar power.
Wind is available in the night and day, though it is also seasonal and can be variable. (Colombo/Aug17/2025)
