brand logo

Power crisis: Cabinet nod for $ 4 b grid expansion

30 Apr 2022

  • Funding sought from ADB and JICA
  • Expansion of grid to allow pvt. sector entry
  • Grid update to facilitate entry of renewable energy
By Maheesha Mudugamuwa The Cabinet of Ministers has last week given the green light to a proposal submitted by the Ceylon Electricity Board (CEB) to develop the country’s electricity transmission network and grid capacity by opening it up to the private sector on a build-and-transfer basis, The Sunday Morning learns. It is learnt that the total estimated cost of the project was around $ 4 billion, and that part of the funding had already been sought from the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA). The network is to be upgraded to facilitate the absorption of renewable energy generation capacity to the national grid. Depending on the funding the ADB and JICA commit to, the balance funding for the project will be raised via private investors by investing in the capital market, according to CEB Chairman M.M.C. Ferdinando. He told The Sunday Morning that Cabinet approval had been granted last Monday (25 April) and that the CEB was now going ahead with the development of the network. “By developing the transmission network, most of the issues pertaining to the purchasing of renewable energy will end. At present, most of the grid substations are not compatible with renewable energy resources,” Ferdinando said. He went on to say that the transmission network had been developed without giving due consideration to renewable energy. “Originally the national policy was that we should go for 10% renewables in 2009. But by 2019 it was decided to have 50%. The new Government increased it up to 70%,” he added. However, he emphasised that with the existing grid capacities and transmission network, the renewable energy generation sector could not be added into the system.        


More News..