Solar energy battery storage Sri Lanka has taken a decisive step forward after Cabinet approval for installing large-scale battery systems at 16 substations, strengthening renewable integration and improving electricity grid reliability across the country.
Solar energy battery storage Sri Lanka rollout approved for 16 substations
Sri Lanka has moved closer to strengthening its renewable energy infrastructure with Cabinet approval granted for the award of tenders to install independent battery storage systems at 16 electrical substations nationwide. The initiative is aimed at maximising the utilisation of solar generation while enhancing grid stability and efficiency.
The approval follows the submission of a General Board Memorandum by Minister of Energy Eng. Kumara Jayakody, which outlined the growing need for battery storage solutions to address operational challenges associated with integrating renewable energy into the national grid. As solar generation expands, managing fluctuations in supply has become a key priority for system planners.
Under the government’s programme, battery systems with a capacity of 10 megawatts and 40 megawatt-hours will be installed at each selected substation. This results in a combined national capacity of 160 megawatts and 640 megawatt-hours, representing one of the largest battery storage deployments undertaken in Sri Lanka to date.
According to a statement issued by the Ministry, the tender process for the project was initially launched on 30 July 2025, with bids originally scheduled to be opened on 16 September 2025. Due to strong interest from both local and international parties, the submission deadline was extended to 14 October 2025.
The extension led to a substantial response, with 153 bids received covering the 16 substations. Officials said this level of participation reflects growing investor confidence in Sri Lanka’s renewable energy transition and the commercial viability of grid-scale battery storage projects.
Cabinet approval was formally granted on 2 January following a comprehensive evaluation process conducted by Independent Tender Committees. These committees assessed all technical, financial and site-specific requirements before making their recommendations for each substation.
The project will be implemented under a Build, Own and Operate model, in accordance with a Cabinet decision taken on 28 April 2025. Under this structure, selected developers will be responsible for financing, constructing and operating the battery systems, reducing the immediate fiscal burden on the state while accelerating deployment.
Energy sector officials said battery storage is a critical enabler for expanding solar generation, as it allows excess electricity produced during daylight hours to be stored and dispatched during periods of higher demand. This helps smooth output variability and improves the overall reliability of the electricity system.
The approved installations are expected to play a central role in addressing grid congestion and reducing curtailment of solar generation, an issue that has increasingly emerged as renewable capacity has grown. By absorbing surplus energy and releasing it when required, the systems will allow more efficient use of existing solar assets.
Beyond operational benefits, the initiative aligns with Sri Lanka’s broader policy objectives of reducing reliance on imported fuels and strengthening energy security. Increased use of domestic renewable resources is seen as a key strategy for managing long-term costs and mitigating exposure to global price volatility.
Industry analysts note that solar energy battery storage Sri Lanka initiatives of this scale also help establish regulatory and commercial frameworks for future projects. Successful implementation could pave the way for additional storage deployments supporting wind, rooftop solar and hybrid renewable systems.
The Ministry said the project marks an important milestone in the country’s clean energy transition, demonstrating a shift toward modern grid solutions that support sustainability and long-term resilience. Officials added that further renewable-supportive investments are expected as demand grows and technology costs continue to decline.
As Sri Lanka advances its renewable agenda, large-scale battery storage is likely to become an increasingly important component of the national electricity system. The newly approved projects are expected to set a benchmark for integrating solar generation more effectively while maintaining system stability.