• PUCSL recommends to Treasury Secy. citing time needed to obtain & analyse data

The Public Utilities Commission of Sri Lanka (PUCSL) has recommended not to implement the recent revision of tariff rates for new rooftop solar and renewable energy projects until they gather and analyse the relevant data.

In a letter addressed to Secretary to the Ministry of Finance, Economic Stabilisation and National Policies, and Treasury Mahinda Siriwardana, PUCSL's Director General Damitha Kumarasinghe said that the Ceylon Electricity Board (CEB), had requested the PUCSL's approval for the revised tariff rates for rooftop solar and renewable energy projects as per the direction given by the Cabinet of Ministers through the Cabinet decision bearing number 24/1159/621/059 dated 2 July 2024.

As per the General Policy Guideline for the Electricity Industry issued by the Ministry of Power and Energy under Section 5 of Sri Lanka Electricity Act, No. 20 of 2009, he said that Sri Lanka's current energy policy has set a goal for renewable energy adoption in the electricity sector – 70% of electricity generation from renewable sources by 2030. 

He further said that the Long-Term Generation Expansion Plan (LTGEP) (2023-2042) approved by the PUCSL, has identified technology specific targets to achieve the above policy goal, including the rooftop and ground mounted solar capacity to be added to the system. 

“The PUCSL has observed that the solar and renewable energy targets of the LTGEP have not been achieved thus far. The target up to 2024 is 1,660 megawatts (MW), but only 1,167 MW has been achieved so far. Further, the target for the year 2024 is 483 MW, but only 261 MW has been achieved so far while the target for next year 2025 is 505 MW, with an additional 3,508 MW of solar photovoltaic capacity still required by 2030. Therefore, the PUCSL is of the view that the proposed reduction of the prevailing solar rooftop tariff may hinder the achievement of national energy policy targets.” 

Kumarasinghe further said that the PUCSL had held discussions with the relevant stakeholders such as the CEB, the Lanka Electricity Company, the Sri Lanka Sustainable Energy Authority, the Solar Industry Association, the Federation of Renewable Energy Developers, and the Solar Companies, and obtained their views in this regard. 

“The PUCSL also studied a large number of consumer complaints received with regard to the tariff revision. The PUCSL requires further information to analyse and verify the data pertaining to the revision. Therefore, the PUCSL recommends to continue the preexisting tariff rates (ones existing prior to the last tariff rates revision) until the PUCSL gathers the required information, analyses it, and advises the Cabinet,” he said, and hence requested Siriwardana to inform the Cabinet regarding the recommendation.

The Commission, through a letter dated Monday (15), has also informed CEB Acting General Manager Dr. Narendra de Silva that they (Commission) have recommended to the Cabinet not to implement the tariff revision in question in the said context.

A proposal presented by the Minister of Power and Energy Kanchana Wijesekera for the revision of the tariff rates paid for the said projects through the feeding tariff had recently been approved by the Cabinet. The revised tariff rates were to be applied to all new projects from 1 July. The revised rooftop tariff – 20 years flat rate is Rs. 27.06 up to 500 kilowatts (kWs) and Rs. 23.18 for over 500 kWs while the revised feeding tariff – 20 years flat rate is Rs. 25.48 for solar, Rs. 30.53 for mini hydro, Rs. 29.86 for wind, and Rs. 52.77 for biomass.