The Ceylon Electricity Board (CEB) is gearing up to introduce a new price formula for solar power while abolishing the tariff revision introduced to the sector last year, The Sunday Morning learns.

Accordingly, it is reliably learnt that the relevant Cabinet paper will soon be submitted by the Power and Energy Ministry.

The decision was taken at a recent discussion held at the Presidential Secretariat considering the grievances submitted by local solar power developers following the new tariff revision introduced last year, it is learnt.

Responding to a question, CEB Chairman Nalinda Illangakoon said the decision had already been made and that they were waiting for Cabinet approval to proceed with the price formula.

According to him, when considering solar prices, the exchange rates and other related prices will also be considered as per the formula.

As per the three-tier tariff options suggested by the committee, the tariffs for tier 1 (year 1-8), tier 2 (year 9-15), and tier 3 (year 16-20) are Rs. 32.28, Rs. 17.52, and Rs. 11.95 for mini hydro, Rs. 29.79, Rs. 14.99, and Rs. 9.89 for wind, Rs. 33.74, Rs. 16.98, and Rs. 11.21 for solar, Rs. 17.92, Rs. 9.02, and Rs. 5.95 for biomass, Rs. 17.92, Rs. 9.02, and Rs. 5.95 for agricultural and industrial waste, Rs. 57.02, Rs. 28.69, and Rs. 18.94 for municipal solid waste, and Rs. 13.44, Rs. 6.76, and Rs. 4.46 for excess power from agriculture/industrial waste of the same industry, respectively.

In response to the new price formula, National Chamber of Commerce Renewable Energy Council Chairman Lakmal Fernando said: “We have requested to revise it every year because of the high volatility, which affects the tariff. On top of that, even if it gives double the price, as long as the CEB is not paying the investors, there is no future for the country. First the CEB should get its priorities right and start paying for renewables before fossil fuel. It is killing the renewable industry so it can absorb more and more fossil fuel.”

The Government has established a 70% renewable energy target for 2030, with the CEB finally issuing new long-term generation plans adjusted for the target.