Kanchana highlights competitive renewable energy bids, achievements amid criticism

• Credits economic and political stability, along with policy and legal framework changes by Power and Energy Ministry for positive developments
• Says despite opposition, key decisions like cost-reflective pricing have enabled CEB to pay renewable energy developers on time, aiding financing
• Opines revised rates for renewable energy encouraged investments 
• States competitive bids, revised feeding tariff rates have been implemented, with expedited approval processes for projects
• Notes Sri Lanka achieved over 1,000 MW from solar power generation by June 2024, with 944 MW from rooftop solar, 156 MW from ground mount solar
• Assures country on track to reach over 1,000 MW from rooftop solar by end 2024, targets 150 MW per year for next 4 years
• Says during first 5-months 132 MW already connected to national grid

Power and Energy Minister Kanchana Wijesekera announced that the bidding process for renewable energy projects in the country is becoming increasingly competitive, with more developers participating. 

His statement comes in response to heavy criticism from industry experts and the public regarding the Adani Group’s Mannar wind power project deal.

Taking to ‘X’ Wijesekera credited the economic and political stability brought about by the President and the Government, as well as positive policy and legal framework changes implemented by the Ministry of Power and Energy (MOPE). 

He emphasised that despite opposition and negative remarks from politically-affiliated trade unions and opposition parties, key decisions, such as cost-reflective pricing, have enabled the Ceylon Electricity Board (CEB) to pay renewable energy (RE) developers on time, facilitating easier financing for these developers.

“Two years ago, the Government revised and increased the rates for rooftop solar from Rs. 22 to 37, the feeding tariff for ground mount solar to Rs. 33, and wind to Rs. 30 to encourage continued investment in the sector. With new competitive bids, the MOPE has taken steps to revise feeding tariff rates and formulas for negotiating RE projects, benchmarking and applying new rates and economic indicators. The approval process has also been expedited, with the Ministry hoping to conclude the awarding of the lowest and successful bidders for the Mannar 50 MW wind tender and 165 MW tenders in the next two weeks,” he explained.

Wijesekara said the Government has also made significant policy and legal changes in the new electricity act, mandating energy procurement only through competitive bidding processes in the future. 

He said the recent tendered projects include:

• Siyambalanduwa 100 MW Solar: Awarded to Lakdhanavi, Windforce, Blue Circle Consortium at $ 8 cents per kWh in August 2023
• Samanalawewa Floating Solar: 200 MW, with bids from 14 developers ranging from $ 8.15 cents per kWh, received in March 2024
• Mannar 50 MW Wind: Bids received from WindForce PLC ($ 4.88 cents), Vidulanka ($ 4.98 cents) and Lakdhanavi Ltd. ($ 5.90 cents)
• 165 MW Tender: All bids between Rs. 15-29 per kWh, currently under evaluation by CEB

Negotiated tariffs for Expression of Interest (EOI) projects and Government-to-Government (G-G) agreements include:

• Oddamawadi 100 MW: $ 8.76 cents per kWh by Orbital Energy
• Mannar and Pooneryn 484 MW Wind: $ 8.26 cents per kWh by Adani Green Energy

Minister Wijesekara also said Sri Lanka achieved over 1000 MW from solar power generation by June 2024, with 944 MW from rooftop solar and 156 MW from ground mount solar connected to the national grid. 

He assured that the country is on track to reach over 1,000 MW from rooftop solar by the end of the year, with a long-term target of 150 MW per year for the next four years. “In the first five months of the year, 132 MW have already been connected to the national grid,” he noted.