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Sri Lanka

Sri Lanka has a FIT program, established by law under the Sri Lanka Sustainable Energy Authority Act, No. 35 of 2007, covering solar, geothermal, biomass, hydro, and wind energy.

Summary

Following Policy Directions for the Power Sector announced by the Ministry of Irrigation and Power in August 1997, the Ceylon Electricity Board has developed Guidelines for small hydropower plants, whereby the electricity produced can be sold to the Board under a standardized Small Power Purchase Agreement. In October 2006, Sri Lanka declared its National Energy Policy and Strategies.

Under the new National Energy Policy and Strategies, a target of at least 10% of electricity supplied to the grid from “non-conventional renewable energy” (NCRE) by 2015 has been set.

The Policy states that NCRE resources will be promoted by providing a level playing field for developers to compete through transparent procurement processes. Necessary incentives will be provided and access to green funding, including the Clean Development Mechanism, will be facilitated to develop these resources, even if their economic viability is marginal.

In 2007, the Energy Conservation Fund for and behalf of the Ministry of Power and Energy set out the tariff structure for the purchase of energy.  This is presently under revision.  The responsibility of regulating tariffs related to electricity undertakings has been vested in the Public Utilities Commission of Sri Lanka (PUCSL)  under the Electricity Reform Act No. 28 of 2002. 

In October 2007, the Sri Lanka Sustainable Energy Authority Act, No. 35 of 2007 came into effect.  A primary objective of the Sustainable Energy Authority Act is the development of ‘renewable energy resources’ defined as “sources of kinetic or thermal energy stemming from either solar or geothermal activity, which can be harnessed within the territory of the Republic of Sri Lanka, without affecting the ability of the future generations to harness it for their use” including “biomass energy, hydro energy, solar energy and wind energy.”

Read an analysis of the new Sri Lankan Policy and Sustainable Energy Authority Act.

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