$ 100 m Indian credit line to boost solar power in Sri Lanka

President Gotabaya Rajapaksa with Indian High Commissioner Gopal Baglay. Finance Secretary S.R. Attygalle  (right)  is also present 

The Government is to boost solar power generation with a $ 100 million credit line from India. 

An agreement to this effect was signed by Finance Secretary S.R. Attygalle and Indian High Commissioner Gopal Baglay in the presence of President Gotabaya Rajapaksa.

The funding will be from the Export Import Bank of India.

The President’s Media Office said support for solar power projects is as per the National Policy Framework ‘Vistas of Prosperity and Splendour’, which announced measures to increase the contribution by renewable energy sources to the national power grid.

“A key plan of the Government is to generate solar power by obtaining the contribution of State-owned buildings, places of worship and houses of the low-income families. It is expected to provide financial benefit to low-income households and to curtail the expenses incurred by the State institutions for electricity from the project,” a statement said. 

“Steps will also be taken to provide facilities to store solar energy in batteries for the low-income families that are unable to access the national power grid. The project also includes generating power by installing floating solar panels as a solution to land scarcity,” it added. 

Under the first phase of this, plans have been initiated to generate electricity required for the Parliament centring the Diyawanna Lake as a model project.

State Minister Duminda Dissanayake, Foreign Secretary Admiral Jayanath Colombage, Ministry of Power Secretary Wasantha Perera, and the officials of the Indian High Commission and the Finance Ministry were also present.

The Indian High Commission in an announcement separately said India becomes the first country to partner with Sri Lanka in fulfilling the vision of the President Gotabaya Rajapaksa, to ensure that 70% of Sri Lanka’s national power requirements are fulfilled by renewable energy sources by 2030, as reiterated during his address at the recently concluded Sri Lanka Investment Forum.

The $ 100 million LOC will help finance various projects in the solar energy sector in Sri Lanka, including those announced during the Founding Conference of the International Solar Alliance (ISA) held in March 2018, such as rooftop solar photo-voltaic systems for households and Government buildings.

It said that 89 countries, including Sri Lanka, have signed the Framework Agreement of the ISA, which was jointly launched by the Prime Minister of India and the President of France, to bring together countries to promote large-scale deployment of solar energy and overcome challenges related to technology, finance and capacity.

“President Gotabaya Rajapaksa and High Commissioner of India discussed the striking similarity in the national objectives outlined by India and Sri Lanka in connection with solar energy,” the Indian statement said.

“The shared vision of our countries in the renewable energy sector reflects our common national priorities and convergence of approaches for sustainable development. Strengthening collaboration in this vital sector will help enhance our overall energy partnership and contribute towards our global efforts to tackle climate change and reduce emissions,” the statement added.

It said over the past seven years, solar power generation in India has increased significantly to reach 34.6 GW in 2021 from about 2.6 GW in March 2014. The National Solar Mission of India aims to increase it further to 100 GW and beyond.