The Hon. Ravindra Bandara

¶ 01 Hon. Chairman, today we are debating the vital energy sector and an ministry that has done significant work over the past year. For nearly 30 years, due to inefficiency and various reasons, including political factors, we could not complete the restructuring. Within this year, those tasks have been carried out and we have reached the final stage. That is significant. The Ceylon Electricity Board has been separated into 12 companies. As the Minister clarified, staff have not been laid off and it is structured so the Government remains the 100 per cent owner going forward. We are pleased about that. Through this restructuring, we will achieve transparency, competition and efficiency in the power sector. I speak at a time when these objectives are being realized.

¶ 02 We know about irregular power procurements in the past. There were issues of inefficiency and staffing. Ministers appointed people from their districts into sector institutions. Amid all that, moving to an efficient footing is noteworthy.

¶ 03 I must also respond to a few points by the Leader of the Opposition. He ridiculed our goals. But our goals are being achieved. He read from notes; had he listened to the Minister’s speech, he would have adjusted his remarks. Our renewable target was 2,000 MW; in the first year we have already added 702 MW from renewables. Only 1,300 MW remain, which we can complete in about four years. How, then, can he claim we are discouraging solar or renewables? He also spoke about tariff reduction while ignoring the massive payouts made under rooftop solar agreements. Contracts for 20 years at very high rupee unit prices have burdened consumers who then pay much more per unit. The lack of forward planning over 20-plus years caused this. Some say the best era was under Minister Kanchana, but those agreements were highly irregular. We also saw rooftop panels installed on many temples in Matara without adequate transformer capacity, making them unusable.

¶ 04 We are also fortunate that both the current Minister and State Minister are engineers, contributing to this improved efficiency.

¶ 05 On the 30 per cent bill reduction, we did not promise an immediate 30 per cent cut on taking office. The previous structure was messy. We are methodically correcting it to enable a 30 per cent reduction over time. The Government is committed to achieving this within the next three years. Many claims by the Opposition Leader were factually wrong, including on the renewable shares added.

¶ 06 A key issue in solar is that the System Control Unit could not see real-time generation from rooftop PV. Output varies with clouds and sunlight. We pushed capacity without building the needed smart systems. Without visibility and control, the system becomes unbalanced when we must maintain 50 Hz. We must control supply accordingly. While hydro and thermal are visible, rooftop PV was not. Now, solutions are being implemented.

¶ 07 As the Minister said, the pilot is underway. In phase one, 2,000 inverter control units are being installed on systems over 100 kW, enabling visibility and control of about 650 MW of solar. In phase two, 42,000 inverters over 5 kW will allow control of about 1,500 MW. Much of this development is being done in-house via the CEB with locally developed modems, using four Sri Lankan companies. Smart meters and a smart grid are also being rolled out. Then, even if panels are widespread, the system will be able to see and manage them, including at household level.

¶ 08 Some worry meter readers will lose jobs. Nobody is losing their jobs now; we will redeploy them to more productive roles as technology allows remote reading.

¶ 09 Using local resources reduces forex outflows on diesel. That is how we bring bills down.

¶ 10 With smart grid and meters plus AI tools for forecasting, we can better integrate solar. An EU grant is helping install solar on Government rooftops. For example, if we add solar to the Dambulla cold room facility, the model is: 15 per cent goes to the consumer to cover their bill, 80 per cent to the Government, and 5 per cent to the CEB for essential needs. That 80 per cent can subsidize MSME electricity bills. There are many reliefs for small and medium industries.

¶ 11 These are the “dreams” we are implementing—dreams aligned with people’s needs, not contradictory rhetoric.

¶ 12 On pumped-storage hydropower: it is useful, but we must also move with the world, including green hydrogen. Green hydrogen is a clean fuel from water using solar and wind, with no pollution. It can be stored and exported. India has introduced hydrogen-fuel buses; Toyota has the Mirai; hydrogen vehicles are emerging. Green ammonia as a byproduct has a good market and can be used for fertilizer and urea.

¶ 13 We are planning long-term, unlike those 20-year buyback contracts. Our focus is the consumer; our aim is to reduce bills.

¶ 14 The President highlighted that 500 MW of wind projects were previously tendered at 8.26 US cents/kWh without proper procurement. Recently, two 50 MW plants were awarded at 3.96 and 3.88 US cents/kWh. What used to be 8.26 cents is now below 4 cents—good news.

¶ 15 The Opposition should support the national journey to become the country with the lowest electricity bill in Asia through renewables, instead of opposing everything.