Solar Power Purchase Agreement Sri Lanka

CEB support for the development of the mini-hydropower sector In September 2019, Mercom reported that sri Lanka`s Sustainable Energy Authority had issued two expressions of interest for foreign companies and companies to develop solar projects with a capacity of 10 MW and 20% energy storage systems. The Bidder will design, construct, test and commission, operate and commission the power transmission lines at the 33 kV voltage level, including all associated devices, to the end point. Key to Success Long-Term Concessional Financing by the RERED Project As part of the government`s commitment to accelerate the development of renewable energy production and integrate the use of unconventional renewable energy in the energy sector, GOSL approved the World Bank/Global Environment Facility (GEF) Joint Project on Renewable Energy for Rural Economic Development (RERED). Through the RERED project, GOSL aims to promote rural economic development and improve the quality of life in rural areas through access to electricity and increase financial support for low-cost mini-hydropower projects. The RERED project is managed by the Ministry of Finance and Planning. The implementation, coordination and management of projects is the responsibility of the administrative unit set up within DFCC Bank. The Sri Lankan government`s policy guidance for the energy sector foresees that the country`s hydropower potential will be fully exploited, as it is currently the main local resource for electricity generation. As part of this policy, all large hydropower plants must remain under state control for the foreseeable future. Private sector financing will be used to generate electricity from small hydropower plants. The government has identified the development of renewable energy projects as a policy issue aimed at diversifying the electricity sector from expensive thermal power generation. This is why the necessary incentives and support measures for the development of renewable energy sources (Mini Hydro, Bio Mass, Wind, etc.) have been put in place. In addition, the 2006 National Energy Policy identified fuel diversification and energy security in electricity generation as a strategic objective, and the development of renewable energy projects was identified as part of this strategy.

In the light of the above measures, steps have been taken to introduce, from 2007, a three-tier cost-based tariff, based on costs, instead of a cost-based tariff. Sri Lanka`s Ceylon Electricity Board (CEB), the public energy provider under the Ministry of Energy, Energy and Business Development, has launched a Tender (RfP) launched by foreign and domestic companies for the development and maintenance of 150 MW of solar projects at different sites across the country. The deadline for submission of tenders is 21 May 2020, while the pre-advertising meeting will take place on 30 April 2020. . .

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