Renewables industry says it is only solution to energy crisis

From left: Wind Power Development Association Secretary Manjula Perera, Small Hydro Power Developers Association President Thusitha Peiris, Bio Energy Developers Association President Chamil Silva, Ground Mounted Solar Developers Association President Lasith Wimalasena and Solar Industries Association President Kushan Jayasuriya – Pic by Lasantha Kumara  

By Shailendree Wickrama Adittiya

Renewables energy industry yesterday declared  it is the solution to the country’s power crisis and alleged  the Ceylon Electricity Board (CEB) had not made payments to solar and wind producers since July 2021.

“Today, even the CEB has recognised the current crisis and accepted that 70% renewable energy by 2030 is a must. They are currently making changes to their generation plan to add this 70% to it,” Wind Power Developers Association Secretary Manjula Perera said at a discussion held yesterday on renewable energy being the only solution to Sri Lanka’s energy crisis.

The implementation of 70% renewable energy policy depends on CEB’s long-term generation plan. According to Perera, the long-term generation plan prepared by CEB was for 50% renewable energy and was thus rejected by the Public Utilities Commission of Sri Lanka (PUCSL).

“The CEB has accepted the 70% and are currently making changes to the long-term generation plan. It is likely to be resubmitted to the PUCSL for approval next month with the addition of the 70%,” Manjula Perera said, adding that the process towards achieving the 70% goal will begin thereafter.

At present, total generation from renewable energy sources is 1,198.33 MW and the energy contributed by these non-conventional renewable energy (NCRE) plants is 2,200 GWh. This is 13% of the annual energy contribution.

However, industry stakeholders said yesterday that CEB owes close to Rs.25 billion to solar and wind energy producers as there are arrears of five months for ongoing projects. The pending payments since July 2021 make it difficult for those in the renewable energy sector to pay loans and cover operational expenses.

A request was also made to fast track evaluation and approval procedures, which were time consuming and discouraging.

“The Sri Lanka Sustainable Energy Authority was established as a one stop shop to get approval for all renewable energy projects. However, there is no one stop shop concept there,” Small Hydro Power Developers Association President Thusitha Peiris said, adding that they are instead required to work separately with environment, irrigation, and wildlife authorities as well as Provincial Councils.

This makes the process of implementing renewable energy projects a lengthy one, which is why the industry is calling for a high-powered committee and a streamlining of processes.

Other concerns raised by industry stakeholders include a shortage of equipment, Government policy that prevents banks from issuing debt instalments for non-priority HS codes, and provisions of the Sri Lanka Electricity Act No. 20 of 2009 that discourages local investors who preferred standard tariffs and standard agreements over the tendering process.

Despite these challenges and barriers, industry stakeholders are confident that renewable energy is the solution to the power crisis the country is facing.

“Every year, the power crisis occurs during January to May. The reason for this is because large hydro plants face water shortages due to a lack of rain. During this period, the country gets a lot of sun. If we use solar power during such shortages, it is a good solution,” Ground Mounted Solar Developers Association President Lasith Wimalasena said.