Vallibel Power Erathne at 9.9 MW is the largest mini-hydro plant to date, situated at a high rainfall location Erathne, and is considered to be highly capital efficient, with costs per megawatt of Rs75 million, over the general standard of Rs90 million.
It also has a guaranteed floor tariff of Rs5.14 a unit or 90 percent of the rate effective when signing the Standardized Power Purchase Agreement (SPPA) with the CEB.
Private power developers are paid on the basis of avoided cost – or how much the CEB saves by not using costly diesels, calculated for wet and dry seasons.
Heavy Start Up Costs
But capital costs of mini-hydro projects are rising, making new investments less attractive, top officials say, with CEB also restricting new projects, saying its finely stretched d