By: Staff Writer
November 03, Colombo (LNW): India and Sri Lanka are pushing ahead with a landmark power grid interconnection project, marking a significant turn in regional energy integration. A virtual meeting held on Thursday (30) brought together senior members of the two nations’ energy ministries India’s Power Secretary Pankaj Agarwal and Sri Lanka’s Energy Secretary Prof. K.T.M. Udayanga Hemapala — to nail down implementation modalities and next steps for the venture which, once completed, will link the grids of the two countries.
The interconnection plan foresees a technical specification of approximately 1,000 MW capacity (in two phases of 500 MW each) through a ±320 kV VSC-HVDC (Voltage Source Converter – High Voltage Direct Current) bipole line spanning roughly 240 km of transmission including submarine cable across the Palk Strait.
The cost is estimated at around US$1.225 billion for the first phase alone, with the full project cost likely to exceed this once both phases are complete.
Among the primary benefits: Sri Lanka will gain the ability to import power during domestic shortages crucial during hydro-dry seasons or fuel-supply disruptions—and to export surplus renewable energy (especially solar and wind) to the Indian grid, earning valuable foreign exchange. The link also promises to enhance grid stability, diversify energy sourcing, and integrate Sri Lanka more directly into the broader South Asian regional power market.
However, significant challenges remain. Coordinating technical standards (grid codes, protection, and synchronisation), aligning pricing and tariff mechanisms across jurisdictions, and ensuring regulatory oversight are complex tasks.
There’s also the risk of Sri Lanka becoming overly reliant on imported power potentially reducing incentives for domestic generation investment. Exporting renewables demands robust forecasting systems and storage capacity, while imported power exposes Sri Lanka to price volatility in India’s market. Environmental and social safeguards, as well as cybersecurity and operational reliability of the HVDC link, must be rigorously managed.
The two governments have agreed to continue intensive technical and policy-level discussions and aim to finalise the implementation roadmap in coming months, targeting operation by the late 2020s often cited as 2030 for full commercial readiness.
If executed smoothly, this project could become a model for cross-border electricity trading in South Asia, creating mutual benefits but only if the risks are carefully managed and the regulatory framework strengthened.
