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Govt. in major renewable energy drive to deliver region’s lowest-cost power
View(s):By Namini Wijedasa
The government has vowed to direct current oil-based electricity generation towards low-cost renewable solar and wind sources while implementing competitive procurement and price-calling “to make Sri Lanka a country with the lowest electricity bill in the region.”
The Energy Ministry’s official list of commitments also includes an undertaking to gradually add 2,000 MW of electricity to the national grid using solar power and to popularise rooftop solar panels and domestic energy storage units through “new business models, methods and competitiveness.”
Last month, however, the government significantly slashed the tariffs the Ceylon Electricity Board (CEB) will pay to private producers of rooftop solar power by 20 to 40 percent compared with previous prices. It also cut tariffs per kilowatt hour of electricity generated through all other renewable sources, including wind, hydro and biomass.
A group of solar power project developers has challenged the move in the Court of Appeal, questioning the legality of the tariff reduction and arguing that it was carried out without the requisite approval of the Public Utilities Commission of Sri Lanka (PUCSL). The case is fixed for support on August 4.
The government earlier this year set benchmarks for all ministries to meet in alignment with the National People’s Power election manifesto. The Sunday Times obtained the list by filing a request with the Presidential Secretariat under the Right to Information Act.
Despite subsequent actions—including cutting tariffs—the Energy Ministry’s commitments focus heavily on promoting renewable energy. There is even a high-flown pledge to leverage the latest satellite technology and equipment to “accurately forecast the weather and calculate energy demand for the country to maximise utilisation of hydroelectricity, wind and solar-generated electricity.”
Another is to conduct research and development to promote locally produced rooftop solar systems, equipment and connectivity devices to the national grid and to expand research on renewable energy and prioritise the Akwerala wind power project to reduce dependency on fossil fuel consumption.
There are commitments to add sustainable energy to the electricity system and provide for demand response through smart grids; to facilitate suitable investments to introduce wind power sources to local and foreign markets; to establish an institute with local universities and professionals in the industry to introduce green hydrogen to the economy; and to begin pilot projects in partnership with reputed institutions in green hydrogen technology in the world.
The Energy Ministry’s undertakings also include starting pilot projects in partnership with reputed institutions in green hydrogen technology; conducting studies on the ability to establish hybrid systems as well as battery systems and power plants that pump and store water using solar power, and to introduce project models to call suitable investors; renewing small-scale hydropower plant agreements to encourage reinvestments in the profitable energy field; and encouraging state schools, hospitals and religious institutions to use solar power systems with energy conservation.
It has even committed to establishing a network of island-wide battery charging centres for electric vehicles and to ensuring that local companies get equal opportunities in investments in national renewable energy projects.
On the fossil fuel front, the Energy Ministry must facilitate the import of liquefied natural gas through a competitively procured terminal and fuel sources; transform 1,500MW of existing thermal power plants into liquefied natural gas plants; and take speedy action to enter into excavation and new exploration agreements to extract natural gas that has been identified in the Mannar and Kaveri basins.
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