Once provisional approval has been granted the Applicant should obtain the following licenses from the relevant authorities.
Letter of Intent
This document is issued by the Ceylon Electricity Board and signifies the assurance of the CEB to procure the electricity generated by the project.
It also serves to provide the intention of the CEB to buy all power produced by the Developer,
Environmental Protection Licence
A document in the prescribed form should be submitted to the Central Environmental Authority inclusive of the details requested, to ascertain whether approval should be granted for the operation of the Small Scale Power Plant Project.
The Application in the prescribed form should be duly filled and submitted to the Central Environmental Authority to obtain an Environmental Protection License for the Small Scale Power Plant Project.
A holder of the Environmental Protection License has legal authority for the discharge of effluents, deposit wastes; emit smoke/gases/fumes/vapour, noise/vibration into the environment in accordance with the standards and criteria stipulated by the Central Environmental Authority. This will help the Environmental Protection License holder to prevent or minimize the discharges and emissions into the environment from the industrial activity.
The Environmental Protection License can be cancelled under the following circumstances:
- Violation of any terms, standards and conditions of a licence
- Since issue of the licence the receiving environment has been altered or changed due to natural factors or otherwise.
- Where the continued discharge, deposit or emission of waste into the environment under the authority of the licence will or could affect any beneficial use of the environment adversely.
Inspection fee has to be paid only when applying for the first Environmental Protection License. If the applicant fails to submit the renewal application on time, he has to submit a fresh EPL and pay the inspection fee as well. Environmental Protection License should be renewed either three months prior to the date of expiry or prior to one month effecting any changes, alterations or extensions to the activity.
PAC (Provisional Approval Committee Established under the provisions of the Sustainable Energy Authority Act) grants the Energy Permit to the Developer allowing him to use the resource under several conditions. Once an Energy Permit is obtained, it shall be valid for a period of twenty years from the date of commercial operation of the project.
The Applicant will have to pay the required permit fee in the case of projects with capacities of 10MW or less.
The Energy Permit carries a grace period of 2 years and the Developers are required to complete implementation within this period.
Delays to commission the Small Scale Power Plant Project within two years will erode the 20 year life of the Energy Permit from front end of the period, by a period equivalent to the delay caused. At the end of the twenty year period, the Energy Permit is extendable for a maximum further period of twenty years, provided the relevant Small Power Plant Agreement is extendable, based on the conditions stipulated in such agreements or other guidelines effective at that time.
As determined by the Minister, and as per the provisions stated in Sustainable Energy Authority Act, Developers and Operators of Small Scale Power Plant Projects are required to pay an annual royalty on renewable energy resources used.
In the event a Developer is unable to commission the project at the end of the two-year period that is granted to construct the Small Scale Power Plant Project, the Sustainable Energy Authority shall cancel the Energy Permit.
The Developer, possessing an Energy Permit is required to obtain a Generation License from the Public Utilities Commission of Sri Lanka with the enactment of the Sri Lanka Electricity Act 20 of 2009.
The conditions of the Generation License look into all matters pertaining to the operation of the Small Scale Power Plant Project beyond the shaft which transfers power from the prime mover to electricity generator.
Once a Generation License is obtained the same will be valid for a period of twenty years and can be renewed at the end of the
In addition to the above specified licenses, the Applicant may be required to obtain licenses from Local Authorities depending on the energy source utilized and the location of the project etc.