Renewable Energy Goals in Jeopardy Amid Economic Woes
Sri Lanka’s once-ambitious renewable energy (RE) drive is facing a critical setback as the Government’s abrupt curtailment of rooftop solar power casts serious doubt over its 2030 target of generating 70% of electricity from renewable sources.
The Ceylon Electricity Board (CEB) has justified the move by citing reduced electricity demand triggered by the ongoing economic downturn. However, critics argue that the real issue lies in poor planning and a lack of investment in critical energy infrastructure, like storage systems and grid upgrades. The move to halt new solar expansion has effectively thrown the nation’s green energy ambitions into uncertainty.
Short-Term Thinking, Long-Term Damage
While a dip in electricity demand was foreseeable amid negative economic growth, experts argue it should not have derailed long-term renewable energy strategies. Instead of fortifying the grid to accommodate fluctuating demand, authorities have opted for quick fixes that undermine years of progress.
CEB Chairman Dr. Tilak Siyambalapitiya, when questioned about the curtailment, pointed to the sharp drop in holiday electricity demand as evidence, noting the New Year’s Day demand was only 1,980 MW compared to normal peaks of around 2,657 MW. Meanwhile, Energy Ministry Secretary Prof. Udayanga Hemapala confirmed that a compensation plan for affected solar developers was under discussion, though details remain unclear.
Developers Sound the Alarm
The rooftop solar industry has been vocal in its criticism, accusing the CEB of dragging its feet on investing in energy storage solutions. According to developers, the warning signs were visible for years, but no significant action was taken until a nationwide blackout highlighted the system’s fragility.
The consequences for developers have been devastating. Many who had invested heavily, often through bank loans, are now unable to meet their financial obligations because solar systems are being switched off, especially during public holidays. Power Purchase Agreements (PPAs) do not contain clauses for such disruptions, leaving developers exposed to heavy losses without clear paths to compensation.
Solar Power Struggles to Stay Afloat
Solar Industries Association (SIA) President Kushan Jayasuriya explained how the curtailments, which initially targeted larger rooftop plants, have now been extended to smaller systems as well. While daytime demand has dropped significantly, Jayasuriya pointed out that strategic measures — like switching off coal plants and promoting battery storage — could have mitigated the impact.
Despite the critical role solar energy plays in reducing costs and ensuring sustainability, the sector is left absorbing financial hits without the protections typically afforded to diesel-based plants, which receive capacity payments even when idle.
“The problem is that we are contributing low-cost energy to the national grid, but when the system fails, we’re the first to be penalized,” Jayasuriya said. “Without serious investment in infrastructure and energy storage, Sri Lanka’s renewable energy future will remain a dream deferred.”