Courtesy RenewablesNow

Sri Lanka has secured a USD-30-million loan from the International Development Association (IDA) of the World Bank to support the upgrade of the national grid and enable the adoption of more renewable energy.

Author: Gerry Machen. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

The agreement, signed in early December by Treasury Secretary Harshana Suriyapperuma and World Bank Division Director David Sislen, forms the first phase of a USD-60-million programme for the Secure, Affordable, and Sustainable Energy for Sri Lanka Project.

The initiative will address technical constraints that currently limit the grid capacity and will support the government’s target of generating 70% of its electricity from renewables by 2030. It will be complemented by a planned World Bank payment guarantee facility designed to mobilise private capital for new renewable energy projects.

The loan is expected to be directed to the Ceylon Electricity Board. The electricity company will also lead the project, in coordination with the relevant authorities, including the ministry of energy.

In October, the government of Sri Lanka also secured USD 52 million from the Asian Infrastructure Investment Bank (AIIB) to strengthen its power infrastructure and support renewables growth.