Wednesday Nov 04, 2026
Wednesday Nov 04, 2026
Wednesday, 4 November 2026 00:24 - - {{hitsCtrl.values.hits}}
The Cabinet of Ministers has approved awarding a multi-currency contract to a $ 6 million joint venture between Ceylex Engineering Ltd., and Xingneng Electric Power Construction Co., Ltd., to upgrade the Kolonnawa Grid Substation for the country’s first utility-scale battery energy storage facility.
The contract covers the development of a 100 MW/100 MWh Battery Energy Storage System (BESS), which is expected to boost grid stability and facilitate the integration of a higher share of renewable energy into the national electricity network.
Addressing the weekly post-Cabinet media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the facility was proposed in line with the country’s long-term electricity generation expansion plans.
The total contract value (excluding taxes), is nearly $ 6 million comprising components of $ 1.27 million, € 2.61 million ($ 2.98 million) and Rs. 555.13 million ($ 1.65 million).
The project forms part of an Asian Development Bank (ADB)-funded initiative to strengthen the national power network and support the integration of renewable energy into Sri Lanka’s electricity mix.
The initial approval to upgrade the Kolonnawa Grid Substation under the ADB-funded renewable energy integration project was granted on 2 September 2024.
Subsequently, the Government called for international competitive bids to select a contractor, attracting submissions from four international bidders.
“Following an evaluation of the bids, a High-Level Procurement Committee recommended the Ceylex Engineering-Xingneng Electric Power Construction joint venture as the substantially responsive bidder, paving the way for the Cabinet-approved contract award,” he added.
The proposal to this effect submitted by the Power Minister Anura Karunathilake.
