The Government has been actively advancing its renewable energy sector with a focus on solar power to enhance energy security and reduce dependence on imported fossil fuels. With an ambitious goal of generating 70 percent of its electricity from renewable sources by 2030, a significant portion of this energy is expected to come from solar power.
Energy Minister Eng. Kumara Jayakody said that the Government is committed to the continued acquisition of solar energy. “We are well on our way to meeting our target of 70 percent of our electricity needs from renewable sources and solar energy is a vital part of that plan,” he said.
However, the renewable energy journey has not been without its challenges. Political shifts and allegations of corruption have hindered progress in some renewable wind and solar energy projects. Nonetheless, the Government is focused on accelerating the sector’s development to meet its ambitious renewable energy targets and ensure a sustainable energy future for Sri Lanka.
Major step
A glimpse of the Maha Oya Pumped Storage Hydropower Project Rising in Kegalle
In line with these plans, the Ceylon Electricity Board (CEB) is laying the groundwork for the country’s first ‘Water Battery’ project, the Maha Oya Pumped Storage Hydropower project. This energy storage system which uses water to store and release energy is a major step towards energy sustainability.
Energy Minister, Eng Jayakody told Parliament recently that the Government has no intention of restricting, reducing or halting the acquisition of solar energy.
“We are well on track to meet our goal of deriving 70 percent of our electricity from renewable sources. Solar energy is crucial in achieving this target,” he said.
The Minister said that the Energy Ministry is implementing a program to streamline and regularise the situation. According to the country’s energy policy, 2,000 megawatts are expected to be added to the national grid in the near future.
However, the country’s renewable energy projects have faced challenges, including political shifts and allegations of corruption which have hindered progress. Despite these setbacks, the Government is focused on accelerating the development of the renewable energy sector.
Chief Engineer at Kelanitissa Combined Cycle Power Plant and CEB media spokesman, Dhammika Wimalarathna, said that based on its Long-term Generation Expansion Plan (LTGEP), the Ceylon Electricity Board (CEB) is making strides towards implementing what would be the country’s first ‘Water Battery’ project—the Maha Oya Pumped Storage Hydropower project.
Energy storage and distribution
Chief Engineer at Kelanitissa Combined Cycle Power Plant
and CEB media spokesperson
Dhammika Wimalarathna
This energy storage system utilises water to store and release energy, offering a promising solution to address the intermittent nature of renewable energy sources such as solar and wind. The project aims to enhance the stability and reliability of the national grid by efficiently managing energy storage and distribution.
The Maha Oya project will be a large-scale and transformative initiative aimed at integrating renewable energy into the national grid. “This 600 MW project will enhance grid stability by storing surplus renewable energy from solar and wind sources, thus supporting Sri Lanka’s goal of generating 70 percent of its electricity from renewables by 2030,” Wimalarathna said.
The project will be crucial in reducing the country’s dependence on fossil fuels and lowering carbon emissions, marking a significant step towards energy independence. “By addressing the intermittent nature of solar and wind power, the project will provide essential inertia support, enhance grid reliability, and reduce reliance on costly fossil fuels,” he added.
The Maha Oya Pumped Storage Hydropower project will operate as a massive energy reservoir, storing surplus power generated from solar and wind when production exceeds demand and releasing it back into the grid during peak times. The project’s reservoirs, featuring a remarkable 516-metre gross head and a 2.5-kilometre tunnel, will facilitate seamless energy storage and release. However, like any battery system, pumped storage hydropower does experience energy losses, with an expected efficiency reduction of around 20percent.
Drive economic growth
The project is expected to drive economic growth, create jobs, and promote environmental sustainability. Last month, the CEB hosted a pivotal meeting at its headquarters, bringing together international funding agencies, including the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), as well as other development partners, both in person and online. The event marked the official unveiling of the financial roadmap for the Maha Oya project, positioning it as a unique investment opportunity with significant environmental benefits.
During the meeting, energy authorities emphasized the need for long-term funding from these agencies to minimise impacts on electricity tariffs and ensure affordability for consumers. The international funding will be crucial to making this project a reality, helping Sri Lanka move closer to its renewable energy goals while maintaining energy affordability for its citizens.
CEB chairman, Dr. Tilak Siyambalapitiya highlighted the importance of securing international financing in the form of a conventional long-term loan to mitigate the project’s impact on consumer tariffs. While private investment models were considered, they were ultimately deemed less favourable for electricity customers. Such models would lead to higher electricity costs due to the investor’s need to front-load capacity charges to meet loan repayment obligations. By securing long-term funding through development partners, the project can remain affordable while advancing Sri Lanka’s renewable energy objectives.
Courtesy: CEB
“We actually presented them the project’s financial road map. The basic project cost alone is estimated at US 450 million dollars, excluding contingencies, interest during construction (IDC), and other associated costs. Given the urgency of enhancing Sri Lanka’s energy infrastructure, it is planned to be carried out as an accelerated project,” said Eng. Rathnayaka.
The feasibility study of the project has already been completed and the CEB has found a location for the Water Battery project in the Kegalle district.
Renewable energy is increasingly becoming a significant source of electricity generation in the country. Hydropower, the dominant renewable energy source, currently contributes around 35 to 40 percent of the nation’s total electricity generation. However, its output is subject to seasonal variations and fluctuates with changing climate conditions.
Wind energy is still in the early stages of development. As of now, Sri Lanka’s installed wind capacity stands at approximately 250 megawatts. Meanwhile, solar energy has been expanding rapidly, with an installed capacity of around 500 MW, contributing about three to four percent of the national grid.
The Lunugamvehera Solar Power project, completed in 2019, has been generating approximately 10 MW of power since its inception, though it faced delays due to bureaucratic hurdles, regulatory approval challenges, and funding issues.
Together, hydropower, wind, and solar energy account for roughly 40 to 45 percent of the national grid. The Government is all keyed up to increase this share to 70 percent by 2030. While the contribution of renewable energy has grown significantly, there is still room for improvement. The Government is working to address the barriers hindering the acceleration of these projects.
Water Battery
This is how the “Water Battery project” works: During times when there is surplus electricity- from renewable sources like solar or wind- this energy is used to pump water from a lower reservoir to a higher one.
When the electricity demand is high, the stored water is released from the higher reservoir to flow back down to the lower reservoir through turbines, generating electricity as it moves.
The process of moving water uphill using excess electricity and letting it flow downhill to generate electricity, acts like storing energy in the form of potential energy. The stored water is essentially the”battery.”
Maintain balance
When there is a fluctuation in supply or demand, the “water battery” can quickly release or absorb electricity to maintain balance. It can generate electricity very quickly, making it an ideal backup during peak demand or when intermittent sources (like solar or wind) are not producing enough power. It provides a renewable and sustainable way to store energy without relying on chemicals or other materials, unlike traditional batteries. Water can be stored for extended periods, unlike many battery technologies that degrade over time. By storing renewable energy, pumped storage helps reduce the need for fossil fuel-based power plants.
Among the notable renewable energy projects in Sri Lanka is Hambantota Wind Power Project, which has been developed in phases, with the first phase completed in 2016. To date, the project has contributed around 10 MW to the grid, with a long-term goal of reaching 100 MW.
The Pooneryn Wind Power project, with its first phase completed in 2017, has added approximately 30 MW to the grid as of 2023. The second phase, aimed at reaching 100 MW, has been delayed by land acquisition issues and financial challenges.
The pace of both solar and wind power projects has been further hindered by long and complex approval processes for environmental clearances and permits. Frequent changes in Government policies and regulations, along with delays in policy implementation have created uncertainty for investors and developers.
Obtaining land for large-scale solar and wind farms has also proven difficult due to land ownership disputes, inadequate land policy frameworks, and resistance from local communities.
The Maha Oya Pumped Storage Hydropower project is more than just a major infrastructure undertaking; it represents a steadfast commitment to securing the country’s energy future. By reducing reliance on imported fossil fuels, stabilising electricity prices, and paving the way for a sustainable energy economy, the project promises to deliver lasting benefits to the people.
