Features
Long-term generation expansion plan – Legal barrier against implementing the Electricity Act
By Dr. Janaka Ratnasiri and Eng. Parakrama Jayasinghe
A retired Professor of Electrical Engineering has claimed that “the CEB’s long-term generation expansion (LTGE) plan is the best strategy for this country to follow at this time, which is revised once or twice a year” in a write up appearing in The Island of 03.09.2020. Obviously, the learned Professor does not seem to be familiar with the CEB plan because it is not revised once or twice a year but only once in two or three years. Nor has he studied the proposals made by the CEB in relation to the current developments in the energy sector worldwide. The LTGE Plan has some importance for Sri Lanka because compliance with it has been made mandatory for capacity addition both in the Act as well as in the Power Ministry mandate.
SRI LANKA ELECTRICITY (AMENDMENT) ACT NO. 31 OF 2013
This Act, which is an amendment to the Sri Lanka Electricity Act No. 20 of 2009, governs the addition of any new power plants or expansion of existing power plants in Sri Lanka. This amendment to the Act requires that such addition of generation capacity needs to comply with the CEB’s LTGE Plan which has received the prior approval of the Public Utilities Commission of Sri Lanka (PUCSL). There are six instances in the Act where reference has been made to the CEB’s LTGE Plan making it mandatory that any new capacity addition or expansion has to meet the requirements specified in the CEB Plan.
Some extracts of sections of the Act where reference has been made to the LTGE Plan are given below.
“A transmission licensee shall, based on the future demand forecast as specified in the Least Cost Long Term Generation Expansion Plan prepared by such licensee and as amended after considering the submissions of the distribution and generation licensees and approved by the Commission, submit proposals to proceed with the procuring of any new generation plant or for the expansion of the generation capacity of an existing plant, to the Commission for its written approval”.
“Upon obtaining the approval of the Commission under subsection (2), the transmission licensee shall in accordance with the conditions of its transmission licence and in compliance with any rules that may be made by the Commission relating to procurement, call for tenders by notice published in the Gazette, to develop a new generation plant or to expand the generation capacity of an existing generation plant, as the case may be, as shall be specified in the notice”
“Upon the close of the tender, the transmission licensee shall through a properly constituted tender board, recommend to the Commission for its approval, the person who is best capable of meeting the requirements of the Least Cost Long Term Generation Expansion Plan of the transmission licensee duly approved by the Commission”, among others.
“The Commission shall be required on receipt of any recommendations of the transmission licensee, to grant its approval at its earliest convenience, where the Commission is satisfied that the recommended price for the purchase of electrical energy or electricity generating capacity meets the principle of least cost and the requirements of the Least Cost Long Term Generation Expansion Plan and that the terms and conditions of such purchase is within the accepted technical and economical parameters of the transmission licensee”.
“For the purpose of this section- “Least Cost Long Term Generation Expansion Plan” means a plan prepared by the transmission licensee and amended and approved by the Commission on the basis of the submissions made by the licensees and published by the Commission, indicating the future electricity generating capacity requirements determined on the basis of least economic cost and meeting the technical and reliability requirements of the electricity network of Sri Lanka which is duly approved by the Commission and published in the Gazette from time to time”.
MINISTRY OF POWER MANDATE
The recently established Ministry of Power has stipulated as a key mandate of the Power Ministry the following:
Meeting the electricity needs of all urban and rural communities based on the long-term generation expansion (LTGE) plan prepared by the Ceylon Electricity Board (CEB).
Among the special priority areas identified for the Power Ministry is the Implementation of the long-term generation expansion plan.
LONG-TERM GENERATION
EXPANSION PLAN
Since the Electricity Act as well as the Ministry of Power mandate require that the generation capacity addition needs to be carried out meeting the requirements of the LTGE Plan, it is necessary to examine closely what this plan is. The CEB prepares a long-term generation expansion (LTGE) plan once in two or three years outlining the least cost options of generation plants that need to be added to the system annually for the next 20 years to meet the forecasted demand. The latest plan is in respect of the period 2020 – 2039 but it is still in the draft form yet to be approved by the PUCSL as required by the Sri Lanka Electricity Act No. 31 of 2013. As such the LTGP in effect is the 2018-2037 plan which has received the written approval of the PUCSL.
Being a rolling plan updated once in two or three years, the types and capacities to be added in a given period keeps changing with the plan. Hence, a potential developer is at a loss to know which plan to follow in planning a future power plant development project. This becomes clear when the capacities recommended to be added in the three recent plans covering the periods 2015-34, 2018-37 and 2020-39 (Draft) given in Table 1 are examined. For simplicity, only the additions of large thermal power plant capacities are included in the Table.
It is seen that the 2015-34 Plan has included only coal power plants amounting to 3,200 MW up to 2034. The 2018-37 Plan, on the other hand, has included addition of 2,700 MW of coal power plants together with 1,500 MW of natural gas (NG) power plants, up to 2036. Whereas the 2020-39 Plan (Draft) has included addition of 2,100 MW of coal power plants together with 3,000 MW of NG power plants up to 2039. When the capital cost of power plants and fuel costs keep varying year to year, it is impossible to forecast accurately 20 years earlier what the cheaper option would be in 20 years hence.
ISSUES IN IMPLEMENTING
THE CEB PLAN
If the CEB Plan was implemented in 2016, by 2025, coal power of capacity 1,400 MW, including the proposed coal power plant at Sampur, needs to be built according to 2015-34 Plan. However, according to the 2018-37 Plan, 3×300 MW of coal power plants, together with 2×300 NG power plants, need to be built by 2025. On the other hand, according to the 2020-39 draft Plan, 3×300 MW of coal power plants together with 4×300 MW of NG power plants need to be built by 2025. When a plan keeps changing in this manner with so much divergent recommendations, it cannot be called a long-term plan. There is no unique recommendation for a given period for an investor to pursue. If the 2015-34 Plan decided that coal power plants are the cheap option up to 2025, how is that the 2018-37 Plan decided that NG power plants are the cheaper option for this period? This shows the weakness of the planning methodology.
If an investor wishes to build a power plant in 2015, he is required to follow the capacity additions as specified in the 2015-34 Plan and will decide to build a coal power plant. After spending the first two years on the preliminaries such as feasibility studies and environment impact studies, he finds that an updated 2018-37 Plan released in 2018 recommends NG power plants, instead. Is he then required to change his plans and start building a NG power plant instead? In view of environmental consideration, a NG power plant is always preferred to a coal power plant. It should be noted that a 300 MW coal plant will generate about 100,000 t of ash annually which is an environmental hazard.
There is also an ambiguity in applying the condition laid down in the Act that the capacity additions shall meet the requirements of the LTGE Plan. The Act does not specify whether the Plan to be applied is what is in force at the time of commencing the power plant project or what is in force at the time of commissioning the power plant. Within a matter of four to five years’ time taken to build a coal power plant, the requirements in the Plan could change widely during this period. Hence, it is essential that this be clearly specified or this condition removed altogether enabling implementation of the Act without leaving room for it to be questioned in a court of law.
DISPUTE BETWEEN THE REGULATOR AND THE LICENSEE
The Electricity Act requires that the LTGE Plan prepared by the CEB shall be approved by the regulator, PUCSL. However, the approval of the Plan for 2018-37 ran into a problem when the original draft submitted by the CEB was not approved by the PUCSL who in turn proposed an alternative Plan which was not accepted by the CEB. This dispute went dragging for over a year and settled only after the intervention of the President. Even in the case of the current draft for 2020-39, the CEB had submitted it to the PUCSL for approval last year, and is still awaiting approval. Possibly, the PUCSL may want the Plan to fall in line with the Government policy of giving priority for renewable energy sources as described in the writer’s article appearing in the The Island of 25th and 26th September.
This dispute was brought to stark reality in respect of the CEB plan 2018-2037 both by the evaluations of the PUCSL and in the submissions made during the public hearings. The blatant errors and misrepresentation sin the draft submitted by the CEB which was obviously done to force the adoption of further coal power plants ignoring the world wide rejections can be seen in the submissions made to the PUCSL during the public hearings and is available in the PUCSL web page ().
Accordingly, an amended LTGP was formally issued by the PUCSL which should be considered as the LTGP in force until such time a new plan is approved after going through the processes including the public hearings as done in the case of the 2018-2037 LTGP. The fact that the CEB refused to accept this plan and the fact that the Government decided to force the PUCSL to issue an approval for the flawed plan submitted by the CEB makes a mockery of the entire process and the role of the PUCSL as the regulator of the Electricity Sector. As such, it does not make sense to incorporate such a flawed variant plan as mandatory for capacity addition in the Act as well as in the Ministry mandate and to describe it as the best strategy. As a matter of fact, it is the worst strategy for power sector development in the country.
AMENDMENT TO THE ELECTRICITY ACT AND MINISTRY MANDATE
To get over the problem of the Act and the Ministry mandate not being able to meet the requirements of the LTGE Plan in view of the uncertainty of the technologies which the Plan recommends for different time periods, it is necessary to amend these two documents. The first reference to the LTGE Plan in the Electricity Act described previously says that procurement of generation capacity shall be based on “the future demand forecast as specified in the Least Cost Long Term Generation Expansion Plan”. This is in order because there is little variation in the demand for a given year between different Plans.
The rest of the references say that future capacity additions shall meet the requirements of the LTGE Plan. Since the requirements include the technology whether a coal plant or a NG plant should be installed and this changes from Plan to Plan causing the uncertainty in implementing the provisions in the Act or the Ministry mandate, it is best if these sections are amended. It is proposed that the words “meet the requirements of the LTGE Plan” appearing in the Act be amended to read “meet the demand forecasted in the LTGE Plan”, wherever the term “requirements” appear.
The Act says that “Upon obtaining the approval of the Commission the transmission licensee shall in accordance with the conditions of its transmission licence and in compliance with any rules that may be made by the Commission relating to procurement, call for tenders by notice published in the Gazette, to develop a new generation plant or to expand the generation capacity of an existing generation plant, as the case may be, as shall be specified in the notice”. Hence, it is logical to keep the fuel option open when calling tenders at the time capacity addition is required giving sufficient time for the procurement process and construction of the plant. The bids received would show which fuel option is the cheaper.
It is important to issue a set of specification with respect to performance and emissions which should be met by the plant offered. The tender should also be required to specify the levelized cost of generation including the amortized annual cost of the plant, cost of operation and maintenance and the fuel cost for generating a unit of electricity giving a formula to work out the fuel cost depending on its price in the international market. The price should also include the cost of externalties. It will be then possible to select the best and cheaper option, whether coal or gas, meeting the specifications.
It should also be noted that the Electricity Act has interpreted “least cost of generation” to mean “least economic cost of generation”. Economic cost should include the cost of damage to the environment due to emission of fly ash as well as from accumulation of about 100,000 tonnes of bottom ash annually from a 300 MW coal plant. It should also include the cost of health damage to people exposed to gaseous emissions and release of toxic substances from the plant. The current plans do not include these and if they are included, all the coal plants included in CEB’s LTGE Plans need to be changed to NG power plants as such plants do not cause emission of toxic gases or other substances.
CONCLUSION
Though the Electricity Act and the Ministry mandate stipulate that capacity additions be carried out to meet the requirements of the CEB’s LTGE Plan, practically it is not possible to follow this in view of the fact that the type of plants to be added keep changing with the Plan. It is therefore proposed that the Act as well as the Ministry mandate be amended suitably. It is also proposed that the type of plant be selected after calling tenders keeping the fuel option open a few years ahead when the capacity addition is required and not 20 s years beforehand.
It is important to recognize that the basic purpose of the LTGP is to ensure the long-term energy security of the country using means and technologies that enables realization of the least economic cost of generation, which should include the cost of externalities. As such, unless a firm binding feed in tariff over the life of the plant cannot be guaranteed via suitable tender procedure accepting the above premise, making any long term plans using numbers such as parity rate and price of coal or gas is a futile exercise.
Furthermore, the changes occurring in the energy sector practically every day which helps to realize the above objectives must constantly be factored in to the planning process. Thus, the CEB plans available currently certainly comprise the worst strategy to follow in developing the power sector in the country, as they completely ignore the very progressive advances made the world over which are of great benefit to Sri Lanka.
Features
Approach to constitutional reform
The S.J.V. Chelvanayakam KC Memorial Lecture delivered on 26 April, at Jaffna Central College, by Professor G.L. Peiris, an academic with outstanding credentials, was published, under the title, “Federalism and paths to constitutional reform,” in The Island of 27 April, 2026.
In Part II of the publication, titled “Advocacy of Federalism: Origins and Context,” Professor Peiris states: “At the core of political convictions he held sacrosanct was his unremitting commitment to federalism…”. Contrary to popular belief, however, federalism in our country had its origins in issues which were not connected with ethnicity. At the inception, this had to do with aspirations, not of the Tamils but of the Kandyan Sinhalese. The Kandyan National Assembly, in its representations to the Donoughmore Commission in 1927, declared: “Ours is not a communal claim or a claim for the aggrandizement of a few. It is the claim of a nation to live its own life and realise its own destiny”.
Commenting on S.W.R.D. Bandaranaike’s views, Professor Peiris states: “Soon after his return from Oxford, as a prominent member of the Ceylon National Congress, was an advocate of federalism. He went so far as to characterise federalism as ‘the only solution to our political problems”.
THE COMMON THREAD
The thread that is common to the sources cited above is that while their focus was on the political framework, there is not even a hint as to the territorial units to which the political framework of federalism is to apply. With time the Tamil “nation” claimed that their federal State was to be the Northern and Eastern Provinces of Sri Lanka. However, the Kandyan “nation” was silent on this issue. Since Britain annexed the Kandyan Kingdom and the unified, then Ceylon in 1815, for all intents and purposes it would be reasonable to assume that the claim of the Kandyan “nation” was to be the region under the last Kandyan King, leaving the Western and Southern coastal regions for the Rest of the “nation”.
Sri Lanka, while being a colony under the British, was not interested in political frameworks. Instead, the British were interested in structural arrangements that facilitated Administration. It is evident from the evolutionary processes explored by the British that subdivided units of a State are critical not only for effective Administration but also for the political framework that ensures political stability. Federalism, advocated by the Tamil and Kandyan Leaderships for territorial units, as claimed by them, would inevitably lead to political instability. The lesson to be learnt is not to start with political frameworks, such as Federalism, but to first decide on the territorial units, within which a State functions, to ensure stability, and then frame political aspirations of the People belonging to such a State, in order to ensure political and structural stability.
LESSONS of HISTORY
Material from an article, dated 16 June, 2016
“When the British took control of the Dutch possessions in former Sri Lanka, in 1796, the Kandyan Kingdom was independent and separate from the Maritime region. The Kandyan Kingdom consisted of the “central highlands with the eastern and southeastern coastal strips”. It was after ceding of the Kingdom, at the Kandyan Convention of 1815, and after the rebellion of 1817-1818, that the two regions were merged. However, despite the merger, the administration of the two regions remained divorced from each other, with the Kandyan region being divided into 11 Districts, and the Maritime region into five, creating a total of 16 Districts for the administration of the whole country (Sir Charles Collins, Public Administration of Ceylon, 1951, p. 49).
“The above arrangements continued until the recommendations of the Colebrook – Cameron Commission. In 1832, the recommendations of the Commission were accepted , “… and the separate administrative system for the Kandyan provinces was abolished and amalgamated with the territories on the littoral acquired from the V.O.C. in a single unified administration structure for the whole island. The existing provincial boundaries within the two administrative divisions – the Kandyan and maritime provinces – were redrawn, and a new set of five provincial units, of which only one – the Central Province – was Kandyan pure and simple, was established. The new provincial boundaries cut across the traditional divisions and placed many Kandyan regions under the administrative control of the old maritime provinces” (K.M.de Silva, A History of Sri Lanka, 1981, p. 263), continued until as late as 1889, resulting in nine Provinces for the sole purpose of facilitating the Colonial administration. In point of fact, the Province never functioned as the administrative unit. Instead, the administrative unit was essentially the District, and the situation has remained so throughout the Colonial period and into this day. According to Sir Charles Collins cited above: “Most provinces were divided into districts, each Government Agent having charge of his own district, with general supervision over the whole province. The districts not in the direct charge of Government Agents were under the control of assistant Government Agents”. (Ibid, p. 62.)
PRIORITISING POLITICS OVER STABILITY
The lesson learnt by the British was that if a Colony is to be Administered effectively, the Colonizer had to choose the most appropriate unit of administration. Similarly, to an Independent Sovereign State, Territorial Stability should be its foremost priority. This means deciding on the most structurally secure territorial unit within which political power sharing should operate and not prioritise political frameworks, such as Federalism, at the expense of the structural stability of the State. Political instability would have been inevitable had Sri Lanka succumbed to pressures from the Tamil and Kandyan Leaderships.
Although Britain was not concerned with territorial stability, they recognised that the District was the most effective unit for effective administration. In fact, the 1977 Constitution describes the Territory of Sri Lanka in terms of Administrative Districts. Despite this, it was the Indo-Lanka Accord that first recognised the Northern and Eastern Provinces as political units. Following this, the 13th Amendment of 1987 extended this recognition to all Provinces.
The adoption of the Province as the political unit may not have had an impact on the territorial integrity of the Sri Lanka State, except for the Northern and Eastern Provinces, judging from the events that followed over three-plus brutal decades. The transformation of the territory of Sri Lanka, from Administrative Districts to Provinces and Provincial Councils, is the direct result of prioritising politics over territorial stability. For India to be the handmaiden of this transformation is beyond comprehension because instability in Sri Lanka, in whatever form, would impact on India’s own territorial integrity. This serious blunder cannot be ignored any further for the sake of both Sri Lanka and India. It is imperative that measures are taken to engage in a course correction through Constitutional Reform.
PROPOSED CONSTITUTIONAL REFORMS
The path to Constitutional Reform should start with the territorial subdivision of the Sri Lankan State into Districts, not only to ensure the territorial integrity of the State but also to improve administrative and development efficiencies coupled with Local Government units; a lesson learnt from the British. Any political powers devolved/decentralised to Districts should be the responsibility of District Councils, elected by representatives to Local Governments within each District.
Political power at the Centre should reflect the commitment to a single Sri Lankan Nation, through an elected Legislature, with Executive Powers being shared by a President/Prime Minister, with a Cabinet made up of all communities, in the ratio represented in Parliament. An attempt to share Executive Power with all communities, in an inclusive Cabinet, has not been the practice in the past, and under the present government, as well, despite its strident calls for unity and reconciliation. Consequently, the tendency for minority communities is to seek peripheral power to the maximum extent possible.
CONCLUSION
The approach to Constitutional making has been how best to accommodate political power in the form of Federalism, first by the Kandyan “nation” and later by the Tamil “nation”. The claim by the Tamil Leadership morphed from Federalism to a Separate State resulting in tragedies of an unimaginable order, to the point of threatening the very existence of the Sri Lankan State.
The current arrangement is based on Power being devolved to Provinces, in the form of Provincial Councils, with no regard the Province, makes to the territorial durability of the Sri Lanka State. How successive Governments hope to prevent threats to territorial vulnerabilities is to curtail the operation of sensitive provisions of devolved powers. This is being disingenuous.
On the other hand, the more direct and forthright approach to Constitutional Reform is to make the District the unit of peripheral power in order to ensure territorial stability and effective peripheral development and share Executive Power with communities in the ratio of their representation in the Legislature. The first could be achieved through a referendum and the second by the President/Prime Minister of any government. This approach prioritises territorial stability over political power; a change that has eluded policymakers. Therefore, it is imperative that territorial stability is given the foremost place in Constitutional Reform processes for the sake of not only Sri Lanka but also for India, for reasons of connectivity.
by Neville Ladduwahetty
Features
Time to get ready to face power
The power cuts are already here. Perhaps, even before the date predicted by the Public Utilities Commision of Sri Lanka (PUCSL. The peak load has gone well past the threshold they indicated as the tipping point of 3030 MW of peak load. It is now will past 3100 MW and growing, perhaps triggered by the continued heatwave making the use of air conditioners and fans more frequent and by a wider group of consumers. The government insists there is no intention of power cuts but each of us have experienced some form of power outage, without notice, at some time or other.
It is in this scenario that the Ceylon Electricty Board (CEB), or whatever it is called now, had directed all roof top solar projects, over 300 MW capacity, to shut down for the period 10th April to 20th April.
This is in addition to the curtailment of all ground mounted solar and wind projects, and even mini hydro projects, without compensation, going on for some months.
One year of inaction by CEB with the problem staring in the face
If will be recalled that the same demand was made in April, 2025, after the debacle of the countrywide blackout on 9th February, 2025, whether caused by a monkey or otherwise.
The question to be raised is what steps have been taken by the then CEB, or the Ministry to anticipate the situation this year, too, and to try and mitigate the same.
The easy answer is absolutely nothing. If at all what has been done is unilaterally prevent any further addition of Roof Top Solar PV, under the provisions of the Surya Bala Sangramaya (SBS), is, undoubtedly, the only short term and economical means to add low cost renewable electrical energy to the grid.
The architect of the SBS, the Sustainable Energy Authority is deafening by their silence, when their signature project of prime national importance has been sabotaged, and now even the performance of the already installed systems are being curtailed.
This action is totally unbelievable when the use of expensive oil-based generation will continue unabated, even during the day, when there is so much solar energy already installed. Of course, the age-old excuse will be trotted out, of the non-firm nature of Solar and Wind and problems of grid stability, etc.
Many useful and practical solutions to face the growing issue of how to integrate the essential low cost but variable resources of solar and wind to the grid as an aftermath of the blackout were discussed over a year ago.
But nothing seems to have even been attempted. The most prominent among these was the proposal to add 300 MW of grid scale batteries, as indicated in the already-approved Long Term Electricity Generation Plan ( LTEGP 2024 – 2044,) of which 100 MW should have been in use by 2026. The tender for the addition of 16 X 10 MW battery storage at selected grid substations was called over a year ago. Some expectation of sanity
It is under these circumstances that the PUCSL called for a stakeholder consultation on the 10th April, 2026, after circulating a concept note, which was well attended. It was a breath of fresh air, in view of the downhill slide of the entire electricity sector in the recent months compounded by the raging controversy of the coal scam and the rapidly increased use of expensive diesel, in addition to the other fossil fuels, just to keep up the generation to match the demand. The double whammy of the doubling of the fuel prices , exacerbated the hit on not only the consumer’s monthly bill, but the national economy and balance of payments.
Therefore, it was most encouraging to note from the PUCSL’s concept note that sanity has prevailed at last. We have been demandin–g some concrete strategies and time based targets to rid at least the electricity sector from the use of expensive, polluting fossil fuels, commencing with oil. This is the only means by which the utility could hope to achieve some degree of economic and financial viability. They have continued to burden the consumer and the country by continually jacking up the consumer tariff, while ignoring any prudent means to clean up their Act. As a matter of interest, the CEB’s own data of 2023 shows that it is possible to save some Rs 113 Billion annually by replacing all oil-based generation using renewables. The country could have saved over $ 700 Million in Foreign Exchange and the Consumer Tariff could have been lowered by Rs 7.00 per Unit across all segments of consumers.
Therefore, the PUCSL concept paper out lines, some credible measures to eliminate the use of all of forms of oil for power generation in stages. The three tier of approach, outlined as option 1 to 3, reproduced here, should be commended for adopting a pragmatic approach, with very good chance of success.
Proposed options by PUCSL
(See Options 1 Peak Shaving Approach by 2027 and Option 2: Eliminating 2.06 GWh/day of diesel-based generation)
Considering even the recent past when we achieved a status of zero oil use, as compared to the present sorry status, this is not an extremely difficult task. We will have to substitute Solar PV to bridge the gap of reduced Hydro during dry months.
(See diagram 1)
RE Contribution 69% % Oil Usage 6.2 % No Diesel
(See diagram 2)
In Contrast on 30th March RE Contribution was only -43,5%
and oil use has gone up to -29.59%
However, as outlined in the introductory paragraphs of the concept paper, the driving force to promote this change is the early declaration of appropriately worked out tariffs for installation of storage batteries and delivery of the stored energy to the grid.
With the total lack of progress of proposals in the LTEGP 2025-2044 by the state institutions, it is prudent to assume any future initiatives can only come from private sector participation.
Using the power granted by the recently ratified Electricity Act NO, 36 (As amended) the PUCSL has moved with commendable speed to develop the Feed in Tariff declarations needed to enable the achievement of the above objectives and a further stakeholder consultation was held on the 24th of April when more detailed proposals were put forward.
However, although the responsibility of publishing the tariff remains with the PUCSL, unless the National System Operator ( NSO ), tasked with the planning and implementation of Electricity Sector developments , takes urgent action to implement the desired changes as a highest priority task, nothing will be gained to help the country to get out of this quagmire.
The Consumer Continues to be Burdened.
Further, as the time table proposed by the PUCSL itself indicates, even the first of the options can be implemented only in 2027, with the others following up to the year 2030.
These are very encouraging time targets and the consumers will eagerly await their achievement.
However, the threat of power cuts, as well as continuing increase in consumer tariff to fuel the use of diesel for power generation, is real and current. A further tariff increase of 18% has been demanded by the NSO, on top of the 15% granted on 1st April, 2026.
The Immediate Options Available to Consumers.
a) The CEB now refuses to provide any grid connection for integration of any rooftop solar PV systems under the Surya Bala Sangraamaya.
b) The only way available to the consumers is to install Off grid roof top solar systems with adequate batteries to be none dependent on the grid. Use the grid only during the off peak hours.
c) During most periods of the year, even under cloudy conditions there is some solar generation. To ensure the daily consumption is more than covered by the solar input and any surplus is used to charge the battery, to the level adequate to manage the evening and peak hour demand, the capacity of the solar panels and battery have to be determined.
d) It is to be noted that although only the relatively high-end domestic consumers could find the proposed scheme financially feasible under the present cost regimes, which will improve further when the second tariff increase is announced shortly, to those consuming over 250 Units/Month, their engagement has a sector wise positive implication which is beneficial to all levels of consumers.
e) The scheme will operate in an off grid mode, without exports to the grid at any time. Therefore, they will not contribute to the often voiced worries of over voltage, instability and variability in the national grid.
f) Once the PUCSL announces the required FIT and the NSO or the Distribution Companies institutes the necessary facilities, such as smart meters, such consumers, too, can further assist the grid by export of any excess they generate.
Proposal to Avoid Power Cuts Implementable by Domestic Consumers
There are several drivers which will attract the potential ” Prosumers” to adopt this option without delay.
* The consumer tariff will continue to rise
* Even the former Roof Top Solar Systems, without batteries, does not provide power during the power cuts or blackouts
* At present day prices, the investment is financially feasible, based on the savings of the current level of monthly electricity bill. A substantial bank loan can be comfortably settled from the savings
* Now cooking with electricity is no longer a financial burden but can save one from the cost and danger of LPG shortages and queues
* What you, do based on your economic ability, will be a service to all consumers as the resultant reduction of Peak Demand means the use of Diesel can be gradually reduced and the lower end consumers, too, will benefit.
* You will enhance your green credentials with your own financial benefits.
The overall benefit to the grid and other consumers
If the element of exorbitant cost of diesel-based generation is removed then there is no need for the increase of consumer tariff for all consumers.
What is more important is that trimming the peak load would drastically reduce the need for any power shredding that is happening on the sly now and thereby benefit all consumers,
The summary of Financial Analysis illustrating the viability based on currently available data is given here. This will improve drastically if a further increase in consumer tariff is granted, which appears inevitable. (See Table 01 – The basic data used for this analysis is available on request.)
by Eng Parakrama Jayasinghe
parajayasinghe@gmail.com
Features
From Coal to Solar: China’s sunken mines power a Green Revolution: Lessons for Sri Lanka
In a striking symbol of the global energy transition, vast stretches of once-abandoned coal mines in China have been reborn, not as relics of an industrial past, but as shimmering hubs of renewable energy.
What were once scarred landscapes, destabilised by years of mining, and later submerged by landslides and floods, have now been transformed into expansive artificial lakes.
Floating atop these waters are some of the world’s largest solar power installations, quietly generating clean electricity on a massive scale.
Among the most notable are the Fuyang Floating Solar Farm and the Huainan Floating Solar Farm. Together, they represent a remarkable engineering and environmental achievement.
The Fuyang facility boasts an installed capacity of 650 megawatts, producing approximately 700 million kilowatt-hours of electricity annually. Even more impressive, the Huainan project reaches a staggering 1 gigawatt capacity, generating nearly 1.8 billion kilowatt-hours each year. Combined, these floating giants produce enough electricity to power millions of homes without burning a single lump of coal.
A former General Manager of the Ceylon Electricity Board (CEB), a veteran electrical engineer, described the development as “a glimpse into the future of energy systems.”
“What China has demonstrated is not just technological capability, but strategic foresight. Turning environmentally degraded land into clean energy assets is the kind of thinking countries like Sri Lanka must begin to adopt,” he said.
Why solar on water?
Floating solar, or “floatovoltaics,” offers a range of advantages that traditional land-based solar farms cannot easily match.
Water naturally cools solar panels, improving their efficiency by an estimated 10 to 15 percent. In hot climates, this cooling effect can significantly boost electricity generation.
Additionally, the panels reduce water evaporation, a crucial benefit in regions facing water stress. By limiting sunlight penetration, they also help suppress algae growth, improving water quality.
Perhaps, most importantly, floating solar eliminates the need for large tracts of land. In densely populated or agriculture-dependent countries, this is a game changer.
A dual economy: Fish and power
In an innovative twist, some of these floating solar farms incorporate aquaculture beneath the panels. Known as the “fisheries + solar” model, it allows communities to cultivate fish in the shaded waters below, creating a dual-income system, energy production above, food production below.
This integrated approach not only maximises resource use but also supports local livelihoods, blending sustainability with economic resilience.
Environmental dividends
The environmental benefits are substantial. The Fuyang project alone reduces carbon dioxide emissions by an estimated 580,000 tons annually, while the Huainan facility cuts emissions by around 1.6 million tons each year.
Beyond emissions, these projects reclaim landscapes once deemed unusable—areas heavily damaged by coal extraction. In doing so, they rewrite the narrative of industrial decline into one of ecological restoration and innovation.
Sri Lanka: A nation poised for floating solar For Sri Lanka, the implications are profound.
Unlike China’s abandoned coal pits, Sri Lanka possesses thousands of irrigation tanks, reservoirs, and hydropower catchments that could serve as ideal platforms for floating solar. From the ancient tank systems of the dry zone to major reservoirs like Victoria Dam and Randenigala Reservoir, the country holds untapped potential to generate clean electricity without sacrificing precious land.
The country’s reliance on thermal power, particularly during drought periods when hydropower declines—has long been a challenge. Floating solar could provide a stabilising solution, reducing dependence on costly fossil fuels while complementing existing hydroelectric infrastructure.
Energy analysts note that integrating floating solar with hydropower reservoirs can create a hybrid system: solar power during the day, hydropower balancing supply at night. This synergy enhances grid stability and reduces overall generation costs.
The former CEB official stressed the urgency:
“Sri Lanka cannot afford to delay. With rising energy demand and climate pressures, we must explore every viable renewable option. Floating solar on our reservoirs is one of the most practical and scalable solutions available.”
Challenges and the road ahead
However, experts caution that careful planning is essential. Environmental assessments, grid integration, and financing mechanisms must be properly addressed. Community engagement, especially where fisheries are involved—will also be key.
Yet the blueprint already exists.
China’s transformation of submerged coal mines into renewable energy hubs offers more than inspiration—it provides a working model. For Sri Lanka, adapting that model to its own geography could mark a decisive step toward energy independence.
China’s floating solar farms stand today as one of the clearest symbols of a world in transition—from fossil fuels to renewables, from environmental degradation to restoration.
For Sri Lanka, the message is equally clear: the future of energy may not lie on land alone—but on water, where sunlight meets innovation.
If harnessed wisely, Sri Lanka’s vast network of reservoirs could one day mirror that transformation, turning calm waters into engines of sustainable growth.
by Ifham Nizam
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