||Clean Energy and Network Efficiency Improvement Project
|Project Type / Modality of Assistance
|Source of Funding / Amount
|Grant 0303-SRI: Clean Energy and Network Efficiency Improvement Project|
|Clean Energy Fund under the Clean Energy Financing Partnership Facility
|Loan 2892-SRI: Clean Energy and Network Efficiency Improvement Project|
|Ordinary capital resources
|Loan 2893-SRI: Clean Energy and Network Efficiency Improvement Project|
|Concessional ordinary capital resources / Asian Development Fund
|TA 8167-SRI: Capacity Building for Clean Power Development|
|Technical Assistance Special Fund
||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change
||Governance and capacity development
Private sector development
|Sector / Subsector
- Electricity transmission and distribution
- Energy efficiency and conservation
- Energy sector development and institutional reform
- Renewable energy generation - solar
|Gender Equity and Mainstreaming
|| No gender elements
||The project includes three components: (i) transmission infrastructure; (ii) network efficiency improvements; and (iii) pilot solar rooftop power generation investments in the Eastern, North-Central, Central, Northern, Southern, and Western provinces of the country.
|Project Rationale and Linkage to Country/Regional Strategy
||Sri Lanka has achieved a substantial improvement in the energy sector, with a national electrification ratio of 91% in 2011 compared with 29% in 1990. The longer-term challenge for the country is to reduce its high dependence on expensive fossil fuel energy. The energy sector struggles to meet growing demand for electricity at sufficiently low cost and acceptable reliability levels. The share of thermal energy in the power generation mix has increased from 6% in 1995 to 54% in 2011. Demand growth has been generally met by expensive oil-fired thermal generation, which is not the solution to the country's energy security and environment protection in the long term. Diversification of the generation mix including from renewable energy sources, improvement of network efficiency, and supply and demand side management can help to address this issue. To enable future planned power supply increases, meet growing demand in the regions, and integrate renewable energy sources into the grid, it is necessary to strengthen the transmission network, especially in conflict-affected areas of the Northern and Eastern provinces. Another challenge is to improve system reliability and reduce technical losses. An enhanced 33 kilovolt (kV) medium voltage network is needed to expand power supply in rural areas, where many poor households remain unconnected or have poor quality of electricity supplies. The new infrastructure will also support development of clean energy. Improvement of transmission and distribution infrastructure will address electricity needs in the post-conflict areas and directly contribute to their development. The government intends to improve the energy sector performance and continue pursuing financial, managerial, and institutional reforms in line with the Sri Lanka Electricity Act, 2009.
||Reliable, adequate, and affordable power supply for sustainable economic growth and poverty reduction
|Description of Outcome
||Improved clean power supply, efficiency, and reliability in the delivery of electricity
|Progress Toward Outcome
|Description of Project Outputs
1. Transmission infrastructure strengthened in the Northern province
2. Efficiency of transmission and medium voltage distribution networks improved
3. Solar rooftop power generation developed
4. Advisory and capacity building support provided for wind and solar power development on a PPP basis
|Status of Implementation Progress (Outputs, Activities, and Issues)
1. Contracts are awarded and Implementation is ongoing with delays.
2. Contracts are awarded and Implementation is ongoing.
3. Contracts are awarded and Implementation is ongoing.
||CEB and SEA have prepared initial environmental examinations for their components and held public consultations. During construction and operation, steps will be taken to minimize environmental impacts. CEB has observed the route-selection criteria in the national regulations and has adopted best environmental practices. Adequate provisions have been made for the environmental mitigation measures, monitoring requirements, and their associated costs in the environmental management plans (EMPs) prepared for each subproject. CEB has sufficient capacity to implement the safeguard measures incorporated in the EMPs. Mitigation measures related to construction and specified in the EMPs will be incorporated into civil works contracts. The contractors will have primary responsibility for implementing the mitigation measures during construction, but CEB will be responsible for and periodically report to ADB on overall implementation of its site-specific EMPs. CEB and SEA will adhere to ADB's Safeguard Policy Statement (2009) and local and government environmental regulations. The project is classified category B for environment. CEB has submitted the semi annual environment safeguards reports for July - December 2016.
||None of the project components will have any significant social safeguard impacts. The transmission and distribution lines primarily cross public and unused lands. Where croplands are affected, adequate compensation will be paid. Project construction will be carried out during the crop off-seasons. Where new grid substations are built on commercial and private lands, adequate compensation will be paid to their owners. The project is classified category B for involuntary resettlement impacts. CEB prepared a resettlement plan for the transmission infrastructure and transmission and distribution efficiency improvement components.
||No impact on Indigenous Peoples and the project is classified category C for impacts on indigenous peoples.
|Stakeholder Communication, Participation, and Consultation|
|During Project Design
||Consultations with stakeholders and communities in project areas were conducted during project design.
|During Project Implementation
||Consultations with stakeholders and communities in project areas are ongoing