By: Staff Writer
March 23, Colombo (LNW): Sri Lanka is set to commence work on a joint solar power project with India during Indian Prime Minister Narendra Modi’s visit on April 5, according to President Anura Kumara Dissanayake.
The project, located in Sampur, is a collaboration between India’s National Thermal Power Corporation (NTPC) and Sri Lanka’s Ceylon Electricity Board (CEB). A power purchase agreement has been signed at a rate of 5.97 US cents per unit, ensuring electricity supply to the national grid.
Originally, the NTPC and CEB had planned a 500 MW coal power plant at the same location. However, the project was abandoned due to various challenges just before international tenders for turbines were to be issued. Instead, Trincomalee is now being developed as an energy hub, with the solar project forming a key part of this initiative.
The proposed 50 MW solar power plant in Sampur has faced delays due to pending approvals for the energy transmission line and finalization of power purchasing agreements (PPAs). Although the Sri Lanka Sustainable Energy Authority (SLSEA) has already issued the necessary energy permit, the CEB still needs to complete the purchasing agreements before construction can begin.
In 2022, India’s NTPC and the CEB signed an agreement to jointly establish the solar plant, marking a decade since a previous agreement for a coal power plant was scrapped. However, despite nearly a year passing since the signing, physical progress on the project remains slow.
A recent meeting of the India-Sri Lanka Joint Working Group (JWG) on power sector cooperation, held on February 28, 2024, focused on critical energy initiatives, including the Sampur solar project and plans for power grid interconnection between the two countries.
The Indian delegation included officials from multiple ministries and power sector agencies, while the Sri Lankan side was represented by the Ministry of Power and Energy, the CEB, and the Ministry of Foreign Affairs.
The discussion emphasized the importance of the power grid interconnection, which would allow Sri Lanka to initially import electricity from India at lower costs and, in the future, export power once its offshore wind energy potential is developed. This grid link is expected to attract private investment in Sri Lanka’s power sector, enabling increased power capacity for both domestic use and export.
Both countries acknowledged the substantial progress made on the Sampur project following President Dissanayake’s visit to India in July 2023, during which an energy permit was granted to the implementing agency, Trincomalee Power Corporation Limited. The meeting concluded with an agreement to finalize necessary contracts within a set timeframe to accelerate project implementation.
Additionally, India agreed to provide technical assistance to the CEB in various energy-related areas, as identified by Sri Lanka. The JWG, which last convened in June 2019, aims to further strengthen bilateral cooperation in the energy sector.
