The Asian Development Bank (ADB) has approved a $200 million loan to upgrade Sri Lanka’s power sector infrastructure, enhancing the reliability of transmission and distribution networks and facilitating greater integration of renewable energy. Contact online >>
The Asian Development Bank (ADB) has approved a $200 million loan to upgrade Sri Lanka’s power sector infrastructure, enhancing the reliability of transmission and distribution networks and facilitating greater integration of renewable energy.
Issuing a statement, the ADB said of the total amount, US$150 million will be provided to the Ceylon Electricity Board (CEB) and US$50 million will go to the Lanka Electric Company (LECO) adding that both financing will be guaranteed by the Democratic Socialist Republic of Sri Lanka.
"Driving power sector reforms, combined with targeted infrastructure interventions, is essential to facilitate competitive renewable energy development and reduce power generation costs,” said ADB Country Director for Sri Lanka Takafumi Kadono. "By expanding and modernizing infrastructure and incorporating digitalization solutions, this project will support the government''s goal of increased integration of renewable energy in the electricity mix, reduce power interruptions, and minimize transmission and distribution losses.
Sri Lanka achieved 100% household electrification in 2016. Peak demand reached around 2,800 megawatts (MW) in 2023, including contributions from distributed renewable energy, and is projected to grow significantly by 2030. While Sri Lanka''s total installed power generation capacity reached 5,191 MW in 2023, about 50% of the country''s electricity generation in 2023 came from thermal power plants, underscoring the challenges in transitioning to a more sustainable energy mix. In its updated nationally determined contribution, the government has set an ambitious target of 70% electricity generation from renewables by 2030 and carbon neutrality in electricity generation by 2050.
The approval of this project reflects the significant progress made by Sri Lanka in advancing power sector reforms, which aims to enhance financial sustainability, ensure cost recovery tariff revisions, and competitive renewable energy development. ADB''s support for infrastructure upgrades is contingent on these reforms, recognizing their critical role in renewable energy integration and improving the sector’s overall performance.
The project will strengthen the institutional capacities of the Ceylon Electricity Board (CEB) and Lanka Electric Company (LECO)—the only utilities in the country responsible for power delivery to end-consumers. The project will improve their ability to integrate and manage renewable energy systems, adopt digital solutions, and enhance hosting capacity of rooftop solar installations.
Various career development activities for CEB and LECO female staff, awareness-raising programs on safe and productive use of electricity, and training on adopting clean energy solutions for women-led groups and businesses will be implemented.
The ADB added that it is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region. (Newswire)
Businesscafe - With the recent successful completion of the nation''s first comprehensive grid tied renewable energy microgrid project at the University of Moratuwa (UOM), DIMO, a leading diversified conglomerate in Sri Lanka, is now well equipped to implement microgrid systems for the local industries to ensure an uninterrupted power supply.
DIMO will also provide microgrid services to the Maldives and rural regions in Africa where the company has already established its footprint through other engineering solutions.
As a company that continuously strives to reshape the green energy landscape of Sri Lanka, DIMO is providing advanced solutions for mini-hydro, bio mass, solar and wind power plants in the country.
DIMO has also played a key role in the implementation of Sri Lanka''s first ever wind power project in Mannar and the successful completion of the nation''s first microgrid system is a true testament to DIMO''s commitment to implement innovative green energy initiatives.
The microgrid system at the UOM supplies uninterrupted power to the university despite the current power cuts faced by the country.
Even during the 13-hour power cuts, the microgrid was capable of effectively managing the demand of the connected loads.
DIMO implemented the microgrid system at UOM in collaboration with Lanka Electricity Company (LECO) and with the financial assistance of the Asian Development Bank (ADB).
This project connects stand-alone grids to ensure an uninterrupted, renewable power supply throughout the distribution area at any time.
The completed system consists of a 375kW of Solar PV, 418kWh of Battery Storage and a 1170kVA backup Diesel generator.
With this project, UOM now can generate its power requirement within its own premises, without depending on the national power supply. DIMO also partnered with German off-grid experts DHYBRID, a leading provider of renewable energy solutions with individualized control systems for hybrid energy supply, for this project.
DHYBRID has implemented over 75 projects in more than 25 countries around the world.
DHYBRID''s energy solutions combine power from multiple renewable energy sources including solar and wind, with the traditional grid, diesel powered generators and battery storage, while perfectly controlling these sources to effectively and efficiently meet the varied power requirements of the clients.
The microgrid system is a decentralised group of electricity sources and loads that are connected synchronously to the main power grid. A microgrid runs on two modes.
The off-grid mode supplies power to the loads via energy sources without the support of the grid, whereas in the on-grid mode, the system stays synchronised with the grid, and any excessive power is fed to the grid.
Microgrids integrate renewables into the energy mix intelligently and seamlessly balance the variable output of renewable energy while enabling the system to seamlessly transfer from on-grid to off-grid mode during power outages.
Thus, the microgrid overcomes the transient nature of solar and wind energy through intelligently accommodating energy storage.
With no human intervention, a microgrid can tap into other resources including grid, diesel generators or battery storage, when the renewable energy source is unavailable.
Microgrids have been successfully implemented in smart cities in USA, Australia and other developed regions, in rural areas and isolated electrification around the world.
In Sri Lanka, power from hydro plants have dropped below 28% during the dry season and this, along with the prevailing forex crisis, has led to extended power cuts in the country.
The demand for energy will continue to rise, and even if commercial and industrial sectors have implemented solar power, it is of no use during power outages.
Microgrids allow renewable energy to be utilised during power outages as well. Mr. Gahanath Pandithage, Group CEO of DIMO, said,
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