President Anura

Kumara Dissanayake

• Cabinet nod to finalise agreement between Sri Lanka and India to establish solar power plants 
• Solar plant to be implemented in two stages: 50 MW solar 
• power plant in phase I, followed by 70 MW expansion in phase II
• Project to be developed on BOO basis, as a JV between CEB and India’s National Thermal Power Corporation; partnership will be managed under Trincomalee Power Company
• AKD says SL not rejecting FDI via Adani Green Energy project but want only a lowest cost

President Anura Kumara Dissanayake on Wednesday said the 120 MW solar power plant in Sampur, Trincomalee will begin construction work in April.

Speaking at the 15th post-Budget forum organised by the Daily FT in partnership with the University of Colombo MBA Alumni Association with Standard Chartered Bank as strategic partner, he noted that reducing production costs is a key priority, with a particular focus on lowering energy expenses.

“We are commencing the construction work of a 120 MW solar power plant in Sampur by April,” he said.

Dissanayake added that the Government recently awarded a contract to a wind power plant which will generate an electricity unit at $ 4.65 per kWh — which is commendable as against $ 8.26 cents offered by India’s Adani Green Energy and agreed by the previous Government.

“We are only keen to get renewable energy at a lower cost and not rejecting foreign direct investment,” Dissanayake said in reference to cancellation of the previous contract with Adani after which the latter withdrew from the 500 MW venture with an investment of $ 1 billion.

“At present we spend about $ 13 cents to generate one unit of electricity. Our objective is to reduce that to $ 8 cents, and to do so, we need to look at renewable energy sources which can generate an electricity unit below $ 6 cents,” he added.

Separately, the Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday announced that the Government has approved finalising an agreement between Sri Lanka and India to establish two solar power plants with a combined capacity of 120 megawatts in Sampur, Trincomalee.

Addressing the weekly post-Cabinet meeting media briefing yesterday, he said the initiative will be implemented in two stages — a 50 MW solar power plant in the first phase, followed by a 70 MW expansion in the second phase.

“The project will be developed on the basis of build, own, operate (BOO), as a joint venture between the Ceylon Electricity Board (CEB) and India’s National Thermal Power Corporation (NTPC),” he added.

The partnership will be managed under Trincomalee Power Company Ltd., an entity originally set up to implement a coal power project in Sampur, which was later abandoned in favour of renewable energy alternatives.

The Cabinet of Ministers approved the proposal submitted by Energy Minister Kumara Jayakody to take necessary steps to commence the first phase of the solar power project.

Dr. Jayatissa said the initiative aligns with the country’s broader strategy to increase its renewable energy capacity and reduce dependency on fossil fuels.