The local renewable energy sector is facing a severe crisis following a government decision to slash electricity purchase tariffs by up to 30%, according to the Renewable Energy Developers Association (REDA), a collective of local investors in the industry.
The Association has warned that the entire sector is now on the verge of collapse, with numerous projects rendered financially unviable under the revised pricing structure.
REDA Chairman Thusitha Peiris criticised the decision as arbitrary and lacking transparency.
“The electricity purchase fee has been artificially reduced without any clear formula or stakeholder consultation. As investors in renewable energy, we are deeply concerned about how these figures were determined,” Peiris said.
He noted that the inability of the Ceylon Electricity Board (CEB) to integrate battery energy storage systems into the national grid has further stifled the growth of solar and other renewable energy solutions. He attributed this failure to a lack of institutional oversight and accountability.
According to REDA, unless the government revisits its tariff policy and removes all taxes and duties on the import of battery energy storage systems, the long-term viability of Sri Lanka’s renewable energy drive will be in jeopardy.
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