FINANCIAL CHRONICLE — The Cabinet of Sri Lanka has given the green light to a plan for the acquisition of 300 MW of Battery Energy Storage Systems (BESS) aimed at enhancing the stability of renewable energy development, as stated by Minister Nalinda Jayatissa.
The Public Utilities Commission of Sri Lanka (PUCSL) has accelerated the timeline for this initiative, moving it from 2032 to the 2028-2029 period. This adjustment comes in response to the observation that peak energy demand is rising two years ahead of the projections outlined in the Long-Term Power Generation Plan.
To address this growing need, the Cabinet has approved two distinct procurement strategies. The primary component of this initiative involves the establishment of 25 independent battery energy storage systems. Each system will boast a capacity of 10 MW/40 MWh, contributing a total of 250 MW to the overall capacity approved.
These systems will be directly integrated into the medium-voltage distribution network managed by the Ceylon Electricity Board (CEB). According to the approved plan, the 25 projects will operate under a Build, Own, and Operate (BOO) model. The private entities selected for these initiatives will oversee operations for a period of 15 years, providing a sustainable decentralized storage solution for the national grid.
The second decision taken by the Cabinet focuses on a capacity of 50 MW, designed to complement the existing renewable energy framework. In contrast to the standalone units, this capacity will be acquired by connecting battery systems to already operational solar power plants on-site.
This segment of 50 MW will be secured through a competitive bidding process. The procurement will be coordinated by the Renewable Energy Procurement and Operations Supervision Division of National System Operator (Private) Limited, which is the successor to the CEB. This strategy aims to enable solar energy producers to store surplus energy generated during the day for consumption during peak demand periods.
Jayatissa emphasized to journalists that this dual approach is crucial, as solar energy production has already surpassed the integration limits established in the long-term plan for 2023-2042. “Establishing a battery storage system will significantly enhance our ability to promote renewable energy,” Jayatissa remarked. “Merely installing more solar panels will not suffice unless we implement these batteries to store energy effectively.”
By differentiating the procurement into both standalone distribution units and on-site solar integration, the government aims to maximize the utilization of renewable energy while ensuring that the grid can effectively manage the fluctuations associated with solar power. (Colombo/Apr1/2026)
