The Asian Development Bank (ADB) has approved a $30m Small Expenditure Financing Facility (SEFF) for the Ceylon Electricity Board (CEB) to boost the sustainability of energy projects in Sri Lanka. This is Sri Lanka’s first SEFF, designed to support the operational sustainability of ADB-financed energy projects, promote initiatives to increase the share of renewable energy, and encourage private sector participation in the renewable energy sector.
The facility will fund post-completion activities of ADB-backed projects, feasibility studies for advanced renewable energy technologies, preparatory work for transmission and distribution upgrades, and capacity building in emerging technologies. Half of the $30m will be allocated to enhance the operational sustainability of the Moragolla Hydropower Plant, while the remaining will support activities aimed at facilitating renewable energy generation and grid integration.
Sri Lanka aims to develop an additional capacity of 3,867 MW of renewable energy by 2030 as part of its Nationally Determined Contributions (NDC) adding to the current installed capacity of approximately 5 gigawatts. This target is expected to be achieved through the development of various renewable energy projects, including solar, wind, and hydroelectric power plants.
The country has several renewable energy projects, including a 100 MW Wind Park in the Island of Mannar, a 100 MW Solar Park in Siyambalanduwa, Monaragala, a Wind and Solar Energy Park in Poonaryn Peninsula, and a grid-scale battery energy storage system at the transmission level.
Sri Lanka has also received international support for its renewable energy projects, including a World Bank and Global Environmental Facility (GEF) assisted program. Additionally, India has agreed to construct renewable energy systems in three islands off the Jaffna coast.
The country has potential for harnessing energy from renewable sources, including solar, wind, and hydro. Currently, Sri Lanka’s electricity demand is met by a mix of thermal power stations, large hydroelectric power stations, and wind farms.
