Any revisions to renewable energy tariffs are to be determined by the Public Utilities Commission of Sri Lanka (PUCSL), with the Ceylon Electricity Board (CEB) responsible for calculating and submitting costs for review.
Addressing the ongoing discussion around renewable energy pricing, CEB Chairman Dr. Tilak Siyambalapitiya said: “When looking at the current costs, I do not see them increasing. In fact, costs have either remained stagnant or declined over the past few months.”
He emphasised that the goal was to strike a balance between suppliers and consumers, ensuring that electricity was delivered to the economy at the lowest possible cost while still providing fair pricing to the renewable energy sector.
“It’s not about asking the renewable energy industry to produce electricity at an unsustainably low price but rather a price that makes business sense for it,” he said.
Dr. Siyambalapitiya also noted that established calculation templates would be used for any future tariff revisions, which would apply only to new renewable energy projects and not existing ones.
The new rooftop solar tariffs proposed by the committee appointed by former Minister of Power and Energy Kanchana Wijesekera will apply only to new customers entering Power Purchase Agreements (PPA) with the CEB after 1 July.
A letter from CEB General Manager Dr. Narendra De Silva confirmed that the Cabinet had revised tariffs for rooftop solar schemes due to changes in capital costs and economic factors.
The revised tariffs include Rs. 27.06 per kW for systems up to 5,000 kW and Rs. 23.18 per kW for larger systems, effective for 20 years. These revisions follow significant reductions in the cost of solar PV panels and exchange rates.
However, the PUCSL has decided to maintain the current tariffs until further review, concerned that the reduction could hinder the Government’s target of 70% renewable energy by 2030.
Projects with PPAs signed before 1 July will follow rates introduced in June 2023, ranging from Rs. 43.77 to Rs. 48.89 depending on system size, with aggregation schemes at Rs. 46.46.
However, The Sunday Morning reliably learns that the industry had lobbied former Minister Wijesekera for a higher tariff ahead of the Presidential Election.