Sri Lankan government decides to revise rooftop solar tariffs to boost renewable energy supply
Daily FT: Cabinet of Ministers has approved the revision of rooftop solar tariff charges.
The move is part of the Cabinet decision taken in January 2022, to boost renewable energy supply via a program promoting installation of Battery Energy Storage Battery Systems for rooftop solar systems.
“The two-tier existing tariff rate of Rs. 22 and Rs. 15.50 will be revised to a flat rate of Rs. 37 for below 500 KW capacity and Rs. 34.50 will be charged for over 500 KW rooftop solar for a period of 20 years,” Power and Energy Minister Kanchana Wijesekera announced via Twitter recently.
It is also part of the Government’s policy decision to generate 70% of the electricity requirement from renewable energy sources by 2030 and to zero carbon emissions by 2050.
Minister Wijesekera added that the tariffs approved by the Cabinet will be revised annually based on a price formula.
The proposal to this effect submitted by Power and Energy Minister Kanchana Wijesekera was approved by the Cabinet of Ministers.
Minister Wijesekara also said a $ 100 million credit line extended by the Indian Government for rooftop solar will be utilised to equip several State-owned buildings for power generation.
He made these remarks following a progress review meeting. The meeting was attended by officials from the Indian High Commission, State Minister D.V. Chanaka, the Ceylon Electricity Board and the Sustainable Energy Authority of Sri Lanka.
Schools, universities, education institutes, hospitals, districts, Divisional Secretariats, Government buildings and religious institutes will be equipped with rooftop solar, utilising the Indian credit line, the Minister said via Twitter.
At present, about 400 MW of the country’s power grid is being supplied by rooftop solar systems.
Following the Cabinet decision in January, the Power and Energy Minister in May 2022 announced that the Government will launch a rapid renewable energy generation plan from June onwards, which will be executed in two quick steps which include; conversion of rooftops to solar panels and extending immediate nod to provisional approval for proposed renewable energy proposals.
OSL take:
Sri Lanka’s growing demand for power and the ongoing power crisis in the country have opened up a host of new business/investment opportunities in the country’s power industry, especially in the renewable energy generation sector. The government of Sri Lanka has introduced several incentive schemes to attract foreign businesses/investors to the renewable energy generation sector. The growing business potential in the country’s power industry has resulted in many foreign businesses/investors expressing interest in entering the renewable energy generation sector. Local authorities have taken many steps to ease the process of investing and starting renewable energy projects in Sri Lanka, which includes competitive tariff rates for power generated through renewable energy sources. Given the expanding opportunities in Sri Lanka’s renewable energy sector, foreign businesses/investors could explore the growing opportunities in the sector.
| Article Code : | VBS/AT/08112022/AT_4 |