Power Ministry cross with slow renewable energy projects
The Power and Energy Ministry has sent letters to firms with renewable energy (RE) projects that have been making little or no progress and crowding out other potential bidders.
“The ministry wants to release the already awarded but stalled projects and give them to others who are interested in doing them. The minister has already written to firms with projects worth 100 megawatts requesting them to hurry up with the projects or to hand them back to the ministry,” a ministry official told the Business Times.
This is mainly because the slow projects are holding up grid capacity, he added. He also said the minister was very concerned that projects which were awarded are being held without any progress.
“He says it’s already late and more time cannot be given to these projects,” the official elaborated.
He said that with a cost-reflective tariff for solar as well as the Ceylon Electricity Board (CEB) committing to its obligations, the industry can re-establish the buoyant trend seen in the industry in 2021.
Meanwhile, the CEB has started paying ground-mounted solar firms in addition to roof-mounted solar. “The solar industry is catching up on past payments with the CEB. We are optimistic that projects can be resumed with these payments coming through and we can source bank loans now,” Kushan Jayasuriya, Vice President, Solar Industries Association, told the Business Times.
State Minister of Finance Shehan Semasinghe told the Business Times that the government is keen on developing the renewable energy sector and has already called expressions of interest for suitable projects. “We have a lot of solar and wind opportunities. We can subsidise fuel imports by encouraging renewable energy. The renewable energy industry should be encouraged for future benefits in the country,” he added.
Last year, 211 megawatts of renewable energy were added to the energy mix, of which 146 megawatts came from rooftop solar energy projects.
The Sri Lankan Solar Energy industry has seen a 66 per cent drop in new solar power plants last year, compared to 2021 amply reflecting the unfeasibility of establishing new plants, thereby further putting a strain on the power supply to the National Grid. During 2027-2030, an additional 3,075 megawatts are expected to come from renewable energy sources and 1,525 megawatts from battery storage.
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