As Sri Lanka experiences a surge in the adoption of Electric Vehicles (EVs), the spotlight intensifies on the capacity of the State-run Ceylon Electricity Board (CEB) to meet the escalating demand for green energy.
Environmentalists argue that while EVs are described as an environmentally friendly solution for curbing carbon emissions, their efficacy hinges upon their ability to be charged using electricity derived from renewable energy sources.
Speaking to The Sunday Morning, Centre for Environmental Justice (CEJ) Executive Director Hemantha Withanage said: “EVs represent the future of Sri Lanka’s transportation sector. The world is gradually transitioning to EVs, while other technologies like hydrogen Fuel Cell Electric Vehicles (FCEVs) are still in developmental stages. However, for a country like Sri Lanka, EVs are currently the frontrunners in the transport industry.”
He stated that while EVs may not be entirely eco-friendly, they represented a significantly greener alternative to traditional petroleum-fuelled cars.
However, he emphasised on the imperative for the Government to develop a strategy for incentivising the use of renewable energy sources in charging EVs. Without such measures in place, the sustainability of widespread EV adoption could be called into question.
Withanage further stressed on the necessity of a single integrated policy to promote renewable energy in Sri Lanka while highlighting various issues concerning the planning and implementation of renewable energy projects, indicating a lack of a cohesive Government policy in the renewable energy sector.
Expanding on this, Withanage stated: “If the Government is indeed planning to promote EVs, as evident through current initiatives, then there must be a corresponding plan to increase electricity supply. While there have been numerous plans, there are evident loopholes and irregularities in their implementation. Renewable energy projects should undergo strategic environmental assessments before launch.”
He emphasised the Government’s obligation to achieve net zero emissions by 2050 and urged for timely preparation of plans accordingly, while criticising the decision to introduce 200 new electric buses, suggesting that while EVs were beneficial for the country, decision-makers must prioritise wisely and focus on enhancing public transportation systems such as trains.
Additionally, he advocated for transitioning the existing vehicle population to EVs rather than inundating the market with new vehicles.
Need for renewable energy
According to the CEB’s Long-Term Generation Expansion Plan (LTGEP) 2023-2042, Sri Lanka has experienced a consistent annual growth rate of approximately 2.6% in peak power demand over the past two decades, a trend projected to continue. Sri Lanka’s total installed capacity, inclusive of dispatchable and non-dispatchable generation sources, stood at 4,184 MW by the end of 2021.
The country’s electricity system has maintained a renewable energy share ranging from 30-60% in recent years. Major contributions from hydroelectric sources have fluctuated based on hydrological conditions, while other renewable energy sources have shown steady growth.
Further, the CEB’s assessments of demand increase consider factors such as domestic electric vehicle charging patterns and railway electrification, reflecting a comprehensive approach to addressing evolving energy needs.
Nevertheless, in a presentation titled ‘Existing Policies and Projects in Power Sector Supporting Electric Mobility in Sri Lanka,’ delivered by CEB Chief Engineer (Generation Planning) Eranga Jayarathna, it was highlighted that special provisions needed to be incorporated for EVs in the electricity demand forecasting for the LTGEP 2025-2044.
This entails factoring in the anticipated growth in demand due to EV adoption. Examples of such considerations include the introduction of EV buses in the Colombo metropolitan area and Gampaha District, as well as railway electrification projects in the Colombo suburban area.
According to the National Energy Policy and Strategies of Sri Lanka, which aligns with Goal 7 of the Sustainable Development Goals (SDGs) of the UN, the policy aims to achieve universal access to affordable, reliable, sustainable, and modern energy for all by 2020, a decade ahead of the UN target.
Additionally, the policy seeks to reduce Sri Lanka’s dependence on fossil fuels to below 50% of the primary energy supply and to decrease specific energy use across all end-uses by 20% compared to 2015 levels by 2030. Moreover, this policy sets the groundwork for realising Sri Lanka’s vision of achieving carbon neutrality and a complete transition of all energy value chains by 2050.
The policy also facilitates the establishment of key manufacturing industries to supply sustainable energy technologies locally.
As part of this initiative, the most widely used suburban rail corridors, including those between Colombo and the Bandaranaike International Airport (BIA), Avissawella, Negombo, Panadura, and Veyangoda, were to be upgraded and electrified by mid-2023. Other viable railways in provincial city suburbs are slated for similar upgrades and electrification by 2025.
Furthermore, the policy outlined specific targets for EV adoption, stipulating that at least 20% of all new light vehicle registrations should be electric vehicles by 2022.
Additionally, it aimed to establish at least 25 new public electric vehicle charging stations with DC rapid charging capability at strategic locations by 2020, spearheaded by the CEB and Lanka Electricity Company (LECO). The policy encourages the private sector to complement these efforts by setting up their own charging stations, with fiscal incentives being secured to support the industry’s involvement.
A senior CEB official, who wished to remain anonymous, informed The Sunday Morning that there had been no proper assessment undertaken by the board on the increased electricity demand due to EVs.
Promoting EVs
Several measures have been taken by the Government to promote the adoption of EVs.
Notably, the Luxury Tax-free threshold for fully electric vehicles for migrant workers was increased from Rs. 6 million to Rs. 12 million, as per Gazette Notification No.2318/53 of 10 February 2023.
Additionally, recent initiatives approved by the Cabinet include the exemption of Customs tariffs for new rechargeable EVs up to $ 30,000, aimed at attracting investments and encouraging local assembly under specific Board of Investment (BOI) programmes.
Furthermore, the extension of an EV import licence scheme for Sri Lankan expatriates until 30 June facilitates the importation of EVs through formal bank transfers of foreign remittances, with efforts to regulate this process through the Imports and Exports (Control) Regulations No.2 of 2024. These actions signify the Government’s commitment to promoting EV usage and fostering investment in the sector.
As per the draft policy framework and implementation plan for the transition to e-mobility in Sri Lanka, the transportation plan for Colombo outlines a progressive approach towards sustainable mobility, particularly emphasising on the transition to EVs over the coming decades.
By 2025, the plan prioritises providing local industry incentives to facilitate the shift to electric motorcycles while aiming to increase the electric three-wheeler fleet to 52%, with a further goal of reaching 95% by 2030. Additionally, in the realm of cars and vans, electric or plug-in hybrid options for large engines are encouraged without specific incentives, while buses will see 50% of modernised routes served by e-buses, with a focus on securing low-cost financing.
Similarly, trucks will witness incentives for lower engine capacity EVs, with only electric registrations permitted for low-capacity trucks.
Meanwhile, the plan commences the electrification process for railways, particularly focusing on suburban routes. By 2030, a significant shift towards EVs across all categories is anticipated, with a majority of vehicles being electric or plug-in hybrid.
This transition will be accompanied by increased adoption of e-buses and electric trucks, alongside substantial progress in suburban railway electrification. By 2040, the transition to electric vehicles will be nearing completion, with only electric registrations allowed for cars, vans, buses, and trucks, resulting in a predominantly electric fleet.
Looking ahead to 2050, the plan envisions 100% electric registrations for all vehicle types, signalling a monumental milestone in sustainable transportation infrastructure, alongside the full electrification of the Colombo suburban railway network.
Similarly, in modelling the transportation sector, several assumptions are made to issue certain projections. These assumptions include estimating the share of public transport, encompassing buses and railways, and projecting their growth over time.
Additionally, the model considers the expansion of the motor vehicle fleet, managing the associated costs of vehicle and spare part imports through taxation mechanisms. The cost of petroleum imports is assumed to be based on a benchmark price of $ 80 per barrel, while the cost of electricity for transportation purposes is set at Rs. 60 per kWh.
Furthermore, the model incorporates the cost of road capacity provision, factoring in capital expenditure and the rate of fleet growth. It also considers the reduction in transport-related CO2 emissions, which is directly linked to the consumption of petroleum fuels.
Moreover, the electricity requirement for the transition to electric mobility is estimated based on the projected kilowatt-hour consumption of EVs. These assumptions provide a foundation for analysing the sustainability and economic implications of various transportation strategies and policies.
‘EVs not suitable for SL at present’
Speaking to The Sunday Morning, Ceylon Motor Traders’ Association (CMTA) President Charaka Perera noted that electric cars were approximately 50% more expensive than typical petrol cars. He explained: “When the country imports 100 electric cars, it can bring down 1,400-1,500 petrol cars.”
Perera emphasised on the financial aspect, stating: “The country will have to spend nearly $ 10,000 per car to import an EV, which will cost around $ 30,000, whereas a similar petrol car can be imported for around $ 20,000.
“Sri Lanka is spending an additional cost of $ 10,000 per car. If you convert this to rupees, it is equivalent to Rs. 5 million worth of petrol. How long does it take for one car to use Rs. 5 million worth of petrol? Ultimately, this means that forex has been spent.”
Expanding on his concerns, Perera pointed out that Sri Lanka’s electricity production relied heavily on non-renewable sources, with around 70% generated from coal or other carbon-emitting fuels, except during periods of heavy rain when hydrosystems were over 50% effective. He warned that increased adoption of EVs would further burden the system, leading to increased fossil fuel consumption and environmental harm.
Perera highlighted the additional expense of replacing EV batteries every 8-10 years, which can amount to $ 10,000-15,000 per vehicle, totalling $ 45,000 over a decade. In contrast, he suggested that one could acquire two petrol cars for $ 40,000 within the same timeframe.
Regarding environmental concerns, Perera emphasised on the necessity of recycling or repurposing electric batteries, highlighting a lack of proper infrastructure in Sri Lanka. He criticised past policies that had led to an influx of EVs without a clear plan for battery disposal or repurposing.
“The electric battery has to be recycled, re-exported, or repurposed. In 2014, the Government made the same mistake by drastically reducing EV duty to around 5%. Consequently, there was a heavy influx of Nissan Leaf vehicles. Around 5,000 vehicles were imported, and if you were to ask some of those customers, they would not know how to dispose of the batteries. They may have dumped them somewhere, perhaps in a garbage dump, spoiling groundwater. Ten years down the line, we still lack a process to track the electric batteries entering the country or to re-export or repurpose them,” he said.
Perera further noted that despite misconceptions regarding vehicle saturation in the country, Sri Lanka’s vehicle ownership per capita was not exceptionally high compared to other nations. Therefore, he concluded: “EVs are not the suitable product for Sri Lanka at the moment.”