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The demand
for electricity in Sri Lanka has been growing at an annual rate of 7-8%
and this trend is expected to continue for the foreseeable future. To meet
this growth in demand about 150MW of new generating capacity needs to be
added each year. At present some 60% of the annual demand is met by various
hydropower plants. This is possible due to the large number of streams and
rivers in the Southern Highlands which are fed by Sri Lanka’s two monsoon
seasons. The UKHP is likely to be the last large scale hydropower scheme
to be developed in Sri Lanka except for few other sites with potential for
medium scale plants, and mini-hydropower plants. In the future additional
power supply is likely to be provided from conventional coal fired power
plants. At present only 68% of the population
have access to power from the national grid. Planned electrification schemes
aim to increase this to 80% by 2005. The distribution of power consumption
in 2002 was 39.5% for industrial use, 19.4% for commercial use and 40.9%
for domestic and religious use.
The growth in electricity demand has closely
followed the growth in the economy in recent years, emphasizing the need
for a reliable and uninterrupted supply of electricity provided at a reasonable
price if the current trend of economic growth is to continue. Forecasts
prepared by CEB in 2003 shows that an additional 3228MW of generating
capacity would be required over the next 15 years. The 150MW provided
by the UKHP would therefore be an essential addition to the country’s
generating capacity.
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