• 750MW storage target expected to cut fuel costs and reduce electricity bills

The National System Operator (NSO) Private Limited stated that it expects to significantly reduce diesel-fired electricity generation before the end of 2027 by integrating large-scale battery energy storage into the national grid.

NSO Chairperson Dr Pradeep Priyadarshana said that plans are in place to add around 750 megawatts (MW) of battery storage capacity by the end of next year.

He also said that the battery systems are already being connected to the electricity network, with 160MW of battery capacity having already arrived in Sri Lanka and installation now underway.

He said that tenders have also been called to secure private sector investment for an additional 250MW of battery storage, which is expected to be connected to the grid between March and April next year.

Another 100MW will be procured through the National Transmission Network Service Private Limited with financial assistance from the Asian Development Bank.

In addition, Dr Priyadarshana added that there is a plan to invite bids to install battery storage alongside 150MW of ground-mounted solar power plants.

He said that the combined projects would enable the country to add 750MW of battery capacity to the national grid by the end of 2027, reducing dependence on diesel generation.

He added that further solar and wind power projects planned for 2028 and 2029, together with expanded battery storage, would also reduce the need for thermal power generation.

According to Dr. Priyadarshana, the initiative could save between Rs 30 billion and Rs 35 billion annually and ultimately allow electricity tariffs to be reduced for consumers