Legal action looms over CEB bullying solar firms
Grid-connected solar power developers are appalled at the audacity of the insubordination of state authorities in implementing cabinet directives related to their industry, and bully behaviour towards them, with members eyeing legal action to resolve the issue.
Prabath Wickramasinghe, President of the Grid Connected Solar Power Association of Sri Lanka (GCSPA), revealed that approval for a battery storage system (BESS) has been delayed by the Ceylon Electricity Board (CEB) despite the Cabinet’s price approval of Rs. 45.80 per unit and tax concessions from the Finance Ministry last year.
These renewable plants are classified as “Must Run” facilities, requiring dispatch to cover operational costs, but recent CEB actions have undermined contractual agreements. GCSPA is calling for compensation from the CEB and Ministry of Power and Energy, highlighting that any long-term solutions would take years to implement.
Curtailment of solar power plants results in losses of 4 million electricity units daily. With 1,800 MW supplied by local developers, prolonged power curtailment since February 2025 has reduced income by 15 per cent.
“Right now, some plans are curtailed. Most of these stations were built with 70 to 80 per cent of loans from banks. These financial institutions have lent to us on the strength of the Power Purchase Agreement with the CEB. We can chug along, prolonging payments to these institutions for a few months, but after that, we hit a wall. Besides, these institutions have also lent public money,” Kishan Nanayakkara, GCSPA Ex-committee Member, said on Wednesday, addressing the media. He said that the renewable energy plans would only be paid if dispatched, and they need to be dispatched to cover the operational and construction costs.
Mr. Wickremasinghe noted that there are many arguments in favour of this payment, but nothing has been forthcoming from the authorities. “This issue has to be resolved immediately. It is like the left hand does not know what the right hand is doing.”
Collectively, the industry has invested Rs. 43 million in these plants. Due to the current ailment, the issue of non-payment, the country has lost Rs.2000 million.
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