10. Issue of licence to the National System Operator,the Board of Directors and functions

A Company referred to in section 9 shall be the “National System Operator” (hereinafter referred to as the “National System Operator”) and a national system operator licence shall be issued to such company by the

The administration and management of the affairs of the National System Operator shall be vested in a Board of Directors appointed by the Minister which shall consist of –

a representative from the Ministry of the Minister holding a position not less than an additional secretary;

a Deputy Secretary to the Treasury;

an electrical engineer who has at least fifteen years of experience in power system operation and planning;

a person who has at least fifteen years of experience in project finance and procurement;

a person who has expertise, reached eminence and has at least fifteen years of experience in commercial law, and one of whom shall be appointed as the Chairperson by the Minister.

The Chief Executive Officer of the National System

The Board of Directors and the Chief Executive

Any Director or the Chief Executive Officer who is directly or indirectly interested in any matter that is to be taken up before the Board shall disclose the nature of such interest to the Board and shall not take part in any deliberation or decision of the Board with regard to that matter.

operating and maintaining the System Control

submitting the annual power procurement plan based on the least economic cost on or before the thirtieth day of September of every year to the

ensuring that the integrated operation of the power system of the country be based on the projections in the annual power procurement plan, and the monitoring and reporting at the end of every calendar month, of any variations from the annual power procurement plan to the Regulator with reasons therefor;

the coordinated operation of the power system to ensure in real time the balance between electricity supply and demand and for this purpose, shall ensure-

compliance with principles, guidelines and methodologies in respect of optimal generation scheduling and dispatch, as shall be prescribed;

optimal generation scheduling and dispatch of electricity from the generating plants in accordance with the power purchase agreements or standardized power purchase agreements which have been entered into or have been transferred to the National

carrying out real time operations for grid control and daily power dispatch through the secure and economic operation of the

ensuring the non-discriminatory transmission congestion management in a timely and effective manner;

the establishment of a bulk supply transactions account and monthly public disclosure of the details of such account to record all financial transactions relating to the purchase of bulk electricity from a generation licensee through power purchase agreements or standardized power purchase agreements and selling to the distribution licensees through power sales agreements, or with the prior approval of the

maintaining records of the quantity and quality of electricity, transmitted through the National

exercising supervision and control over the overall operation of the National Grid of Sri Lanka; and

subject to the provisions of section 11, procuring energy storage and ancillary services as determined, from time to time, to manage the intermittent nature of output from renewable energy plants, in accordance with the procedures approved by the Regulator:

generation scheduling, commitment, and merit order economic dispatch of generating plants;

optimised planning of future power system to meet the electricity demand taking into consideration cost, economic value and decarbonisation objects;

operation and maintenance of the System Control

procurement of electricity in bulk form, from the generation licensees and sale of such procured electricity in bulk form to distribution licensees and to any other consumers trading in the domestic, regional or international market, shall be done consequent to the vesting of the aforesaid functions of the Ceylon Electricity Board in the National

The Regulator shall, after consultation with the relevant stakeholders including the licensees, provide recommendations to the National System Operator within two months of receipt of the Plan.

The National System Operator shall finalise the plan taking into consideration, the recommendations received under paragraph (a) and submit the same to the

include plans to ensure that there is sufficient capacity from generation plants to meet the reasonable estimated demand for electricity, for both generation expansion and transmission network development, inclusive of evaluation of least economic cost generation technologies, energy conversion and storage technologies, and other demand side technologies;

identify the power generation capacity additions needed to meet the expected demand for electricity based on the priorities outlined in the national electricity policy;

identify new transmission capacity and transmission assets to augment the National Grid of Sri Lanka specified in section 15 and to provide connectivity to new power plants or to provide connectivity to the regional markets in accordance with the approved Long Term Power Development

The National System Operator shall have the exclusive right of trading electricity with other countries under the authority of a National System Operator licence issued under this Act.

The terms and conditions of trading which is intended to be done under paragraph (a) shall be approved by the Cabinet of Ministers.

No generation licensee shall be authorised to directly sell electricity to any country and no consumer or distribution licensee shall be authorised to purchase electricity from any country.

power purchase agreements with generation licensees and transmission service agreements with transmission licensees as specified in subsection (12):

power purchase agreements with generation licensees incorporated under the preliminary transfer plan specified in paragraph (a) of subsection (2) of section 18;

power sales agreements with distribution licensees incorporated under the preliminary transfer plan specified in paragraph (a) of subsection (2) of section 18;

a transmission service agreement with the