July 24, Colombo (LNW): The Renewable Energy Protectors’ Association (REPA) recently conducted a media briefing to express their concerns regarding the Government’s decision to cut tariff rates for new rooftop solar and renewable energy projects, effective from July 1.
REPA and other organizations cautioned that this decision might discourage local investment and impede the growth of the renewable energy sector. They stressed the crucial role of energy supply in economic development and called on the Government to back sustainable energy efforts.
REPA Chairman Darshana Liyanasekara highlighted the numerous advantages of renewable energy, stating that generating and using sustainable energy supports global goals and fosters international collaboration.
“Solar power is highly viable due to the consistent sunlight and ample space available for installation,” he explained. “It involves low investment and maintenance costs, requires minimal foreign exchange, and is environmentally friendly.
The revenue generated remains in the country, boosting the local economy and creating jobs. Solar power contributes to the 2050 zero-carbon energy goals, reduces production costs for local industries, and is essential for achieving the 70% renewable energy target by 2030.”
REPA Secretary Amal Sarathchandra addressed the obstacles to promoting solar energy, pointing out that local investors are discouraged by unfair price changes and delays in project approvals.
“Trust is further eroded by the suspension of new project contracts and insufficient support for existing installations,” he said. “Financial relief is challenging to obtain, and the tax system imposes taxes on solar equipment like panels and inverters.”
REPA Vice President Suresh Galanga stressed the importance of supporting local investors. He argued that while foreign investments provide temporary capital, they have long-term financial drawbacks, similar to foreign debt.
“Money paid for electricity from foreign projects leaves the country, much like expenses for diesel and coal,” he said. “Supporting local investors through prioritized procurement guidelines and assistance is crucial for rejuvenating the renewable energy sector.”
REPA Treasurer Chanaka Jayawardena noted that increasing renewable energy generation, including solar power, would significantly benefit the country economically, given the high costs of fuel-based power generation. “
In 2022 and 2023, Rs. 203.7 billion and Rs. 278.9 billion were spent on fuel-based power generation, respectively.
This expenditure poses a threat to the economy both in the short and long term. Installing 1,000 megawatts of solar power could produce 1,320 gigawatt-hours annually at a cost of Rs. 48.8 billion, whereas generating the same amount with diesel would cost Rs. 92.4 billion.”
Electricity Consumers’ Association President M.D.R. Athula and General Secretary Sanjeewa Dhammika also attended the briefing. They criticized the CEB’s General Manager for instructing officials to enter agreements under the revised tariff rates despite the Public Utilities Commission’s directive not to implement them.
