Local renewable energy developers face unfair terms compared to foreign investors – Energy Analysts

Energy Analyst Dr. Vidhura Ralapanawe says Sri Lanka’s local energy developers are being offered unfavourable terms for renewable energy projects compared to foreign investors.

He made this statement while speaking at a press conference convened by the National Chamber of Commerce on Thursday (03).

“If you look at Siyambalanduwa project or Mannar wind project, what they say is developers account for up to 5% uncompensated curtailment and beyond that if the CEB (Ceylon Electricity Board) curtails, it has to be compensated at the same rate. People who bid for that, they account for this 5% curtailment”, he noted. 

“The problem is this feed-in tariff uses equation. This equation assumes 100% of the power generated will be taken by the CEB. If they wanted, they could put the same 5% curtailment in the contract and they should have added that in to the equation. Then the contract becomes bankable.”

Furthermore, Dr. Ralapanawe argued that excess curtailment will cause developers to operate at a loss, stating, “in some years, they are projecting 23% of the energy will be curtailed from renewable energy. So, we are running at a loss.” 

“People who keep tariffs low are given bad conditions while people who sign contracts in dollar terms and fossil fuel contracts are given favourable terms”, he added.