ECONOMYNEXT – Sri Lanka’s power minister Kumara Jayakody mentioned the nation can’t have low cost power if the Ceylon Electrical energy Board is pressured to purchase energy at excessive costs from non-public events and households, amid calls to lift costs paid for solar energy.
“On one facet you might be query us why we aren’t bringing down electrical energy payments,” Minister Jayakody informed parliament.
“On the opposite facet you might be asking why renewable costs are being introduced down. In no world can that sort of enterprise be operated. It’s not doable to purchase at excessive costs and promote at low costs.
“If there’s a subsidy it must be paid with taxes collected from the folks.”
He was responding to criticism from opposition chief Sajith Premadasa that costs paid to new renewable energy producers have been lowered.
“The worth paid to solar energy was lowered from 37 to 27 rupees,” he mentioned. Then it was lowered from 27 to 24 rupees. Now it has been lowered from 24 to 18 rupees.
“So this damages (paludu kireemak) photo voltaic or renewable energy. When the value paid to them is lowered, micro, small and mid-sized producers can be damage and be utterly discouraged.”
“I wish to recommend that the value paid to solar energy be introduced again to the earlier degree.”
Minister Jayakody mentioned the previous costs can’t be paid to new renewable energy producers.
“The price of photo voltaic panels have fallen by 30 %,” he defined. “The rupee has strengthened to 300.”
“That profit has to go to the folks. No one has misplaced cash.”
Nonetheless traders who didn’t put some cash of their very own (excessive debt to fairness ratio) could also be having greater prices and can’t make massive earnings, Minister Jayakody mentioned.
“They don’t have one cent,” he mentioned. “They take loans for all the pieces. However there is no such thing as a loss for real builders. We’re getting sufficient functions.”
In a latest bid for 50×2 MW wind vegetation, Vidullanka with David Pieris bid round 3.77 US cents per kiloWatt hours (much less that 11.50 rupees).
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The CEB additionally has to speculate closely on the grid to accommodate renewables and likewise forestall blackouts from intermittent power with out power and likewise with out reactive energy in some circumstances.
“We additionally need to develop lots of infrastructure for that (to accommodate renewable energy),” he mentioned.
“No occasion or previous administrations have left any cash for us.”
The CEB has simply closed tenders for Battery Vitality Storage System (BESS) which can value round 17 rupees a unit. A number of transmission strains in distant areas to take photo voltaic and wind energy has been additionally tendered financed by AIIB.
As well as, current renewable power builders have been supplied 45.80 rupees for battery saved power delivered within the evening.
There was lots of curiosity and competitors for tenders, Minister Jayakody mentioned.
“We welcome that,” he mentioned.
It was the 2015-2019 administration below then Deputy Minister Ajith Perera introduced aggressive tendering, even to small vegetation, ending the controversial feed in tariff which critics say have been manipulated upwards by lobbying.
The feed-in-tariffs manipulation went as far as to have protectionist rent-seeking with greater tariffs for native inputs, at one time, like within the constructing supplies and maize commerce.
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Nonetheless, the the controversial feed-in-tariffs with out aggressive bidding was later introduced again by the following administration. The present administration is being criticized for decreasing the feed-in tariffs.
Minister Jayakody tabling information on one other query mentioned the price of the CEB owned coal plant have been 20.82 rupees a unit, massive hydro 2.30 rupees, furnace oil 46.94 and naptha 20.82 rupees. CEB’s wind plant 12.12 rupees.
Coal is topic to taxes, and there’s a capital value.
Non-public diesel mixed cycle agency power that may be dispatched was 80.20 in December 2024 and furnace oil 50.37 rupees.
Renewable, intermittent power (no capability cost) was 14.13 rupees on common for small hydro, wind 15.73 on common, Floor mounted photo voltaic was 19.49 rupees.
Rooftop photo voltaic was 27.06 rupees as much as 500kW, 23.18 rupees above 500 kW.
City waste power was 36.20 rupees (additionally out there within the evening).
(Colombo/Nov02/2025)
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