Energy sector stakeholders have identified policy consistency, regulatory reforms, improved financing mechanisms and infrastructure upgrades as key priorities for accelerating Sri Lanka’s transition to renewable energy.

The issues were discussed at a forum titled “Energy Transition in Sri Lanka: Strategic Insights from Global Markets” recently convened by the Ceylon Chamber of Commerce, bringing together representatives from government, industry, academia and the energy sector.

Participants underscored the growing importance of renewable energy in meeting the country’s rising electricity demand while reducing dependence on imported fossil fuels. Solar power was highlighted as a priority area for expansion, with stakeholders stressing the need for attractive purchase tariffs, efficient procurement mechanisms and the promotion of distributed renewable energy systems to encourage private sector investment, improve grid stability and minimise transmission losses.

The forum also examined challenges hindering the growth of renewable energy projects, including policy uncertainty, lengthy approval procedures, difficulties in land acquisition, grid limitations and delays in project implementation.

Stakeholders emphasised that a stable and predictable policy framework, streamlined regulatory processes and stronger coordination among institutions were essential to boost investor confidence and expedite project delivery.

Discussions also focused on procurement frameworks, financing mechanisms and electricity sector reforms needed to support future investments. Participants noted that net metering and feed-in tariff schemes remain important incentives for commercial and industrial consumers to adopt solar energy by allowing them to sell excess electricity to the national grid.

The need to improve access to financing, develop more bankable renewable energy projects and address financial sustainability concerns, including timely payments to developers, was also highlighted.

Energy storage systems emerged as a key topic, with participants noting their critical role in facilitating greater integration of renewable energy, enhancing grid stability and improving system flexibility. Global experiences with solar-plus-storage solutions were reviewed, alongside discussions on the need for clear technical standards, safety regulations, financing models and market structures to support the deployment of energy storage technologies in Sri Lanka.

Stakeholders further examined the broader economic implications of the energy transition, noting that electricity demand is expected to rise significantly with the growth of digitalisation, artificial intelligence, electric vehicles and data centres.

They stressed the importance of modernising Sri Lanka’s energy infrastructure through intelligent grid systems and emerging technologies to enhance the country’s long-term economic competitiveness.

Human resource development was also identified as a critical requirement, with participants calling for stronger collaboration between industry and academia, expanded technical training opportunities and the development of local expertise in renewable energy and energy storage technologies.

The forum concluded that achieving Sri Lanka’s renewable energy targets would require coordinated action across policy, regulation, financing and infrastructure development sectors.