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Sri Lanka

Govt’s solar power deal will drain billions from consumers

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The Electricity Consumers’ Association (ECA) says the government is attempting to approve 10 large-scale solar power projects through a Cabinet subcommittee, bypassing standard regulatory procedures.

Speaking at a media briefing in Colombo, ECA Secretary Sanjeewa Dhammika warned that the move could impose an additional financial burden of Rs. 33,600 on each of Sri Lanka’s 6.9 million electricity consumers.

Dhammika claimed that the transmission costs, which by law should be borne by private companies developing solar projects, are now being shifted to the public.

The government has reportedly estimated these costs at over Rs. 233 billion, a sum that would ultimately be recovered from consumers.

He further alleged that the government has agreed to purchase solar power from the selected projects at Rs. 18 per unit, despite previously paying Rs. 17.60 per unit and having access to alternative suppliers offering over 300 MW at lower rates.

“This is not a solar power promotion – it’s a new way to burden the people for the benefit of a few companies,” Dhammika said, comparing the situation to the controversial LNG agreement that replaced diesel power generation.

According to his calculations, when factoring in the government’s Rs. 233 billion commitment over five years, the actual cost per unit of electricity could rise to Rs. 56.63.

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