Cabinet clears ADB advisory support for 150 MW Kondachchi wind power project as Sri Lanka advances its renewable energy agenda with a focus on expanding clean power capacity and strengthening private sector participation in the energy sector.
Cabinet clears ADB advisory support for 150 MW Kondachchi wind power project development
The Cabinet of Ministers has approved obtaining transaction advisory services from the Asian Development Bank (ADB) to support the development of the 150 MW Kondachchi Wind Power Project. The initiative is positioned as a priority within the Government’s broader strategy to accelerate renewable energy deployment and modernise the national power infrastructure.
The proposed project will feature a 150 MW wind power facility integrated with an advanced battery energy storage system, enabling it to function as a virtual firm energy plant. This configuration is designed to ensure a more stable and reliable supply of electricity to the national grid, addressing intermittency challenges typically associated with wind power generation.
The integration of storage technology reflects evolving trends in Sri Lanka renewable energy projects, where hybrid systems are increasingly being adopted to enhance grid stability and optimise energy output. By combining wind generation with battery storage, the Kondachchi project aims to deliver consistent power while supporting the country’s transition toward a cleaner energy mix.
Under the approved arrangement, the ADB will provide end-to-end transaction advisory services throughout the project lifecycle. This includes preparing bidding documents, facilitating tender invitations and supporting the competitive procurement process leading to project award. The advisory framework is expected to ensure transparency, efficiency and adherence to international best practices in project execution.
According to Cabinet Spokesman and Minister Dr. Nalinda Jayatissa, the estimated cost of the advisory services is $ 1.2 million, which will be financed as a grant under ADB’s Technical Assistance Framework. The grant-based support reduces the financial burden on the Government while enabling access to specialised expertise in structuring large-scale energy projects.
The proposal was submitted by Energy Minister Anura Karunathilake on behalf of the National System Operator (NSO), the successor entity to the Ceylon Electricity Board (CEB). The NSO is expected to play a central role in overseeing the integration of the project into the national grid, ensuring operational efficiency and reliability.
The Kondachchi Wind Power Project is also aligned with broader wind power Sri Lanka development initiatives, as the country seeks to harness its natural wind resources to meet growing electricity demand. With rising energy consumption and increasing pressure on conventional power sources, renewable energy projects are becoming a critical component of Sri Lanka’s long-term energy security strategy.
Industry experts note that the inclusion of battery energy storage systems represents a significant advancement in the country’s renewable energy infrastructure. Such systems enable excess energy generated during peak wind conditions to be stored and dispatched when needed, thereby reducing variability and improving grid management.
The project is expected to attract private sector participation through a competitive procurement process, reinforcing the Government’s commitment to public-private partnerships in the energy sector. By leveraging private investment and expertise, Sri Lanka aims to accelerate project implementation while minimising fiscal constraints.
In recent years, the Government has placed increasing emphasis on diversifying the energy mix and reducing reliance on fossil fuels. Renewable energy projects, particularly in wind and solar, have been identified as key drivers of this transition. The Kondachchi project, with its integrated storage capability, is likely to serve as a model for future developments in the sector.
The involvement of the ADB as a transaction advisor is expected to enhance investor confidence, given the institution’s experience in supporting infrastructure projects across the region. Its role in structuring the project and ensuring a transparent bidding process is likely to attract credible international and local investors.
Furthermore, the project aligns with global trends in energy transition, where countries are increasingly investing in sustainable and resilient power systems. By adopting advanced technologies and strengthening institutional frameworks, Sri Lanka is positioning itself to meet both environmental and economic objectives.
The development of the Kondachchi Wind Power Project is also expected to contribute to reducing greenhouse gas emissions, supporting the country’s commitments to climate change mitigation. As global attention shifts toward sustainable development, such initiatives are becoming increasingly important in enhancing a country’s environmental credentials.
In this context, Cabinet clears ADB advisory support for 150 MW Kondachchi wind power project represents a strategic step toward achieving long-term energy sustainability. The combination of renewable generation, energy storage and structured advisory support provides a comprehensive approach to addressing current and future energy challenges.
As the project progresses through its development phases, the focus will remain on ensuring timely implementation, cost efficiency and operational reliability. The success of this initiative could pave the way for further investments in renewable energy infrastructure, strengthening Sri Lanka’s position in the regional energy landscape.