The Hon. Janitha Ruwan Kodithuwakku - Deputy Minister of Ports and Civil Aviation

¶ 01 Hon. Presiding Member, thank you for the opportunity.

¶ 02 Many Ministers and Members spoke today; I listened. We must consider the global direction of energy. For decades fossil fuels dominated and countries built economies upon them. With time, technology and environmental imperatives have driven a transition. How a country like Sri Lanka harnesses this shift is crucial. We have significant potential and must move from being mere consumers to entering the market as power sellers. That requires an updated energy policy.

¶ 03 Under a National People’s Power (NPP) Government, our policy is people-centric energy transition—affordable, secure, and clean energy; smart and people-centric energy; and strategic global integration of the energy sector. We have stated this on platforms and put it in writing.

¶ 04 On renewables, Sri Lanka is small with limited land; land management is essential—identify prime agricultural lands, industrial lands, and settlement lands, and zone the country accordingly. We have demarcated three primary belts. The first belt from Puttalam to Jaffna can deliver 1,000 MW this year. In the North and East, within five years, we will add 2,000 MW of rooftop solar. Around Monaragala and Hambantota, with solar and wind as anchors, we will produce hydrogen and ammonia—exportable energy carriers without needing a cross-border cable. That is our plan for the next five years and beyond.

¶ 05 In the last three months, we commenced a wind project in Mannar. The tendering details will be clarified by the Minister. Under an NPP Government we will conduct procurement with 100% integrity. We have achieved a price of USD 4.65 cents per kWh for a 50 MW wind project—the lowest in our history. For Sampur solar, in two phases (50 MW and 70 MW), the price is USD 5.97 cents per kWh. Our target is to bring new renewable energy around USD 5 cents per kWh. Currently, average generation costs are about USD 13 cents; we aim to reduce to USD 8 cents. Older PPAs are higher and we must still purchase from them and from thermal plants. Therefore, all new renewable capacity should be procured around USD 5 cents to reduce overall costs. Since 70–80% of the electricity bill goes towards generation costs, the only way to reduce bills is to build low-cost generation. You cannot build plants in three months; please make constructive, fair criticism.

¶ 06 The main barrier to integrating renewables into the grid is lack of storage. The solution includes storage batteries and ramping batteries. We are planning 2,500 MWh of battery storage within the next five years, with steps initiated this year. We also plan to start a pumped storage facility in Kegalle this year.

¶ 07 Another major issue: petroleum products account for 44% of national energy use, of which 80% goes to transport—almost entirely on fossil fuels. To reach net zero by 2050, a significant share of transport must shift to electrification. Therefore, the Energy Ministry, with Highways, will this year establish a National e-Mobility Secretariat.

¶ 08 We have a clear pathway and will welcome constructive criticism.