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 New interim power generation plan under fire

New interim power generation plan under fire

08 Sep 2026 | BY Buddhika Samaraweera

 

  • Electricity Consumers claim increased public burdens 


In the wake of the National System Operator (NSO) Private Limited presenting a new interim power generation plan, the Electricity Consumers’ Association (ECA) has warned that the proposal could end up increasing the burden on electricity consumers and claimed that it appeared to be an attempt to cover up the failures of previous long-term generation plans.


Speaking to The Daily Morning, ECA’s General Secretary Sanjeewa Dhammika said that the Public Utilities Commission of Sri Lanka (PUCSL) should require the NSO to address the shortcomings in the proposed plan and come up with a more practical programme that takes into account generation, transmission and the cost to consumers.


He said that there is a clear contradiction between the renewable energy tariffs approved by the PUCSL last month (August) and the generation figures contained in the new plan. He added that the tariffs currently offered for renewable energy are already making it difficult for local investors to bring new solar and wind power projects into the system. “Instead of obtaining electricity at the lowest possible cost, what is happening is that prices are being determined without sufficient competition and the final cost is passed on to consumers.”  


He also questioned the track record of previous long-term generation plans, alleging that many of the projects had failed to move beyond paper proposals because of practical obstacles including the lack of suitable land, environmental approvals and transmission infrastructure. He said that the new interim plan appeared to have been brought forward partly to cover up those shortcomings. "According to the proposal, around 1,080 megawatts (MW) of battery storage systems could be required by 2029. Battery storage is necessary as renewable energy increases, how can the country afford to develop such a large capacity within three years?"


Dhammika also cautioned that the stability of the national grid could be compromised if large amounts of solar generation are added without sufficient attention to system inertia and other technologies required to maintain grid stability. "A system relying heavily on solar generation and battery storage without adequate supporting infrastructure is similar to “a heavy vehicle without brakes”. A sudden loss of a major power plant could create a serious risk to the stability of the entire system." 

"Previously, there was another generation plan under which Cabinet of Ministers approval had reportedly been obtained for 2,500 MW of generation capacity. What happened to those projects? Many have not been implemented. We admit that we need 70 per cent renewable energy, that transition has to be achieved without raising electricity tariffs and without putting the entire country at risk of blackouts. The PUCSL should therefore ensure that the deficiencies in the interim plan are addressed before it is taken forward and that future generation planning is based on infrastructure that could actually be delivered."


Energy Minister Anura Karunathilaka was not available for comment. 




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