Sri Lanka wind power projects have reached a milestone as the Ceylon Electricity Board (CEB) received record-low bids under 4 US cents per kilowatt-hour for new installations in the Mannar region. The move signals growing competition in the nation’s renewable energy market.
Sri Lanka wind power project sees offers below 4 US cents per unit
Sri Lanka’s renewable energy ambitions gained new momentum this week with the Ceylon Electricity Board (CEB) receiving unprecedentedly low bids for the development of large-scale wind power projects in the country’s northwestern Mannar region. Industry sources confirm that the offers came in below 4 US cents per kilowatt-hour, underscoring both investor interest and the increasing cost-efficiency of renewable generation technologies.
The bids were submitted for a proposed 100 megawatts (MW) of wind capacity, split across two 50 MW projects, located in Mullikulam, a coastal area in Mannar known for its exceptional wind potential. According to sources familiar with the tender process, Vidullanka PLC submitted the lowest bid at 3.77 US cents per kilowatt-hour, closely followed by Windforce PLC at 3.96 cents. Other notable contenders included Hayleys, Lakdhanavi, Metrocorp, ACL Cables, and Aitken Spence, with bid prices ranging from 4.17 to 4.80 cents.
This latest round of competitive bidding marks a sharp improvement compared to previous projects in the same region. The last Mannar wind power plant was awarded at 4.65 US cents per kilowatt-hour, highlighting a clear downward trend in generation costs. The new bids reflect a combination of stronger investor confidence, better technology, and improved resource utilization within Sri Lanka’s growing renewable energy landscape.
At the current exchange rate, the lowest bid of 3.77 cents translates to roughly 11.50 Sri Lankan rupees per unit, signaling one of the most cost-effective renewable energy proposals the island has ever seen. If awarded, the project could significantly reduce the country’s reliance on expensive fossil-fuel imports and ease pressure on the national grid.
Experts note that Mullikulam’s strong and consistent wind conditions have made it one of the most promising locations for renewable development in Sri Lanka. With higher plant factors than most inland sites, the region offers ideal conditions for sustainable power generation. The results of the tender further demonstrate how strategic site selection can enhance output efficiency while lowering production costs.
However, the tender also reveals underlying challenges in Sri Lanka’s energy investment environment. Despite the highly competitive pricing, industry participants indicate that many large investors remain hesitant to submit bids denominated in Sri Lankan rupees. This reluctance stems from what they describe as the unpredictable operating framework of the central bank, which has contributed to periodic currency depreciation. As a result, most developers prefer to peg their financial commitments to stable foreign currencies like the US dollar to minimize exchange rate risk.
Sri Lanka’s energy policy currently emphasizes expanding renewable generation while reducing overall electricity costs through competitive bidding. The government’s broader energy transition strategy envisions a significant shift toward wind, solar, and other renewable sources to meet future demand sustainably. These policy shifts aim to cut import dependency and mitigate the fiscal burden caused by fuel-based electricity generation.
Wind energy, in particular, has been identified as a cornerstone of this transformation. The country’s northern and northwestern coastal belts, including Mannar and Puttalam, possess some of the highest wind speeds in South Asia. Combined with international financing and technical partnerships, these conditions have enabled Sri Lanka to pursue utility-scale wind projects capable of producing clean, affordable electricity.
Industry analysts believe that if these latest bids are approved, they could set a new benchmark for renewable energy pricing in Sri Lanka and the wider region. Competitive rates at or below 4 US cents per unit would make wind energy one of the most economical sources of electricity in the national grid. The outcome may also encourage more private developers to participate in future tenders, helping the country reach its target of generating 70% of its power from renewable sources by 2030.
For now, the focus remains on finalizing evaluations and awarding contracts to qualified bidders. If completed successfully, the Mullikulam wind projects could represent a landmark achievement in Sri Lanka’s clean energy journey — blending affordability, sustainability, and technological innovation to meet growing power demands.