Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
CAPACITY DEVELOPMENT WORKSHOP ON FOSSIL FUEL AND RENEWABLE ENERGY (FFRE) FOR INDIAN OCEAN AND AFRICAN SIDS Organized by United Nations Office for Sustainable Development (UNOSD) and Commission Maurice Ile Durable (MID Commission), Mauritius Clos Saint-Louis, Domaine Les Pailles, Mauritius, 12-16 May 2014 Subsidies for Fossil Fuels in Sri Lanka Thusitha Sugathapala Director General Sri Lanka Sustainable Energy Authority Ministry of Environment & Renewable Energy OVERVIEW Sri Lanka at a Glance Fossil Fuel Sector Taxes / Subsidies of Fossil Fuels 2 SRI LANKA AT A GLANCE Socio-Economic Population 20.2 Million No. of HHs 4.7 Million Per Capita GDP 2,900 US$ GDP Growth rate ~ 6 to 8 % Energy Sector Main Sources of Energy: Biomass, Petroleum, Coal, Large hydro, Other REs (Small hydro, wind, solar) Total Consumption: 8.927 MToE Industry 24 % Transport 28 % Domestic & Commercial 48 % Electricity Sector Total Installed Capacity: 3180 MW Peak Load: 2150 MW Gross Generation: 11,800 GWh HH Electrification: 94 % Installed Capacities by Source Hydro 1,357 MW Thermal 1,638 MW NRE 384 MW Elect.Generation by Source Hydro Thermal New RE 30 % 64 % 6% 3 FOSSIL FUEL SECTOR Primary Energy Supply (kTOE) Primary Energy Supply by Source Coal 12000 New RE New RE 10000 8000 Hydro Large Hydro Coal Petroleum 6000 Oil Biomass 4000 Biomass 2000 0 Year 4 FOSSIL FUEL SECTOR Electricity Sector – Gross Generation Coal New RE Oil Hydro 5 FOSSIL FUEL SECTOR Importation of Fossil Fuels 6 FOSSIL FUEL SECTOR Future Demand Sri Lanka Oil Demand Forecast (000' bpd) Petroleum Oil (000’ bpd) 160 140 120 100 80 60 40 20 0 1995 2000 2005 2010 2015 2020 2025 2030 7 FOSSIL FUEL SECTOR Future Demand for Coal (Grid Electricity) Energy Mix - 2015 Existing Major Hydro 28% Oil 32% Coal 34% Energy Mix - 2020 Oil 6% Coal 62% New Major Hydro 0% NCRE 6% Energy Mix - 2032 Existing Major Hydro 22% New Major Hydro 2% NCRE 8% Oil 1% Existing Major Hydro 12% Coal 79% New Major Hydro 2% NCRE 6% 8 TAXES / SUBSIDIES OF FOSSIL FUELS Government Policies Until recently, furnace oil and kerosene were provided to the customers at subsidized rates Promote industrial growth / competitiveness Reduced energy cost for rural (non-electrified) households Further, increasing share of oil in electricity sector resulted in cost escalation and therefore fiscal instruments were used in managing the product prices. However, increasing importation of oil to cater for demand growth severely affected the national budget that the government was forced to remove almost all the subsidies. Yet, compared to other imported commodities, the taxes imposed for fossil fuels are lower in general. 9 TAXES / SUBSIDIES OF FOSSIL FUELS Government Policies Cost revisions 10 TAXES / SUBSIDIES OF FOSSIL FUELS Taxes on Fossil Fuels Transport Exercise Duty Custom Duty Taxes VAT Crude - - - 2% - Petrol 25 LKR/liter 35 LKR/liter - 5% - Diesel 2.50 LKR/liter 15 LKR/liter - 5% - Fuel PAL NBT 5% Jet Fuel VAT - Value Added Tax; PAL - Ports & Airports Development Levy; NBT - Nation Building Tax Heat / Power. Exercise Duty Custom Duty Taxes VAT Fuel Oil - - - 5% - LPG - - - 5% 2% Kerosene - - - 5% - NG Coal (Anthracite, Bituminous) - 5% 12% 5% 2% - - - - - Lignite, Coke - - 12% 5% Fuel PAL NBT 2%11 Thank You 12