Energy security concerns of coal power plants in the Sri Lankan electricity system

Abstract

Concerns on worldwide energy security have increased due to many reasons including the price hike of oil followed by coal. Sri Lanka's apprehension for energy security was minimal in the past due to the major share of hydropower in the electricity generation. As Ceylon Electricity Board (CEB), electricity utility in Sri Lanka anticipates a coal-dominant electricity sector within a decade, Sri Lanka is getting exposed to the insecure energy market. This paper primarily focuses on the diversity measures of the energy security. First part of the findings indicates a decline in the diversity in the coming years by using the Shannon-Wiener Index (SWI) and Herfindhal-Hirschman Index (HHI). Part two develops a portfolio index for the coal supply for Sri Lankan electricity sector. Major regional coal exporters were taken into consideration as the potential suppliers to Sri Lanka. Three cases were developed and based on the results the optimal solution was proposed. The estimates focus on diversity of the suppliers of coal and the correlation of the export volumes for the relevant pairs of the exporting countries.