⚡ Sri Lanka’s Renewable Energy Policy Needs Focus on Grid Expansion & Public Investment

• Capacity & Generation: • Total installed solar energy capacity reaches ~3,000 MW, with over 2,550 MW driven by rooftop solar. • Rooftop solar has reduced electricity generation costs by displacing expensive power, saving an estimated >Rs. 22 per unit across ~7.9 million consumers. • People-Driven Growth vs Tenders: • Feed-in tariffs (<10 MW) average project sizes <50 kW, backed by ~160,000 household and SME prosumers. • Commercial tenders face execution delays; the 100 MW Siyambalanduwa project (awarded at ~US$0.08/unit or ~Rs. 28/unit 3 years ago) is yet to supply power, whereas localized rooftop solar delivers immediate output. • Grid Modernization & Curtailment: • Critical bottleneck lies in distribution network limits, not transmission. • Technical issues affect <500 of ~33,000 distribution transformers (~1.5%), making blanket grid curtailments unnecessary compared to targeted network upgrades or localized battery storage. • Future Potential & Policy Alignment: • Target of adding 2,600 MW by next year faces feasibility concerns due to lengthy approvals and land access. • Floating solar energy on reservoir surfaces (~15%) and Puttalam Lagoon (~13%) offers scalable, land-neutral generation. • Calls to make energy storage duty-free for smaller prosumers to protect the nation's clean energy model.