The Attorney General (AG) has raised concerns that the proposed changes to Sri Lanka’s Renewable Energy (RE) policy could lead to legal disputes, further complicating the already delayed selection process for 47 renewable energy projects (Expression of Interest – EOI projects), as reliably learnt by The Sunday Morning.

As the Ministry of Energy moves forward with implementing a competitive bidding framework for these projects, the AG has questioned the legality of retroactive changes to terms already agreed upon.

Energy Ministry Secretary Prof. Udayanga Hemapala confirmed to The Sunday Morning that the ministry had received the AG’s advice, but declined to provide further details on the matter.

Developers, who have already invested millions in non-refundable application fees, land acquisitions, and environmental assessments, may take legal action if sudden changes are made to tariff structures or project selection criteria. 

This could disrupt Sri Lanka’s energy transition and potentially deter future investments, threatening the country’s RE goals.

A consortium of 43 developers, waiting for nearly three years for clarity, expressed concerns about the Government’s future actions. While 533 developers initially submitted proposals in 2021, only 47 projects were shortlisted and delays have created growing uncertainty.

The ministry has reiterated its commitment to ensuring fairness and transparency, with Prof. Hemapala stressing that the selected projects would undergo a competitive bidding process to ensure the best pricing options were presented to the Cabinet for approval.

He added that the ministry continued to work on a policy aimed at providing long-term clarity and stability for investors.