ECONOMYNEXT – Sri Lanka’s state-run Ceylon Electricity Board has announced feed-in-tariffs for renewable energy for standardized power purchase agreements below 10 MegaWatts, without competitive tendering, effective from June 2025, reducing them from earlier levels.
Minihydro will be given 25.74 rupees, down from 30.53 rupees a kilowatt hour.
Wind will get 23.83 rupees, down from 29.86 rupees.
Ground mounted solar would get 17.82 rupees, down from 25.48 rupees.
Floating solar would get 24.33 rupees.
Municipal biomass would get 44.04 rupees.
The feed-in-tariffs are on a 20 year power purchase agreement for 20 years.
Biomass would get 31.25 rupees under an escalable rate down from 52.77 rupees.
Both biomass and municipal plants can be run in the night, helping with the peak demand and also throughout the year, like a thermal plan.
“These revised tariffs are designed to balance investor returns with affordability for electricity consumers, and ensure the long-term sustainability of renewable energy integration into the national grid,” the CEB said in a statement.
Rooftop solar rates have also been reduced with a tiered rate depending on size with smaller systems getting higher rates.
Under the new rates, up to 5kW will get 20.90 rupees a kiloWatt hour, between 5kW and 20 kW 19.61 rupees, up to 100kW 1786 rupees, up to 500kW 15.49 rupees, up to 1000kw 15.07 rupees and 1MW and over 14.46 rupees.
Under the earlier system roof top solar below 500 kiloWatts was paid a flat rate of 27.06 a unit for 20 years. Over 500kW was paid 23.18 rupees.
The CEB said applicants who have paid processing fees before June 16 can get the earlier rate. Those who pay the clearance fee after June 16 will get the lower rate.
Sri Lanka’s Federation of Renewable Energy Developers however has said the new feed in tariffs are not enough and will discourage the sector.
Investors said unlike in the past, the government was no longer giving land and private businesses had to find their own at market rates.
Under competitive bidding however, Sri Lanka is getting lower rates. Under the current systems smaller plants below 10 MW are no longer awarded under competitive bidding.
Wind will getting close to 8 US cents, under the standardized feed-in-tariffs compared to 4.65 cents for the last competitive tender in Mannar where the plant factor is around 35 percent.
Battery solar exported to the grid in the night giving the same benefit as a thermal plant would get 45.8 rupees a unit.
RELATED :
Sri Lanka to pay Rs45.80 a unit for battery solar power in the night
Vietnam sets battery solar tariff around Sri Lanka rupees 14-18 levels
The tariff is denominated in rupees, which can depreciate if the central bank prints money to cut rates in the future for flexible inflation targeting (to push up the cost of living) or for potential output targeting (print money to push up growth) and triggers another currency crisis.
RELATED : Sri Lanka cabinet approves new feed-in tariffs for renewables
Sri Lanka sharply raised renewable tariffs during a currency crisis which ended in default in 2022, as the rupee collapsed to 360 to the US dollar and solar panels and other equipment also went up amid a energy commodities bubble, and has since reduced them twice.
(Colombo/June28/2025)
Continue Reading
