Sri Lanka | Climate Change

Wind Power for More Renewable Power

Sri Lanka, wind power generation, Ceylon Electricity Board, public-private partnership, PPP, private sector participation, capacity building, institutional strengthening, governance, renewable energy sources, climate change

Post-Image

Windmills of Your Mind. Sri Lanka is planning to build a wind farm by 2022 and has undertaken meticulous preparations for harvesting power from the winds.

Project

Sri Lanka: Wind Power Generation Project

Project Cost

$2 million

  • Financing Partner
    • Clean Energy Fund under the Clean Energy Financing Partnership Facility $2 million

Approval Date

March 2016

Completion

February 2019

Partnership Results

Improved capacity of Ceylon Electricity Board in developing future wind power projects with private sector participation
Completed preliminary engineering design and due diligence
Ready procurement packages and bidding documents for the private sector
Prepared road map, with options for private sector participation in developing renewable energy sources
Approval of $200 million investment project to develop a 100-megawatt wind park

Background

Sri Lanka will be throwing wind power into its clean energy mix.

Sri Lanka has reached 99.3% national electrification in 2016, up from a mere 29% in 1990. However, high-priced fuels make electricity costly and pose a serious threat to Sri Lanka’s energy security and the environment. The share of thermal energy sources in power generation has increased in recent years and is expected to rise. The country’s energy sector still struggles with a growing demand for low-cost and reliable electricity.

Sri Lanka needs to develop other renewable energy sources such as wind power, solar power, hydropower, biomass, and other indigenous sources to increase the clean energy mix in power generation. The National Energy Policy and Strategies of Sri Lanka provide a sector road map, policy reform measures, and a basis for a national sector investment program that aims to ensure the sustainable development of energy resources.

In 2016, ADB approved the technical assistance Sri Lanka: Wind Power Generation Project to support the country’s preparations for a large clean energy investment project. It was financed by the Clean Energy Fund (CEF), under ADB’s Clean Energy Financing Partnership Facility (CEFPF). The $2 million project preparatory technical assistance strengthened the capacity of the Ceylon Electricity Board (CEB) to handle the development of future wind power projects with private sector participation. CEB is a state-owned corporation engaged in power generation, transmission, distribution, and supply of electricity. It shares the electricity distribution function with the Lanka Electricity Company (Private) Ltd.

Interventions

ADB’s technical assistance supported the CEB in preparing a feasibility study and preliminary engineering design and conducting due diligence. Specialized software for wind forecast, control and management were procured, and training for the use of these equipment were conducted. Consultations through seminars and workshops were conducted to determine the appropriate locations for wind power development.

Extensive surveys and studies were also conducted to ensure social and environmental safeguards were in place. The technical assistance was in fact extended beyond the original completion date to conduct additional studies, including studies on bird migration, for a more comprehensive environmental assessment.

The technical assistance supported a capacity building program for CEB staff to acquire multi-disciplinary skills needed in undertaking the implementation of wind power projects from identification and scoping through to operation and transfer.

To help prepare the CEB in facilitating public-private partnerships, the technical assistance supported the CEB in:

  • Preparing procurement packages and relevant bidding documents for the proposed CEB wind power generation, and competitive bidding documents for private sector participation

  • Preparing a road map and options for private sector involvement in further developing renewable energy sources in the country

Results

In 2017, ADB approved a $200 million investment project to develop Sri Lanka’s first 100-megawatt wind park to be constructed on Mannar Island in Northern Province. The project will provide the associated infrastructure, such as internal cabling and access roads, energy dispatch control center, and reactors to manage voltage levels.

CEB is providing $56.7 million toward the total project cost of $256.7 million. This investment on the proposed wind park is the first step taken by CEB in establishing benchmarks for large scale wind power development and streamlining the procurement of private investments.

Through the technical assistance, CEB is now ready to facilitate public-private partnership. To catalyze private sector investments, CEB is expected to initiate build-own-operate and transfer models for the development of future wind parks.