By: Staff Writer
January 05, Colombo (LNW): The government has made energy sector reform a top priority, focusing on reducing Sri Lanka’s notoriously high energy costs and expanding its renewable energy capacity.
As part of its ambitious plans for 2025, the country aims to increase its power generation capacity from 4,043 megawatts (MW) to 6,900 MW, with a significant emphasis on renewable energy sources.
The Sri Lanka Sustainable Energy Authority (SLSEA) is expected to add over 500 MW to the national grid within the next two years, contributing to this goal.
In addition, the government is constructing two natural gas plants, each with a capacity of 350 MW, which are anticipated to become operational between 2024 and 2025. By 2025, existing power plants will also be converted to run on natural gas, further diversifying the country’s energy mix.
To encourage the adoption of renewable energy, the government plans to periodically revise feed-in tariffs for small power plants and rooftop solar users. This move aims to create a more favorable environment for renewable energy producers.
Furthermore, a competitive procurement framework will be applied to streamline the integration of renewable energy projects into the national grid, ensuring efficient and cost-effective implementation.
Energy Minister Eng. Kumara Jayakody recently outlined these ambitious initiatives during a meeting with investors at the Ministry.
During the discussion, the Minister underscored the urgent need to address Sri Lanka’s high energy costs and provide energy at affordable rates.
He emphasized the importance of affordable energy in driving national development and highlighted the potential of renewable energy to unlock significant economic opportunities.
Minister Jayakody reaffirmed the government’s commitment to fostering private-sector participation in energy generation. He stated that the government is pursuing a balanced approach that benefits both the state and investors, assuring prompt solutions to investor concerns.
The meeting also brought together representatives from renewable energy institutions, who shared their perspectives on the challenges facing the sector. Issues such as regulatory barriers and operational delays were highlighted, but optimism remained high as SLSEA projects are expected to contribute over 500 MW to the national grid in the near future.
Recognizing the potential of these projects, Minister Jayakody directed government officials to expedite policy decisions and strengthen inter-agency collaboration to address bottlenecks.
He stressed the government’s commitment to achieving the country’s energy goals while ensuring that investor expectations are met, stating, “We are working to provide prompt solutions to problems and create an environment that supports investment.”
These reforms underscore Sri Lanka’s determination to transition to a more sustainable energy future while ensuring affordability and economic growth.
