Renewable energy: Over $ 3.5 b worth of FDIs in limbo
Posted on February 15th, 2025
Courtesy The Morning
- Developers urge presidential action to address project delays
A consortium of 43 Renewable Energy (RE) developers, collectively representing over $ 3.5 billion in Foreign Direct Investment (FDI), has called for the intervention of President Anura Kumara Dissanayake to address significant delays in implementing RE projects in Sri Lanka.
In a letter written on Tuesday (11), the developers, who were provisionally approved under the 2021 Expression of Interest (EOI) process, have expressed concerns over critical process delays and the prolonged implementation timeline.
The consortium includes a mix of prominent Sri Lankan companies such as Hayleys, Asia Power, Senok, Akbar Brothers, and international investors like United Solar Electrical Ltd., Envision Energy, and PowerChina.
The group has appealed to the President, urging action in accordance with the provisions of the Sri Lanka Electricity Act and the Sri Lanka Sustainable Energy Authority (SLSEA) Act, to accelerate project development.
In 2021, the State Ministry of Solar, Wind, and Hydro Power Generation Projects Development, alongside the SLSEA and the Ceylon Electricity Board (CEB), invited proposals for renewable energy projects greater than 50 MW.
Out of the initial 533 applicants, 136 projects were shortlisted and 47 developers were selected, with 43 developers receiving provisional approval by February 2024.
These developers have noted that they have made substantial investments in the country’s RE sector, aiming to support Sri Lanka’s energy security, economic growth, and climate change goals.
However, the developers have emphasised that delays in the process are hindering their ability to deliver on their commitments, which include clean, affordable, and sustainable energy solutions for the country.
With significant international backing, the developers are seeking the Government’s immediate attention to ensure the timely implementation of these crucial projects, which are aligned with the nation’s long-term energy strategy.
The developers have further highlighted that these renewable energy projects would not only help reduce Sri Lanka’s environmental footprint but also contribute to the country’s socioeconomic development.
Ministry of Energy Secretary Prof. Udayanga Hemapala stated that the ministry was currently working on the EOI projects and anticipated a positive response.