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Sunshine Delayed: Solar Projects Stalled by CEB Grid Restrictions

What’s Happening:

10–15 ground-mounted solar projects under Special Power Purchase Agreements (SPPAs) have been put on hold by the Ceylon Electricity Board (CEB).

The CEB board decided to pause integration of these projects until it resolves ongoing curtailment issues, especially on Sundays and public holidays.

The Bottleneck:

Low daytime demand on weekends and holidays (due to factory and office closures) makes it hard for the CEB to balance the grid.

As a result, solar, wind, and small hydro plants are shut down from 9:00 a.m. to 2:00 p.m., causing financial losses for developers.

This affects ~70 days per year, leading to an estimated 20% loss in potential generation—with no compensation.

Policy & Legal Concerns:

The Ministry of Energy is withholding provincial approvals already cleared by the Sustainable Energy Authority’s Project Approving Committee.

Developers argue this violates Sections 16–18 of the Sri Lanka Sustainable Energy Authority Act No. 35 of 2007.

The Federation of Renewable Energy Developers (FRED) questions how the CEB can override ministry-approved projects.

Broader Implications:

The standoff highlights grid instability risks, contractual breaches, and policy uncertainty in Sri Lanka’s renewable energy transition.

Developers are calling for clearer policy direction, grid modernization, and compensation mechanisms for forced curtailments.

July 6, 2025 📍 Location: Sri Lanka (source The Sunday Times)


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