• PUCSL warns of higher demand, lower hydro generation
• 450 MW solar-plus-storage capacity ordered by March ’27
• New renewable energy tariffs take effect today

Sri Lanka could face a fresh threat of power cuts as the prevailing El Niño conditions push up electricity demand while reducing hydropower generation, the Public Utilities Commission of Sri Lanka (PUCSL) warned yesterday (24).

PUCSL Chairman K.P.L. Chandralal said electricity demand could increase under the prevailing weather conditions, while hydroelectricity generation could decline if water sources begin to dry up.

He warned that the combination of rising demand and reduced generation capacity could place significant pressure on the national electricity supply.

Chandralal made the remarks while addressing a media briefing yesterday on the announcement of new electricity purchase prices for renewable energy-based power plants.

The warning comes as the PUCSL approved new feed-in tariffs for electricity generated from renewable energy sources, with the revised rates coming into effect today (25). The tariffs will remain valid until 24 February 2027 and apply to renewable energy power plants, rooftop solar prosumers and projects incorporating battery energy storage systems (BESS).

The tariff methodology was approved under Section 29 of the Electricity Act, No. 36 of 2024.

The new tariff structure covers mini-hydro, wind, biomass, municipal solid waste, waste heat recovery, ground-mounted solar photovoltaic (PV) and floating solar PV projects.

Under the approved rates, the non-escalable component of the tariff has been set at Rs 30.37 per unit for mini-hydro, Rs 20.80 for wind, Rs 16.43 for dendro biomass, Rs 14.29 for agricultural and industrial waste biomass, Rs 41.72 for municipal solid waste, Rs 14.29 for waste heat recovery, Rs 18 for ground-mounted solar PV and Rs 23.58 for floating solar PV.

The new framework also introduces tariffs for renewable energy projects combined with battery storage, with higher payments available during the prioritised feed-in period.

For new rooftop solar PV systems, the feed-in tariff ranges from Rs 23.11 per unit for systems up to 10 kilowatts (kW) to Rs 15.81 per unit for systems above 250 kW.

New rooftop solar PV systems combined with BESS will receive Rs 45.53 per unit during the first 15 years for systems above 250 kW and up to 1,000 kW during the prioritised period. The corresponding rate for systems above 1,000 kW is Rs 42.49 per unit.

Separate feed-in tariffs have also been approved for ground-mounted and floating solar PV plants equipped with BESS.

As part of the tariff decision, the National System Operator (NSO) has been directed to ensure that at least 450 megawatts (MW) of solar PV with BESS capacity is added to the electricity system by March 2027.

The measure is intended to address the forecast capacity deficit during the first quarter of 2027 and ensure sufficient capacity to meet peak demand without scheduled power interruptions caused by capacity shortages.

The NSO has also been directed to ensure that the per-unit cost of the already offered 160 MW of BESS does not exceed Rs 20 per kilowatt-hour on a monthly average basis. Any amount above this threshold will not be recognised, recovered or allowed under the end-user electricity tariff.

The feed-in tariff methodology was developed following a public consultation process, with stakeholder comments and cost data taken into consideration before the tariffs were finalised.

The Commission's renewable energy framework covers technologies including solar, wind, hydro and biomass, as Sri Lanka seeks to expand renewable generation capacity as part of its longer-term energy transition.