The central government and its policies are often criticized for the various hardships faced by Sri Lanka today. However, when it comes to implementing investments and projects in the renewable energy sector, the central government has demonstrated commendable policies and intentions. Despite this, the implementation of these projects has been significantly hampered by bureaucracy, corruption, and the personal agendas of a few officials within the Ceylon Electricity Board (CEB).
The current energy crisis in Sri Lanka can be attributed to an imbalance in the types of power plants: there is an overcapacity in non-renewable power plants and a severe undercapacity in renewable energy (RE) plants. It is an open secret that some CEB officials are resistant to utility-scale renewable energy projects, showing a clear preference for non-renewable sources while opposing large-scale wind, solar, and battery storage projects.
Renewable energy sources, being clean and cost-effective, have not been implemented on a large scale in Sri Lanka, despite the country having significant potential for solar and wind energy. Currently, renewable energy (excluding hydro) constitutes only about 12% of the national grid. This is far from the critical limit that would be affected by the fluctuating nature of renewable sources.
CEB officials often cite the unreliable nature of renewable energy as the primary reason for their opposition. However, the underlying issue appears to be that an abundance of RE power would undermine their control and disrupt their personal agendas. This resistance is evident in the CEB’s reluctance to approve proposals from RE investors, even when the offered rates are lower.
Currently, the CEB is obstructing approximately 1,500 MW of new utility-scale solar, wind, and battery storage projects. This includes the 700 MW floating solar project at Poonekaryn and the 500 MW wind power project by Adani. At the same time, the CEB continues to purchase non-renewable energy at rates exceeding Rs. 45 per unit. If these renewable projects had been approved and constructed, they could have provided electricity at significantly lower costs of between Rs. 24 and Rs. 30 per kWh. This is much cheaper than the current rates for both solar and wind energy, as well as non-renewable electricity.
A few CEB engineers have recognized that the continued implementation of utility-scale RE projects poses a threat to their business interests and personal agendas. Consequently, they have resorted to delaying tactics in the approval process, effectively blocking large-scale investments and foreign investors interested in developing renewable energy in Sri Lanka.
Some argue that assigning these large projects to local investors, who are currently struggling to secure funding due to the nation’s financial crisis, is part of the problem. To achieve the targets for clean and green energy, it is crucial to attract foreign direct investments.
The delay in these 1,500 MW RE projects results in the loss of approximately 3,200 GWh of clean and cheap energy annually. This inefficiency forces the country to spend an additional Rs. 20 billion per year on higher-cost non-renewable electricity, further burdening the economy.
The level of bureaucracy, corruption, and personal agendas within the CEB is difficult to comprehend. As members of civil society, we are committed to advocating for the establishment and expansion of renewable energy in Sri Lanka. It is essential for the future of our country’s energy security and economic stability that we overcome these obstacles and fully harness our renewable energy potential.