- Renewables still supply 46% of daily power generation
- 1,083 MW of peak demand met by renewables
Re-registration of Renewable Energy (RE) companies with the Sri Lanka Sustainable Energy Authority (SLSEA) has fallen by 25–30% by the end of last month, according to sources familiar with the authority.
Sri Lanka currently has around 800 RE companies registered with the SLSEA.
However, industry sources warned that the sharp drop in re-registrations reflected mounting operational and policy-related challenges facing the sector rather than a routine fluctuation.
When contacted by The Sunday Morning, SLSEA Chairman Prof. Wijendra J. Bandara confirmed the decline in re-registrations but downplayed its significance, stating that the reduction did not materially affect the overall RE industry when viewed against the total number of registered companies.
However, Prof. Bandara acknowledged that grid saturation remained a key obstacle, with many parts of the national grid already operating at maximum capacity.
The SLSEA Chairman said several renewable energy project applications had been rejected due to a lack of available transformer capacity, effectively limiting new connections.
He also admitted that the ongoing Ceylon Electricity Board (CEB) reform process had contributed to delays and uncertainty in the sector. “These issues have affected the process to some extent. We expect the situation to improve once the reforms are concluded,” Prof. Bandara added.
Despite these challenges, RE continues to account for a significant share of Sri Lanka’s power generation. According to CEB data, on Friday (6), renewable sources generated 23.75 GWh, representing 46.19% of the country’s total net electricity generation of 51.41 GWh.
Hydropower remained the dominant renewable source, contributing 14 GWh, while solar power from small power producers accounted for 6.21 GWh. Wind energy from both CEB-owned and private sector plants generated a combined 1.78 GWh, with biomass and mini-hydro contributing 0.26 GWh and 1.5 GWh, respectively.
At peak demand, renewables supplied 1,083.8 MW or 40.9% of the total peak requirement of 2,649 MW, underscoring the sector’s growing role in the national energy mix even as new additions face constraints.
The decline in re-registrations comes amid a broader restructuring of renewable energy pricing. In 2025, the Government revised the renewable energy tariff framework, reducing purchase prices for larger solar installations in a bid to pass lower costs on to consumers.
Under the Cabinet-approved tariff revisions on 16 June 2025, rooftop solar photovoltaic (PV) systems receive tiered payments, with installations of up to 5 kW earning about Rs. 20.90 per kWh, falling progressively to around Rs. 14.46 per kWh for systems exceeding 1 MW. Ground-mounted solar projects of up to 10 MW are priced at approximately Rs. 17.62 per kWh, while floating solar projects receive higher rates due to higher development costs.
In late 2025, the CEB also introduced a time-based tariff for Battery Energy Storage Systems (BESS) linked to solar PV, offering Rs. 45.80 per kWh for electricity exported during the night peak from 6.30 p.m. to 10.30 p.m. – a move aimed at easing evening peak demand but which has drawn mixed reactions from developers.
Meanwhile, when contacted, Ministry of Energy Secretary Prof. Udayanga Hemapala acknowledged that sections of the renewable energy industry were unhappy with the revised tariffs but insisted that the Government had not slowed RE expansion.
“Renewable energy additions have not been curtailed. Solar power is now cheaper than petroleum-based generation, and our priority is to expand solar and wind capacity while ensuring fair prices for consumers,” Prof. Hemapala said.
He added that resistance from some developers was inevitable as tariffs declined.
“Some companies that are unhappy with the new lower rates will raise concerns. But the objective is to ensure that the benefits of cheaper renewable energy are passed on to the public,” he said.