Regulatory & Policy NewsEnergy & Utilities

🔋 Grid Battery Plan Unlikely to Resolve Rooftop Solar Bottlenecks

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Parliamentary committees (CoPF and SOC) warned that the National System Operator’s (NSO) 160 MW grid battery project will absorb national surplus solar, but will not relieve local transformer overloads in high-demand areas like the Western Province. • Grid vs. Local Storage Bottlenecks: - NSO is deploying 16 substation batteries (16⚡ Sri Lanka Grid Battery Plan Fails to Relieve Rooftop Solar Bottleneck Parliamentary committees (CoPF and SOC) highlight that the National System Operator's (NSO) 160 MW grid battery project will not resolve localized transformer congestion blocking new household connections, particularly in the Western Province. • Network Bottlenecks & Grid Allocation: 160 MW (40 MWh x 16 substations) battery rollout targets grid substations outside congested urban areas, aiding ground-mounted solar farms rather than local rooftop solar users in areas like Kotte and Kolonnawa. • Tariff Changes & Cost Burdens: Net metering/accounting is closed for new users, forcing them onto 'Net Plus' with a feed-in tariff of ~Rs. 23/unit while buying power at ~Rs. 100/unit (above 180 units). Household 5 kW batteries cost over Rs. 1 million and still incur import duties, whereas megawatt-scale batteries enjoy duty-free imports. • Energy Sector Demand: Daytime solar output (>2,000 MW) approaches daytime peak demand (2,500–2,600 MW). Thermal power still accounts for ~40% of generation. Total consumption up to 21 Sept rose to 14,062 GWh (vs. 11,637 GWh YoY), risking reserve margin breaches. • Policy Disagreements: Discrepancies persist between Cabinet-approved tariff policies and PUCSL guidelines, creating regulatory friction for the renewable energy sector. CoPF approved Rs. 17.2 billion for NSO to cover Q1 deficits.

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