Sri Lanka: Wind Power Generation Project
The Asian Development Bank is working with Sri Lanka to develop energy resources and increase access to low cost energy for the entire population. The project is helping to increase supply by raising the share of renewable energy, particularly wind power.
South Asia Department
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|Project Name||Wind Power Generation Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Energy / Renewable energy generation - wind
|Gender Equity and Mainstreaming||No gender elements|
The impact of the investment project will be increased access to clean and reliable power supply enhanced by 2025. The outcome will be clean power generation increased. The outputs of the investment project are:
(i) Wind power generation increased. This output consists of three subcomponents: (i) 100 MW wind farm constructed in Mannar Island in the Northern Province; (ii) wind park infrastructure developed that involves construction of the wind park's internal medium voltage infrastructure, internal cabling, access roads, and other arrangements; and (iii) a renewable energy dispatch control center established to forecast, control, and manage intermittent 100 MW wind power generation.
(ii) System reactive power management improved. This includes installation of 100 megavolt-ampere reactive (MVAr) reactors at the 220 kilovolt (kV) level at the Anuradhapura grid substation in the North Central Province and a 50 MVAr reactor at the 220 kV level at the Mannar grid substation in the Northern Province to manage voltage levels within the planning limits and practical operational requirements, and ensure reliable operation of the wind park.
(iii) Capacity of CEB in project engineering design review and supervision strengthened. Expert consultancy services will be procured to strengthen CEB's capacity in project engineering design, review, and supervision. These advisory consultancy services will assist CEB in ensuring engineering oversight of wind turbine installation, commissioning and testing activities, and technical certification of contractor's activities throughout the construction period.
|Project Rationale and Linkage to Country/Regional Strategy||
Sri Lanka's energy sector performance has achieved a national electrification ratio of 99.3% (2016) up from 29% in 1990. However, the sector continues to struggle in meeting the growing demand for electricity at sufficiently low cost and acceptable reliability. The share of thermal power in the generation mix remains high at 67.2% in 2016 as the entire demand growth has been served by oil-fired thermal (31.5%) and coal (35.7%) generation. Although 32.7% of the total generated power provided to the grid in 2016 was from renewable sources, including 24.6% large hydropower, 5.2% small hydropower, 2.4% wind power, and 0.6% other sources, the high share of oil-fired thermal generation makes electricity expensive due to high fuel prices and poses a serious threat to the country's energy security and the environment. There is an urgent need to develop other clean energy sources in addition to hydropower, undertake loss reduction efforts, and address energy efficiency issues. Diversification to renewable energy sources, such as wind and solar energy, will improve the country's energy security and the environment. In particular, developing wind power generation by both the public and private sectors and through public private partnerships provides substantial opportunities to reach the country's goal of increasing the share of nonconventional renewable energy generation to 20% of the total generated power by 2020.
The Government of Sri Lanka aims to ensure the sustainable development of energy resources by improving the power supply systems to guarantee that the entire population has access to electricity services. Sri Lanka has a national sector investment program that is based on the National Energy Policy and Strategies of Sri Lanka. The policy and strategies include a sector road map, and policy and reform measures. To reduce the current high cost of thermal power generation and attain cost recovery, the government developed 900 MW of low cost coal-fired capacity that became fully operational in 2014. The government aims to increase supply capacity from renewable energy sources and potential future conversion of the oil-fired plants to gas-fired plants. The policies and incentives for developing renewable energy sources exist in the country. The increase to 20% of power generation from nonconventional renewable energy sources, including their current generation, will be in addition to 24.6% (2016) of conventional hydropower and will ensure that, in the future, a substantial portion of electricity is generated by domestic clean energy sources. This will address the critical issue of energy security.
|Impact||Access to clean and reliable power supply in Sri Lanka enhanced by 2025 (Sri Lanka Energy Sector Development Plan for a Knowledge Based Economy, 2015 2025)|
|Description of Outcome||Clean power generation increased|
|Progress Toward Outcome||Some implementation delays due to COVID-19 related issues. ADB recently approved reallocation for additional wind turbines, capacity expansion of transmission infrastructure, and feasibility study for renewable park amounting to about $50 million. CEB is working on the revised implementation schedule.|
|Description of Project Outputs||
1. Wind power generation capacity increased
2. System reactive power management improved
3. Capacity of CEB in project engineering design review and supervision strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||Physical installation of 30 wind turbines is completed, associated works in progress. Design review and site preparation in progress.Design review of wind power generation completed and supervisory support in progress.|
|Geographical Location||Mannar District|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Extensive consultations with the government and stakeholders, including local communities, local authorities, focal groups, civil society groups, will be undertaken to ensure participatory approach. The stakeholders will be consulted throughout the design stage during the project preparatory technical assistance and the ensuing project implementation on the relevant issues, including environmental, social and other issues that may affect communities and poor people.|
|During Project Implementation||The consultation process with the stakeholders will continue during project implementation as per Sri Lankan regulations.|
|Consulting Services||Consultants will be recruited following Guidelines on the Use of Consultants by ADB and Its Borrowers, March 2013.|
|Procurement||Procurement will follow international and national competitive bidding depending on an estimated value of procurement packages. Advance contracting will be used for procurement. Retroactive financing may be considered to expedite project implementation at government's request.|
|Responsible ADB Officer||Kolantharaj, Jaimes|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Energy Division, SARD|
Ceylon Electricity Board
3rd Floor, G.O.B.A. Bldg.
#50,Sir Chittampalam A. Gardiner Mawatha
Colombo 02, Sri Lanka
|Concept Clearance||23 Mar 2016|
|Fact Finding||14 Feb 2017 to 24 Feb 2017|
|MRM||09 Jun 2017|
|Approval||24 Oct 2017|
|Last Review Mission||-|
|Last PDS Update||03 Dec 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|24 Oct 2017||22 Nov 2017||22 Feb 2018||30 Jun 2022||30 Jun 2024||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||256.70||Cumulative Contract Awards|
|ADB||200.00||07 Sep 2021||135.22||0.00||68%|
|Cofinancing||0.00||07 Sep 2021||121.47||0.00||61%|
|Status of Covenants|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
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Requests for information may also be directed to the InfoUnit.
Helping Sri Lanka to go greenMannar Island is a dry and barren peninsular in Sri Lanka’s arid zone where the climate holds great potential for renewable energy such as wind and solar power.
ADB Boosting Renewable Energy in Sri Lanka with 100 MW Wind ParkADB's Board of Directors has approved a loan of $200 million with sovereign guarantee for Ceylon Electricity Board to develop Sri Lanka’s first 100-megawatt wind park.
|Tender Title||Type||Status||Posting Date||Deadline|
|3585-SRI: Wind Power Generation Project [ICB/CEB/PD-MWPP/2021/1]||Invitation for Bids||Closed||10 Mar 2021||28 Jul 2021|
|3585-SRI: Wind Power Generation Project [CEB/AGM/PR/2017/IFB/REACTOR]||Invitation for Bids||Closed||26 Mar 2018||12 Jul 2018|
|Loan No. 3585-SRI: Wind Power Generation Project [CEB/PD-MWPP/2018/1 Mannar Wind Power Project - Phase 1] REBIDDING||Invitation for Bids||Closed||14 Mar 2018||09 May 2018|
|Consultancy Service Contract: Project Engineering Design Review and Supervision Support to CEB during Construction, Commissioning and Testing of the 100 MW Mannar Wind Power Project - Phase 1||Firm - Consulting||Closed||18 Dec 2017||16 Jan 2018|
|Loan No. 49345-SRI: Wind Power Generation Project [CEB/PD-MWPP/2017/1]||Invitation for Bids||Closed||22 Jun 2017||20 Sep 2017|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|VARIABLE SHUNT REACTORS||Loan 3585||14 May 2019||CONSORTIUM - SIEMENS LTD (IND) & DIMO (SRI)||PLOT 6A, SECTOR 18, MARUTI INDUSTRIAL AREA, HUDA, GURUGAM-122015 HARYANA INDIA INDIA||Ceylon Electricity Board||SUPPLY OF GOODS||8060076.34||8060076.34|
|CONSULTANCY SERVICES: PROJECT ENGINEERING DESIGN REVIEW AND SUPERVISION SUPPORT TO CEB||Loan 3585||25 Feb 2019||COWI A/S||PARALLELVEJ 2, DK-2800 KONGENS LYNGBY DENMARK DENMARK||Ceylon Electricity Board||CONSULTANCY||878996.86||876748.50|
|PACKAGE 1: CONSTRUCTION OF 100MW SEMI DISPATCHABLE WIND PARK IN MANNAR ISLAND||Loan 3585||29 Nov 2018||VESTAS ASIA PACIFIC A/S||HEDEAGER 42, 8200 AARHUS N, DENMARK DENMARK||Ceylon Electricity Board||TURNKEY||127794933||127794933|