- 533 proposals submitted under 2021 EOI
- SLSEA issues energy permits
Only seven Renewable Energy (RE) projects have received grid concurrence from the Ceylon Electricity Board (CEB), prompting the Government to approve only seven projects out of 47 shortlisted under the 2021 Expression of Interest (EOI) process, as reliably learnt by The Sunday Morning.
The decision comes nearly four years after 533 developers submitted proposals in what was expected to be a major step towards expanding Sri Lanka’s renewable energy capacity, while the remaining projects continue to face delays due to grid capacity constraints and policy uncertainty.
The initial EOI process in 2021 attracted 533 developers, with 47 renewable energy projects eventually shortlisted for implementation. However, as the years went by, the projects stalled amid regulatory delays and the lack of available grid capacity.
It is also learnt that of the shortlisted projects, only seven were able to secure formal grid concurrence from the CEB, effectively limiting approvals for those developments.
Earlier this year, the Ministry of Energy appointed a subcommittee to study issues related to the 47 renewable energy projects. The move has drawn criticism from developers, who argue that the process has prolonged uncertainty without providing clear timelines for approvals.
In a letter sent in November, which was seen by The Sunday Morning, the Ministry of Energy formally informed the Director General of the Sri Lanka Sustainable Energy Authority (SLSEA) that approval has been granted by the Minister of Energy to implement the seven renewable energy projects that obtained grid concurrence. The decision was taken after reviewing recommendations from the CEB.
The approved projects include a 100 MW solar power plant in Oddamavadi in Batticaloa by Solar Forge Ltd., a 100 MW solar power plant in Punani West by Seek Energy Ltd., a 50 MW wind power project in Kalpitiya by Asia Wind Power Ltd., a 100 MW solar power plant in Nilaveli by 3W Power Management Ltd., a 100 MW solar power plant in Mutur by Orbital Energy Earth Bound Ltd., a 50 MW solar power plant in Trincomalee by BlueSun Technology Ltd., and a 50 MW solar power project in Jaffna by Ceylon Electric Power Development Ltd.
In a letter referenced PE/DEV/02/04 Vol. II, Ministry of Energy Secretary Prof. K.T.M. Udayanga Hemapala requested the SLSEA to issue energy permits for the approved projects upon completion of all relevant requirements, in accordance with the SLSEA Act, on or before 28 November 2025.
A follow-up directive was later issued by the ministry, reiterating ministerial approval for the same seven projects and urging expedited action due to the prevailing emergency situation in the country. Referring to the earlier letter dated 24 November 2025, the ministry instructed the SLSEA to complete all remaining procedures and issue energy permits on or before 8 December 2025.
Speaking to The Sunday Morning, Prof. Hemapala said grid availability was the primary reason for only seven projects being moved forward.
“We had several meetings with the CEB. Seven projects have concurrence. For some projects, the grid is available on or before the completion date of these projects – two-and-a-half years. These seven projects can be given grid space by the time the projects will be completed. All other 40 projects have grid concurrence issues, and grid capacity will only be available around 2030,” he said.
The 47 shortlisted projects represent a combined investment of over $ 3.5 billion in Foreign Direct Investment (FDI) and were expected to play a key role in expanding renewable energy generation in Sri Lanka. When initially announced, the projects were projected to add significant renewable energy capacity to the national grid.
However, allegations have been raised that the unit prices of the approved projects are high, with claims that Sri Lanka could incur losses of around Rs. 20 billion over the 20-year contract period. Responding to these concerns, Prof. Hemapala said the pricing was competitive.
“The unit price of solar projects is at Rs. 18, which is lower than the recently tendered solar project which cost around 8 US cents, which is also a dollar-pegged rate, whereas the finalised seven projects are LKR-pegged projects and the same unit cost will be applicable for all 20 years,” he said.
On wind power projects, the Secretary said the unit cost was slightly higher, at around Rs. 20, compared to recently tendered projects, but noted that the cost included investment in transmission lines.
“The CEB won’t bear the cost; therefore, the costs are fair,” he said.
He added that the SLSEA had already issued energy permits for the shortlisted projects and that therefore the projects could now move forward with the rest of the work.