New laws to expedite renewable energy projects
New laws will be introduced to fasttrack the approval process for setting up renewable energy projects which will change the game for Sri Lanka, Minister of Finance Ali Sabry said.
“The Ministry of Power and Energy is working on laws to expedite renewable energy investments,” he told the Business Times on Thursday. He added that there are massive business opportunities in the renewable energy sector and now is the best time for businesses to exploit them and identify the opportunities in the current economic crisis.
“The country generates 60 per cent of energy from thermal, coal and hydro power; it is 53 per cent at full capacity. There is a huge capacity for solar and wind power generation. If done right, it will be a game-changer for the country.”
This came on the back of the Renewable Energy Associations saying that the Ceylon Electricity Board (CEB) should change its stance in terms of meeting their payments. Kushaan Jayasuriya, Director Alpha Solar Energy Systems Ltd told the Business Times that if the renewable energy producers are not paid within the next six months’ time it will be a problem so much so that their equipment will need to be dismantled.
The associations met with the banks last month to find common ground on this as the rising interest rates on their bank loans are unsustainable.
The associations had pointed out that there is no industry without bank financing and the financial institutions need to help them to put this industry back on track.
Many banks said the companies requested loan to be rescheduled and moratoriums. They added that the requests will be looked at on a case-bycase basis.
It is now time for the CEB to own up to its mistakes and actively look at the options that benefit the nation, the associations added.
To trim losses, the CEB and relevant authorities are considering increasing electricity tariffs. The increase will become unbearable to the average consumer, given the escalation of the cost of living in the country, association officials said noting that the proposed 100 per cent increase in electricity tariff will not do much in helping the CEB, if it will continue to operate in its old ways, protecting their own interests. They added that this increase in electricity tariff will increase the revenue of the CEB from Rs.289 billion to Rs.578 billion.
“For the CEB to survive consumer tariff must be increased by 325 per cent and for the country to survive the consumer tariff must be increased to at least 405 per cent,” Windpower Association Secretary Manjula Perera said addressing a joint press conference organised by the Renewable Energy Associations late last month.
Mr. Jayasuriya also stressed that the solar tariff needs to be increased up to Rs. 40 from Rs. 22 to be in line with the dollar depreciation.
Many banks said the companies requested loan to be rescheduled and moratoriums. They added that the requests will be looked at on a case-by-case basis.