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Cabinet Spokesman and Minister Dr. Nalinda Jayatissa
The Government has taken a major step towards strengthening its energy storage capacity, with the Cabinet of Ministers on Monday approving funding for the proposed Maha Oya Pumped Storage Hydropower Plant, one of the largest grid-scale energy projects planned in recent years.
The project, to be implemented by the Ceylon Electricity Board (CEB), is estimated to cost Rs. 243.09 billion and will be financed in line with the provisions of the Public Debt Management Act, No. 33 of 2024. It is designed as a long-term solution to manage excess electricity generated from renewable sources and ensure stable supply during peak demand periods.
The initiative comes amid a rapid expansion of renewable energy, particularly solar and wind, which has created increasing pressure on the national grid due to mismatches between generation and usage patterns.
Addressing the weekly post-Cabinet meeting media briefing on Tuesday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the project will be implemented in two phases, beginning with a development stage followed by full-scale construction.
Once operational, it will function as a critical balancing mechanism for the power system, enhancing grid reliability while enabling greater integration of renewable energy.
Pumped storage hydropower operates by using excess electricity to pump water to an elevated reservoir, which can later be released to generate electricity when needed. This makes it one of the most effective large-scale energy storage technologies currently available.
The Maha Oya project is also expected to complement recent decisions to accelerate battery storage deployment, forming part of a wider strategy to modernise the grid and support sustainable energy development.
