An Investigative Report-
Sri Lanka’s primary energy heartbeat, the Lakvijaya (Norochcholai) Coal Power Station, is facing a brewing crisis that threatens national grid stability and the public purse. An investigative look into the recent $130 million coal procurement deal reveals a troubling pattern of technical failure, questionable supplier credentials, and a massive looming financial deficit.
1. The Supplier: An Inexperienced Entrant
The Standing High-Level Procurement Committee recently awarded a massive contract for 1.5 million metric tons of coal to Trident Chemphar Limited, an India-based firm. Despite the strategic importance of Lakvijaya—which provides nearly 50% of Sri Lanka’s electricity—the contract was handed to a company with limited prior exposure to large-scale thermal energy logistics. This “inexperience factor” has now moved from a theoretical risk to a practical disaster.
2. The Quality Gap: “Sub-standard” Energy
While the coal was meant to be verified at the Load Port by Mitrask Testing and Laboratories, the reality on the ground has been different.
- The Deficit: Initial testing during generation shows the coal failed to hit the mandatory 300 MW output.
- The Impact: Operators were forced to “deload” units, resulting in a 25 MW loss per unit.
- The Science: Internal laboratory tests confirmed a significantly lower Gross Calorific Value (GCV). In simple terms, the coal is “weak”—it burns but does not produce the intense heat required to spin the turbines at full capacity.
3. The “Stockyard Time Bomb”
The crisis is compounded by storage issues. Technical data suggests that coal stored for over six months at the Lakvijaya yard undergoes “volatile matter degradation.”
- Projected Losses: Historical data indicates that using such deteriorated, low-quality coal can lead to a staggering 150 MW cumulative loss across all three units.
- Maintenance Nightmare: Beyond power loss, this coal increases ash fouling and “tube-wear” risks, potentially leading to expensive, long-term boiler damages.
4. The Economic Toll: LKR 72 Million Daily
The financial implications are catastrophic. With a unit energy value estimated at LKR 20.00 per kWh, the failure to generate the missing 150 MW translates to a loss of approximately LKR 72,000,000 every single day. For a country recovering from an economic crisis, this is a drain on national resources that Sri Lanka simply cannot afford.
5. Accountability and Governance
The Lakvijaya episode raises urgent questions:
- How did a relatively inexperienced supplier pass the high-level scrutiny for a $130 million tender?
- Why were the quality deviations at the load port not treated as a “red flag” before discharge?
Stakeholders are now calling for a transparent, independent audit of the procurement process to safeguard the continuity of the national power supply and prevent a total systemic failure.