Grid Update: Forced Renewable Power Shutdowns to End by 2027 📈

• Overall Target: The National System Operator (NSO) expects to completely eliminate forced curtailments of solar and wind generation next year through the integration of Battery Energy Storage Systems (BESS). • The Problem: Renewable energy developers face heavy financial losses due to repeated forced shutdowns during low-demand periods (weekends and public holidays). Earlier this year, solar and wind curtailments caused an estimated loss of around Rs. 2 Bn to the sector, including a 10-day forced disconnection of large-scale rooftop solar in April. • The Solution: Sri Lanka is rolling out over 400 MW of battery storage to absorb excess clean energy and stabilize the grid: - A 160 MW BESS tender has already been awarded, with equipment delivered. - A subsequent 250 MW battery storage tender is set to be launched. • Sector Landscape: Renewable sources (including large hydro) accounted for ~62% of Sri Lanka's total electricity generation in 2025. High power tariffs remain a critical hurdle, placing local manufacturers at a competitive disadvantage against regional peers. • Regulatory Reform: Under the new electricity sector framework, the authority to determine tariffs for renewable energy has officially shifted from the CEB to the PUCSL.