Hon. Kumara Jayakody - Minister of Energy

¶ 01 Mr. Speaker, under Standing Order 27(2), the questions raised by Hon. Ravi Karunanayake are answered as follows:

¶ 02 1. In line with the Government’s energy policy to achieve 70% generation from renewable sources by 2030, the CEB has prepared Long-term Generation Expansion Plans consistent with prevailing policy guidelines. For rooftop solar and projects below 10 MW, the CEB provides renewable developers with a standard tariff. In addition, following discussions with stakeholders, tariffs are determined based on an approved procedure, with calculations carried out by a committee appointed by the Ministry of Energy. The committee comprises members from the Ministry of Energy, the Ministry of Finance, Lanka Electricity Company (Private) Limited (LECO), the Ceylon Electricity Board (CEB), and the Sri Lanka Sustainable Energy Authority (SLSEA).

¶ 03 Furthermore, to integrate renewable energy into the national grid, the CEB invites future developers through competitive procurements for renewable project development.

¶ 04 2. Especially for projects under 10 MW and rooftop solar, we will act with due consideration for the large number of people operating profitably in the sector. All relevant costs are factored into tariff calculations, including labour, O&M, and other expenses. Tariffs for rooftop and sub-10 MW projects are reviewed periodically. Capital costs of equipment, O&M, financing costs and all impact parameters are considered to ensure a fair tariff that sustains the sector. Decisions are taken not only with investors in mind but also to ensure benefits flow to the people. We encourage competitive bidding over unsolicited proposals for renewable projects.

¶ 05 3. Under the CEB’s latest Long-term Generation Expansion Plan (LTGEP 2025–2044), the future generation mix is expected to be predominantly renewable, targeting 70% renewables by 2030 and carbon neutrality by 2050. The plan identifies the following capacity additions: - Grid-connected solar: 1,434 MW - Rooftop solar: 1,045 MW - Wind: 860 MW - Biomass: 105 MW - Mini-hydro: 90 MW

¶ 06 4. The PUCSL has not rejected the CEB’s LTGEP. However, the PUCSL has expressed concerns about certain input parameters which do not materially affect overall outcomes. Discussions are ongoing with the PUCSL to resolve these issues.

¶ 07 5. The Ministry and the CEB are working to increase the share of renewables in the generation mix. Construction of the 120 MW Sampur solar project by Trincomalee Power Company Ltd. (a JV of India’s NTPC and the CEB) will commence in April. The 50 MW Mannar wind project procured through international competitive bidding will also begin construction in April. Procurement for a 100 MW wind project at Mullikulam, Mannar, will commence in April as well.

¶ 08 6. The LTGEP is aligned with national and international commitments on renewable energy and climate change mitigation.

¶ 09 7. Budgeted Direct Generation Cost – 2025:

¶ 10 - CEB Hydro: Energy 4,780 GWh; Energy charge Rs. 13,945 Mn; Total at generation point Rs. 13,945 Mn - CEB Thermal: Energy 1,084 GWh (6%); Energy charge Rs. 59,231 Mn; Capacity charge Rs. 27,190 Mn; Total Rs. 86,421 Mn; Avg. cost 79.75 Rs/kWh - IPP Thermal: Energy 2,137 GWh (12%); Energy charge Rs. 36,110 Mn; Total Rs. 36,110 Mn; Avg. cost 16.90 Rs/kWh - NCRE: Energy 1,396 GWh (8%); Energy charge Rs. 26,513 Mn; Total Rs. 26,513 Mn; Avg. cost 18.99 Rs/kWh - Net Account/Net Plus - Total: Energy 17,553 GWh (100%); Energy charge Rs. 336,200 Mn; Capacity Rs. 80,809 Mn; Total cost at generation point Rs. 417,069 Mn; Average Rs. 23.76/kWh

¶ 11 8. The projected average annual growth rate of demand over the next 10 years is approximately 5%.

¶ 12 9. Based on the latest planning studies, no additional (emergency) power is anticipated in the near future.

¶ 13 10. The CEB follows a tariff structure reflecting costs, reviewed every six months. Recently, tariffs have been reduced to benefit consumers.

¶ 14 Thank you, Mr. Speaker.