Sri Lanka to do away with competitive bidding for renewable energy generation
Sri Lanka’s Power Minister Mahinda Amaraweera has reportedly called for fixed prices to be set for renewable energy after doing away with the current system of competitive bidding.
The announcement was made public by Sri Lanka’s Power and Energy Ministry
Meanwhile, Sri Lanka’s State Minister for Power Mahindananda Aluthgamage has reportedly claimed that various prices charged for mini hydro, wind and solar power was causing losses to the state operated Ceylon Electricity Board (CEB).
According to reports, the CEB is currently operating on a competitive bidding system, forcing private companies to compete against each other.
However, delays in approvals for renewable energy generation options have pushed the government to purchase power at higher rates when being purchased as emergency power.
Minister Amaraweera has stated that the CEB had to pay Rs. 6.5 billion for emergency power in 2019 and renewable plants should be expedited to overcome such a scenario in 2020.
OSL take:
The impending power crisis in Sri Lanka has opened up many business/investment opportunities in Sri Lanka’s power and energy sector. Despite opting to purchase emergency power at high costs, the government of Sri Lanka is committed to promoting renewable energy generation options in the country. Foreign businesses engaged in the power and energy sector could explore the opportunities in Sri Lanka to set up renewable energy generation options.
| Article Code : | VBS/AT/20200116/Z_5 |