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Power cuts are here! But we have a way out!

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The much-dreaded power cuts are already here though not declared as such. The tragedy is that the power cuts are not due to inadequate electricity supply, but the inability of the power and energy authorities to use the abundant solar and wind power installed without any financial or economic burden on the state. They ought to admit their lack of wisdom to be mindful of the rapid changes in the sector and the need to be equipped.

Fuel Prices have been increased again up to the 2022 levels. Therefore another Electricity tariff hike is inevitable. Perhaps, the government may hold it back until September, when the next tariff revision is due. An appeal has been made to “prosumers” to switch off their solar PV system in the fear of grid stability being affected. While there is excess solar power, which they are unable to manage, even when the demand is below the installed capacity and high contribution of hydro, solar and wind. May 31 (Sunday) energy mix indicated substantial use of oil in CEB-owned power plants and those belonging to the Independent Power Producers (IPPs) . What is the rationale? One would believe that even the hydro reservoir water can be saved for use during the night, without curtailing solar and wind power. It will be said that the system is very complex and beyond the understanding of mere mortals like ordinary “prosumers”, who have added over 2300 MW to the grid, entirely at their expense and at rates well below the average cost of generation. (See Image 1)

Storage Batteries and Renewable Transition

The fact that the growing need for storage batteries to optimise the utilisation of variable renewable energy (VRE) has been felt for the last decade or more, and nothing was done about it, is never mentioned in their laments.

However, there is a glimmer of hope due to the initiatives taken by the Public Utilities Commission of Sri Lanka (PUCSL). An increase in the demand due to a general GDP growth will have to be met using renewable resources. It has been clearly noted that such alternatives must be developed while curtailing the use of oil and ensuring the uninterrupted power to the consumers.

Recognising this need and the fact that fastest intervention is possible by promoting BESS (Battery Energy Storage Systems) to be added to all existing renewable energy sources, the PUCSL has initiated stakeholder consultation to determine the feed-in tariff payable for each type of BESS. A detailed methodology for determining the FIT has been circulated. The identified types of BESS discussed were as follows”

1. Power Plants

a. Mini -Hydro

b. Mini – Hydro-Local: mini hydro plants that at least use locally manufactured turbines

c. Wind

d. Wind – Local: Wind plants that at least use locally manufactured turbine blades

e. Biomass – Dendro – Biomass plants that use sustainably grown fuel wood

f. Biomass – Agricultural/Industrial Waste; Biomass fired plants use byproducts, like paddy husk, sawdust, sugar cane bagasse, etc.

g. Municipal Solid Waste

h. Waste Heat Recovery

i. Ground Mounted Solar PV

j. Floating Solar PV

2. Prosumers

a. Roof Top Solar PV

b. Rooftop Solar PV with Battery Energy Storage System (BESS)

c. Prosumers with behind the meter Battery Energy Storage System (BESS)

3. Power Plants with BESS

We mentioned in an earlier article that the PUCSL proposed a scheme whereby we can get rid of use of oil for power generation in stages, commencing with elimination of the diesel use by 2027 and all imported oils by 2030.

Stakeholder Meeting & Feed In Tariff( FIT)

The PUCSL has been empowered by the new Electricity Act No 36 (as amended), which came into full force on 09 March, 2026, with responsibility for calculating and announcing all FIT schemes, both for purchase and sale of electricity to consumers.

A well-represented stakeholder meeting was held recently, when the proposed methodology for determining the FIT of each type of BESS was given to them to provide further specific inputs. It is, therefore, realistic to expect such a FIT to be declared by the end of June, 2026.

While this is a welcome and progressive step unlike the ad hoc process adopted hitherto. But the fact remains that the responsibility for the effective use of FIT to attract investors to add the BESS at different scales, lies with the one or more of the newly appointed companies to take over the functions of the former Ceylon Electricity Board (CEB).

Government Recognition of Fossil Fuel Risks

The current government has reportedly recognised the danger of overdependence on imported fossil fuels, which we have absolutely no control over. This is something we have been stressing for a long time. However, better late than never. As a matter of interest, we show the degree of fossil fuel dependence and its adverse impact on the economy. (See Graph 1)

It is to be noted that earnings from our traditional exports of tea, rubber and coconuts fail to meet the ever-increasing cost of importing fossil fuels. Time was when earnings from these exports barely helped meet the cost of import of fuels which was back in 2010. The rupee cost of imports is shown in Billions to keep the data columns within the bounds of the chart. This is the factor which affects you and me directly.

However, we earnestly urge the government to direct the electricity companies to take immediate action to prepare the grid which costs only a fraction of the values predicted by the CEB to institute their schemes which are not in line with the ground reality to accept the BESS system once the FIT is announced. Reasonable BESS and FIT will help attract investors with the assurance of short-term and long-term improvement, at no cost to the state.

Solar PV & BESS Proposal

We proposed some time back of the opportunity for those “prosumers” using 300 units per month, for installing solar PV with adequately sized batteries, which is more economical than drawing power from the grid, and to gain the happy situation, to be insulated from the danger of power cuts and further increases in consumer tariff.

The PUCSL intervention to declare a BESS tariff will add a great impetus to those who are willing to adopt the above proposal. They will be encouraged to increase the capacity of their installations as well as the battery capacity so that the excess can be exported to the grid during peak hours, when firm economic power is most needed. Such additional features would enhance their financial returns and would enable rapid elimination of the use of diesel during peak hours. In recent months with the depreciation of the rupee, coupled with the increase of costs of solar panels, inverters and batteries, our original analysis of financial viability of this interevention was facing some uncertainties. As such, we welcome this move by the PUCSL, whereby the consumers would have a steady revenue in addition to the savings on their monthly electricity bills. It is likely that the level of FIT and the permitted number of exports will be adequate to work with the increased costs, as shown. (See Table 1)

It must be noted that the cost values are highly volatile ,and some variations are to be expected. FIT for export on energy is stated as 60% of the current peak time energy charge of Rs 106/kWh.

This revolution is well within the means of the over 200,000 potential “Prosumers” who consume over 250 units per month. While they would fulfil their own goal of being immune to any power cuts as well as being insulated from future tariff increases, they would be serving the country by progressively eliminating the need for any fossil fuels for power generation. For example, if 50,000 of them add 10 kWh of battery capacity, the peak power demand can be reduced by 500 MW, thereby obviating the need for using the most expensive diesel during the peak period. Very special advantages can be derived by those also purchasing EVs instead of petrol and diesel vehicles. It will be possible to save on LPG, which costs Rs 4,700.00 per cylinder at present. Thus, the excuse for demanding ever increasing consumer tariff in the future will not be available. As such this move would help all consumers down to the lowest level of consumers.

It is hoped that the energy authorities recognise this reality and support the PUCSL proposals by approving the BESS FIT system and directing all Utility companies to adopt the same and urgently initiate action to install the simple infrastructure additions to accept the BESS energy, as proposed. If they care to review this proposal having discarded biases and any other agendas, they, too, will benefit.

Conclusion

The inescapable conclusion one can derive from the above is that the solution to the crisis is available from the consumers themselves in a manner that is attractive and profitabe to them. It would also be of major assistance for the Utility to manage the sector effectively and efficiently. In addition, all consumers will benefit by gradually weaning themselves away from the grid an use of oil for power generation. This would obviate any more demands for consumer tariff increases by the National System Operator. The PUCSL has taken an essential first step with its intention to declare a BESS FIT. It is up to the government to ensure that the Ministry and the Utility companies adopt the correct stance and make a commitment to ensure the success of this scheme as soon as possible.

by Eng Parakrama Jayasinghe
Past President and Council Member
Bio Energy Association of Sri Lanka



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Trump’s tariffs, AKD’s gazette and Sri Lanka’s diplomatic slumber

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“We are rather respectable in Colombo. We go to bed fairly early, and we remain there till morning. “

According to Sri Lanka’s diplomatic folklore, the late S.W. R. D. Bandaranaike uttered these words while explaining the reasons for Sri Lanka’s abstention on the UN resolution condemning the Soviet invasion of Hungary. Apparently, SWRD’s foreign ministry officials were asleep at home when the diplomatic cable seeking instructions was received from New York. In those days, there were no cell phones, Internet, or even fax or telex machines. The diplomatic cables were sent through post offices. Decoding them was a slow and time-consuming process. Thus, the government could not provide appropriate instructions to our mission in New York in time, and the Sri Lankan delegation abstained on that sensitive UN vote.

Sri Lanka’s Absence from Section 301 Consultations

But then, how does one explain Sri Lanka’s absence from the crucial bilateral consultation held in Washington by the Office of the United States Trade Representative (USTR) during March-April on “Forced Labour” under the Section 301 of the US Trade Act of 1974? Didn’t our foreign and trade ministries send appropriate instructions to Washington in time? Even if the instructions from the foreign ministry were transmitted to our embassy in Washington by pigeon carriers, there was enough time for Sri Lanka to participate in those meetings.

In March, the USTR initiated these 301 investigations on 60 trading partners, and invited all of them for confidential consultations. Out of the 60, 46 participated in these consultations. Sri Lanka was not one of them. Other countries that didn’t participate in these consultations included China, Russia, and Venezuela! In addition to that, the Section 301 Committee conducted a public hearing with interested parties on April 28 and 29. Washington-based diplomats, representatives from few trade ministries as well as representatives from many foreign trade associations and chambers participated in these hearings. Sri Lanka was once again conspicuously absent.

As a result, when the USTR published the proposed forced labour tariffs on June 2nd, Sri Lanka ended up with a 12.5% duty. Pakistani and Indonesian diplomats participated in these consultations and took appropriate follow-up measures, and managed to enter the 10% duty category. As even a threat of a modest tariff hike could disrupt supply chains and reduce competitiveness, particularly in an industry such as garments, I discussed this issue on 15 June and underscored the importance of Sri Lanka’s participation at the next hearing, which was scheduled to be held from July 7th .

Awakening from Diplomatic Slumber and AKD’s Gazette

Fortunately, Sri Lanka finally awoke from weeks of diplomatic slumber, and Ambassador Mahinda Samarasinghe participated in the public hearing on 9 July, and promised, “…. · We have agreed to the text in our negotiations with the USTR on forced labour, …. The gazette as we speak is being printed and I’m getting the gazette tomorrow morning, and the gazette will be shared with USTR as I get it“.

As promised, President Anura Kumara Dissanayake issued a gazette on 10 July banning the imports of goods produced by forced labour. These new regulations are very similar to what Pakistan and Indonesia enacted in April, after their consultations with USTR in March. Why couldn’t we do it in April? Why did we wait till the very last minute?

Challenges ahead

“War is too important to be left to generals alone,” is a famous saying attributed to former French Premier Georges Clemenceau. Similarly, monitoring our main markets is too important to be left to diplomats alone. The United States is the largest single-country market for Sri Lanka. Therefore, Sri Lankan trade chambers and associations should become more proactive in these markets and participate in these events. For example, the chairman of the Pakistani apparel exporters association participated in the April hearings. Similarly, representatives from the Indian Agricultural and Processed Food Products Export Development Authority, the Federation of Indian Chambers of Commerce and Industry, the Confederation of Indian Industry, and Reliance Industries also participated in July hearings. At an event where each speaker is given only five minutes (strictly enforced), having a number of speakers from a country is an advantage. The presence of industry representatives in these kinds of events also help them understand the market dynamics and the future challenges. This is important, particularly because there will be many more challenges with Trump’s tariffs.

With the gazette issued on 10 July, Sri Lanka has imposed a prohibition on the importation of goods produced with forced labour. Now, the challenge will be to effectively enforce the prohibition. And what are the goods produced with forced labour? The USTR list only focuses on aluminum, cotton, electronics, lithium-ion batteries, rice, and tobacco. However, according to the U.S. Department of Labour, the list is much longer. Hence, this list may change continuously during the next two years and tariffs may fluctuate once again.

So, this is definitely not the time to slumber.

(The writer, a retired public servant, can be reached at senadhiragomi@gmail.com)

by Gomi Senadhira ✍️

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Tales of Mystery and Suspense 10 Casino for Sale

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After the overwhelming grotesquerie of J K Rowling’s latest Cormoran Strike novel (written, I should have noted, as the others were, under the pseudonym Robert Galbraith), I thought I should return to the world of fun, and also a much shorter description since this thriller moves quickly without the layers of detail that Rowling engages in.

I then move to the second comic thriller by Caryl Brahms and S J Simon. This, their second story to feature Vladimir Stroganoff and Adam Quill, was Casino for Sale, as lunatic a romp as the first, though without the emphasis on the ballet that characterized A Bullet in the Ballet.

This one begins with the impresario Stroganoff buying a casino cheap from Baron Sam de Rabinovich, only to find that it was a rundown place, not the grand casino of La Bazouche, a resort on the Frenc+h Riviera, as he had initially thought. The grand one belonged to Lord Buttonhooke, and Stroganoff could  not compete, until he thought of bringing the Ballet Stroganoff to the casino – which of course leads to Buttonhooke deciding to have ballet performances in his Casino too.

Stroganoff invites Quill to visit him, which Quill decides to do since he has left Scotland Yard, having come into a legacy. No one believes this, and he has to face questions as to what he did to have been sacked, with sympathy for having been found out.

Caryl and Simon

The day he arrives in La Bazouche there is a murder, of a vitriolic critic called Citrolo, in Stroganoff’s office. He had been going to write a damning review of the opening night of the ballet and Stroganoff, when he realizes Citrolo cannot be swayed, drugs him and dictates the review himself to the papers. He leaves Citrolo sleeping and finds him shot the next morning, whereupon he decides to muddy the waters and leave a suicide note and lots of other murder weapons. So much overkill, as it were, of course ensures that he is arrested.

But the excitable French detective who makes the arrest follows up his suggestion that Buttonhooke was also involved, and so the two casino owners find themselves in cells next door to each other, with the detective Gustave quite happy to provide creature comforts for a fee.

Quill decides he must investigate, and finds Gustave most cooperative, since he has a laid back attitude to work. So it is Quill that finds a notebook which makes it clear Citrolo is an accomplished blackmailer, and that there are lots of possible murderers, including Stroganoff’s croupier, who was crooked, Rabinovich, who was now working for Buttonhooke, a confidence trickster called Kurt Kukumber, whose prospectus for a dud gold mine was found in the office and Prince Alexis Artishok who was engaged in a deal to buy diamonds from the ballerina Dyra Dyrakova.

Stroganoff had been trying to get Dyrakova to dance for him, but having done so previously she had refused. But then to Stroganoff’s chagrin she agreed to dance for Buttonhooke. The clearly crooked Artishok had told Buttonhooke’s mistress Sadie Souse, who was not very bright, that Dyrakova possessed diamonds she was willing to sell cheap, and Sadie was determined to have them.

Quill meanwhile finds out that there was a secret passage to Stroganoff’s office, the obvious solution to what had begun as a locked room mystery, and that this was known by almost everyone apart from Stroganoff himself. And then Rabinovich is murdered, just after Gustave had released his two original suspects, leading him to blame Quill for having insisted on that and thus allowing them to kill again.

Soon afterwards Dyrakova arrives, and the town is full of posters announcing that she will appear in the casinos, elaborate posters for either one, since Stroganoff is determined that she will dance for him, and if she does not come willingly, he has devised a scheme to make her do so unwillingly. So, though Buttonhooke has her taken off to his yacht immediately she arrives at the station, Quill along with Arenskaya gets her into a launch and to Stroganoff’s casino, where she performs to tumultuous applause, not knowing for whom she is dancing.

When Quill asked her about the diamonds, she said she had sold them long ago, and that gave Quill the solution to the mystery. Rabinovich had known about this, and Artishok had killed him to prevent Sadie learning it from him, he had killed Citrolo who had recognized him for an accomplished card sharper, not a Russian prince at all. But before he is arrested, he gets away in a boat, and the police launch that pursues him is on the point of catching him up when it runs out of petrol.

Again, lots of excitement, and entertaining references  – Gustave grows marrows – and if not quite as brilliant as its predecessor, Casino was certainly a delightful read.

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The challenge of being positive about SAARC

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The RCSS forum addressed by SAARC Secretary General Ambassador Md. Golam Sarwar in progress. (Pic courtesy RCSS)

It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.

Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.

However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?

There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.

The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.

Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.

Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.

The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.

On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.

In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.

Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.

Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.

The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.

These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.

Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.

There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.

However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.

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