Close examination and assessment of real capacity is necessary in analyzing economic and financial benefits for private sector power plant projects supported by ADB. Nameplate capacity needs to be considered in the context of a plant’s capacity factor. No power plant runs 100% of the time, and power plants, like that of AKL, that run on auto diesel fuel will need to shut down routinely for scheduled maintenance. Routine maintenance combined with unscheduled shutdowns lower actual net capacity. Hence, to mitigate the risk of providing support to nonviable private sector power generation projects, it is necessary that ADB include scheduled shutdowns and the possibility of unscheduled shutdowns when calculating initial economic and financial rates of return.
AES Kelanitissa Power Project in Sri Lanka