ECONOMYNEXT – Sri Lanka’s power sector has to invest 11 billion US dollars from 2023 to 2030 to reach a target to produce 70 percent of energy through renewable power, Ceylon Electricity Board General Manager Rohan Seneviratne said.
About 5 billion US dollars has to be invested in infrastructure including transmission, battery banks and a pump storage plan to be able to absorb renewable energy.
About 1.6 billion has to be spent on transmission, about 1.5 billion dollars on battery storage, Seneviratne said.
Power plants are to be privately financed.
CEB will seek funding from lending agencies for battery and pump storage infrastructure.
Some of the transmission lines could also be private sector financed, and repaid through annuities, Seneviratne said.
Vietnam this year cut extra profits given to renewable suppliers through feed in tariffs moving to more market based prices due to grid stability, and absorption issues.
To reach a target of 70 percent renewable energy, large investments have to be made in grid capacity and transmission lines to absorb the energy, Minister Wijesekera told a forum organized by the Asian Development Bank.
“We hope the ADB continues to support this cause, we will be coming much more to you for technical assistance and also financial assistance,” Minister Wijesekera said.
“CEB alone will not be able to fulfill the requirements of the infrastructure development.
“The General Manager of the Ceylon Electricity Board, along with officials have worked tirelessly over the last 12 months to identify the areas that we need to infuse the investment into.”
ADB’s Sri Lanka Country Director Takafumi Kadono said the Manila-based lender was “standing right behind”
Sri Lanka in its journey.
Sri Lanka is planning to unbundle the electricity sector setting up four distribution companies in addition to the existing Lanka Electric Company, Minister Wijesekera said.
Related Sri Lanka electricity reforms to parliament in September: Minister
The ADB has helped set up the Lanka Electric Company in 1980 and was also a key funder of the CEB’s rural electrification projects in making Sri Lanka 100 percent electrified . (Colombo/July11/2023)