Sri Lanka opens bidding to build 18 grid substations to buy 152 MW solar power
Daily FT: The Cabinet of Ministers has approved allocating a solar generation capacity of 152 MW spread across 18 grid substations for development exclusively through international competitive bidding.
The 152MW capacity will be allocated exclusively through an open international competitive bidding process, ensuring transparency, quality and value for money.
“Requests for proposals (RFPs) will soon be issued, targeting project developers under a build-own-operate (BOO) model,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing.
He said the move is in recognition of recent shifts in national energy dynamics, including a slower-than-expected rise in overall electricity demand and a notable surge in rooftop solar installations. With rooftop solar rapidly gaining traction, the Government aims to optimise the country’s available grid capacity by inviting global developers to bid for ground-mounted solar projects.
The decision aligns with the Government’s ambitious long-term generation plan (2023–2042), which targets sourcing 70% of the country’s total electricity demand from renewable energy by 2030.
The proposal to this effect was submitted by Power Minister Eng. Kumara Jayakody was approved by the Cabinet of Ministers.
OSL take:
Sri Lanka’s expanding economic activities and the overall economic expansion have resulted in the growth of the country’s power industry, especially in the renewable energy generation sector. The renewable energy sector therefore has become a hotspot for business/investment opportunities. The Sri Lankan government’s commitment to expand the country’s renewable energy component to 70% of the total power mix, has added to the overall expansion of business/investment opportunities in the renewable energy sector. The growth and profits recorded by local businesses engaged in the renewable energy sector also indicate the lucrative nature of the opportunities in the sector. Foreign businesses/investors could therefore explore the expanding business/investment opportunities in Sri Lanka’s renewable energy generation sector while also looking at the possibilities of expanding operations through partnerships or joint ventures with local businesses already engaged in the sector.
| Article Code : | VBS/AT/20250505/Z_4 |