By: Staff Writer
January 26, Colombo (LNW): Sri Lanka’s transition toward renewable energy, particularly solar power, is widely recognised as both an economic and environmental necessity. With abundant sunlight and rising electricity demand, solar energy is expected to play a central role in reducing fuel imports and stabilising long-term power costs. However, recent developments reveal that policy execution, rather than resource scarcity, is emerging as the sector’s most pressing challenge.
Cabinet-approved battery energy storage tariff, announced in mid-2025, was intended to address a known limitation of solar power: its concentration during daytime hours. Battery systems would allow excess energy to be stored and dispatched during night-time peak demand, easing pressure on the grid. While the policy decision signaled intent, delays in issuing implementation guidelines and Power Purchase Agreement (PPA) amendments have prevented developers from acting on it.
In the absence of storage infrastructure, the Ceylon Electricity Board has increasingly relied on curtailing solar power generation to maintain grid stability. Initially limited to weekends and holidays, curtailment has since extended into weekdays, resulting in energy wastage and reduced revenue for developers. Although curtailment is a technically valid short-term response, its continued use highlights the lack of synchronisation between planning, regulation, and system operations.
Industry representatives argue that regulatory certainty is critical for infrastructure investment. Battery energy storage systems require months of preparation, financing arrangements, and procurement. Without formal guidelines or clear tariff mechanisms, even willing investors are unable to proceed. This has created a policy bottleneck where approved decisions remain inactive, while operational risks are transferred to private sector participants.
Another challenge lies in institutional coordination. Energy sector experts note that effective renewable integration depends on close collaboration between policymakers, grid engineers, financial planners, and procurement specialists. When decision-making is concentrated or rushed, the system risks overlooking technical constraints and long-term cost implications. A broader consultative process within the Power and Energy Ministry could improve outcomes by aligning policy ambition with operational feasibility.
Encouragingly, steps such as reducing import taxes on battery storage equipment indicate awareness of the cost barriers involved. However, isolated measures are insufficient without a comprehensive framework that includes competitive procurement, standardised contracts, and transparent timelines. Large-scale battery projects, as demonstrated by recent tenders, may offer cost efficiencies, but these too require clear direction from authorities.
Sri Lanka’s solar industry remains supportive of national renewable energy goals and continues to advocate solutions rather than confrontation. With timely guidelines, structured tenders, and inclusive decision-making, the current challenges can still be converted into an opportunity to strengthen the power system.
Ultimately, bridging the gap between policy decisions and implementation will determine whether Sri Lanka’s solar potential becomes a cornerstone of energy security or a missed opportunity shaped by avoidable delays.
