Sri Lanka's Renewable Energy Push: Challenges and Opportunities

Transitioning to a sustainable energy-driven economy has never been more crucial for Sri Lanka, particularly in light of escalating unrest in the Middle East and its global repercussions. DailyFT spoke with Sri Lanka Sustainable Energy Authority (SLSEA) Chairman Prof. Wijendra Bandara and Director General Harsha Wickramasinghe to discuss the country's ongoing efforts to shift towards renewable energy and greater energy efficiency. The SLSEA has a clearly defined strategic mission aligned with the national goal of achieving 70% renewable energy by 2030, including installing over 2,000 MW of solar capacity before that deadline.

Key Takeaways:

• Sri Lanka's renewable energy target of 70% by 2030 presents a more difficult challenge, with efforts so far reaching about 55% renewable energy in electricity generation by 2024.
• The SLSEA has a strategic mission to promote the renewable energy share in the country, including identifying, assessing, and developing indigenous renewable sources such as solar, wind, biomass, and hydro.
• The organization has facilitated over 1,700 MW in solar rooftop systems, and both off-grid and on-grid renewable energy projects.
• Prof. Bandara highlighted the importance of energy awareness and capacity building through initiatives such as appliance energy labeling, energy benchmarking, energy-efficient building codes, and energy audits.
• The SLSEA has introduced feed-in tariffs for projects under 10 MW and offers tax waivers for projects over 1 MW to encourage developers.
• The national grid has the potential to support increased solar power adoption, but its current limitations in capacity and flexibility restrict the integration of large-scale renewable energy sources.
• Financial constraints, worsened by the recent economic crisis, have significantly reduced public funding and made it more difficult to attract private investment.
• Regulatory approvals and inconsistent policy implementation create uncertainty for developers, hindering progress.

Statistics:

• Over 1300 MW of solar capacity is planned to be added by 2030, with the aim of achieving 70% renewable energy in electricity generation.
• The SLSEA has already facilitated over 1,700 MW in solar rooftop systems.
• By 2024, 55% renewable energy was achieved in electricity generation in Sri Lanka.
• The country has significant solar potential, with an estimated 1,450 hours of sunshine per year.

Sources:

• [DailyFT] article dated June 26 on "National Energy Day"
• [National energy policy of Sri Lanka]
• [Asia and the Pacific Energy Forum]
• [Asian Development Bank]