Next year a high tension 132kVA transmission standard line from Kilonocchi to Chunnakham is to be commissioned along with a grid substation in Chunnakham north of Jaffna town.
Jaffna has its own grid supplied by thermal generators in Chunnakham.
CEB is also building a 3.5 billion rupee furnace oil plant in Chunnakham with financing from Lanka Electric Company, a CEB subsidiary, to improve generation capacity in Jaffna, Ranawaka said.
The CEB is expected to make an annual loss of 2.
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8 billion rupees supplying power to 121,000 customers in Jaffna using thermal generators, he said.
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Minister Ranawaka said the new plant which is to completed by the end of the year will reduce generation costs as the utility was now paying about 38 rupees to Agrecco, a private power supplier.
The CEB is to commission a 132kVA high tension transmission line from Vavuniya to former Tamil Tiger separatist headquarters in Kilinocchi on September 25. A 30-year war with separatists ended in 2009.