ECONOMYNEXT – Manila-based Asian Development Bank said it had approved a 100 million US dollar policy loan to support reforms in the power sector in co-ordination with a reform program backed by the International Monetary Fund.
“Developing cost-competitive renewable energy and providing reliable and affordable electricity supply—with a transparent and independent power sector regulatory framework—will help Sri Lanka drive economic growth and address the current financial and economic crisis,” ADB’s Principal Energy Specialist Jaimes Kolantharaj said in a statement.
“This program will support reforms in the power sector introduced under the Electricity Act, including institutional and regulatory reforms and improve operational sustainability of the electricity sector.
“The program will also support the development of renewable energy to accelerate the country’s transition to clean energy as envisaged under Sri Lanka’s nationally determined contributions.”
The reforms will help create a conducive environment for private investments, boosting renewable energy development, and modernizing power grids.
It will support regulatory reforms with the implementation of a new national tariff policy that will improve financial sustainability of the sector through cost-reflective tariffs.
“The key initiatives include implementing a periodic revision of feed-in tariffs for small power plants and rooftop solar users, facilitating integration of renewable energy projects into the national grid, and effective application of a competitive procurement framework for renewable energy projects,” the ADB said.
Increased women’s participation in the power sector by developing policies to promote equitable participation of female customers, female entrepreneurs, and women and disadvantaged community groups will be supported.
ADB will provide a one million dollar technical assistance grant from its Technical Assistance Special Fund to support program implementation, capacity building of electricity companies, the development of their business plans and overall power system development plans. (Colombo/June11/2024)