CEB – INDEPENDENT POWER PRODUCERS – ELECTRICITY
PURCHASE
(No. B/610) Mr E. Guimbeau (First Member for Curepipe & Midlands)
asked the Deputy Prime Minister, Minister of Renewable Energy and Public
Utilities whether, in regard to the proposed purchase of electricity by the Central
Electricity Board from the Independent Power Producers, namely, Gamma
Coventa and CT Power he will, for the benefit of the House, obtain from the
Board, information as to the price per Kwh in each case as compared to the cost
per Kwh produced by the Board.
The Minister of Public Utilities (Dr. A. Kasenally): Mr Deputy Speaker,
Sir, with your permission, I shall reply to this question.
The power generation park of the CEB comprises different types of
generating units namely fuel oil and kerosene. These units were commissioned at
different periods. Each unit has its own generation cost per kWh. However on
average, at March 2009, the cost per kWh was Rs3.57. The average cost is subject
to fluctuations based on the cost of fuel and exchange rates.
With regard to the proposed purchase of electricity from Gamma Covanta
and CT Power respectively, I am advised by the CEB as follows -
With regard to the Gamma Covanta project, it is expected that the plant will
be commissioned in the third quarter of 2011. The project for the generation of
electricity for a capacity 20 MW was initiated following a Letter of Intent issued
by the Board of Investment on the 05 May 2006. Since then, negotiations are
being carried out with the CEB on a Power Purchase Agreement. In parallel, a
Project Implementation Agreement Committee comprising representatives of the
State Law Office, Ministry of Finance and Economic Empowerment, Ministry of
Local Government, my Ministry and CEB are negotiating the Project
Implementation Agreement. A number of other agreements are also being
negotiated between the promoter and other authorities.
As far as CT Power is concerned; in respect of the CT Power project, an
agreement has been signed between the promoters and the CEB on the 23
December 2008, whereby CEB has agreed to purchase electricity at a price of
Rs3.01 per kWh. This price is based on an exchange rate of Rs32.056 for the US
Dollar, 70 US Dollar per metric ton of coal and a plant load factor of 75%.
I also wish to inform the House that the agreement between CEB and CT
Power is subject to the latter obtaining an EIA licence.
Mr Guimbeau: Mr Deputy Speaker, Sir, I thank the hon. Minister for
giving me the figures for CT Power, but what about the price per Kwh for the
Gamma Coventa?
Dr. Kasenally: For the Gamma Coventa, negotiations are not finished yet.
We are going to come to a clear-cut figure, but it should be above Rs5.
Mr Guimbeau: I heard it is going to be Rs5.31. Is that right, Mr Deputy
Speaker, Sir?
Dr. Kasenally: Mr Deputy Speaker, Sir, this is not final, that is why I
didn’t want to commit to a particular figure.
Ms Deerpalsing: May I ask the hon. Minister, in view of his answer he has
given, whether he can give the comparative price for the other IPPs?
Dr. Kasenally: The other IPPs are slightly higher. I think one is about
Rs4.57 and they have different components, but they are a bit higher. In fact, it is
much higher than CT Power and certainly higher than what the CEB produces. It is
much above Rs3.57.
The Deputy Speaker: Next question, please!

Sitting tuesday 23 June 2009

(No. B/610)

Mr E. Guimbeau (First Member for Curepipe & Midlands) asked the Deputy Prime Minister, Minister of Renewable Energy and Public Utilities whether, in regard to the proposed purchase of electricity by the Central Electricity Board from the Independent Power Producers, namely, Gamma Coventa and CT Power he will, for the benefit of the House, obtain from the Board, information as to the price per Kwh in each case as compared to the cost per Kwh produced by the Board.

The Minister of Public Utilities (Dr. A. Kasenally): Mr Deputy Speaker, Sir, with your permission, I shall reply to this question.

The power generation park of the CEB comprises different types of generating units namely fuel oil and kerosene. These units were commissioned at different periods. Each unit has its own generation cost per kWh. However on average, at March 2009, the cost per kWh was Rs3.57. The average cost is subject to fluctuations based on the cost of fuel and exchange rates.

With regard to the proposed purchase of electricity from Gamma Covanta and CT Power respectively, I am advised by the CEB as follows -

With regard to the Gamma Covanta project, it is expected that the plant will be commissioned in the third quarter of 2011. The project for the generation of electricity for a capacity 20 MW was initiated following a Letter of Intent issued by the Board of Investment on the 05 May 2006. Since then, negotiations are being carried out with the CEB on a Power Purchase Agreement. In parallel, a Project Implementation Agreement Committee comprising representatives of the State Law Office, Ministry of Finance and Economic Empowerment, Ministry of Local Government, my Ministry and CEB are negotiating the Project Implementation Agreement. A number of other agreements are also being negotiated between the promoter and other authorities.

As far as CT Power is concerned; in respect of the CT Power project, an agreement has been signed between the promoters and the CEB on the 23 December 2008, whereby CEB has agreed to purchase electricity at a price of Rs3.01 per kWh. This price is based on an exchange rate of Rs32.056 for the US Dollar, 70 US Dollar per metric ton of coal and a plant load factor of 75%.

I also wish to inform the House that the agreement between CEB and CT Power is subject to the latter obtaining an EIA licence.

Mr Guimbeau: Mr Deputy Speaker, Sir, I thank the hon. Minister for giving me the figures for CT Power, but what about the price per Kwh for the Gamma Coventa?

Dr. Kasenally: For the Gamma Coventa, negotiations are not finished yet. We are going to come to a clear-cut figure, but it should be above Rs5.

Mr Guimbeau: I heard it is going to be Rs5.31. Is that right, Mr Deputy Speaker, Sir?

Dr. Kasenally: Mr Deputy Speaker, Sir, this is not final, that is why I didn’t want to commit to a particular figure.

Ms Deerpalsing: May I ask the hon. Minister, in view of his answer he has given, whether he can give the comparative price for the other IPPs?

Dr. Kasenally: The other IPPs are slightly higher. I think one is about Rs4.57 and they have different components, but they are a bit higher. In fact, it is much higher than CT Power and certainly higher than what the CEB produces. It is much above Rs3.57.

The Deputy Speaker: Next question, please!