SL calls the world to boost renewable energy

• International Competitive Bidding and RFPs issued to develop 100 MW AC solar PV on Build, Own, and Operate basis
• Looks for global experts to construct 132 kV transmission facility on turnkey basis 
• First such call for ICBs post-pandemic amidst ongoing economic crisis 

By Charumini de Silva

The Government has launched an International Competitive Bidding (ICB) to develop the renewable energy sector and expand transmission facilities. 

It is the first call for ICB post-pandemic amidst the ongoing economic crisis, sources told the Daily FT. 

The State-run Ceylon Electricity Board (CEB) has called for a fresh round of Request for Proposals (RFPs) from global firms to develop a 100 MW alternating-current solar photovoltaic power plant on a Build, Own, and Operate (BOO) basis in Siyambalanduwa for three years.

The prospective proponents of the 100 MW AC Solar PV power plant (ground-mounted) should finance, design, supply, construct, test, commission, operate, and maintain on a BOO basis, whilst the land identified will be leased to the successful firm for three years.

The move comes after the Cabinet approved the restructuring of the debt-ridden CEB, as well as a revision of the tariff rates for renewable energy projects.

On 29 July, Power and Energy Minister Kanchana Wijesekera announced the CEB would be restructured, insisting that renewable energy is the way forward. 

The sources also told the Daily FT that the CEB has called for ICBs to construct a 132 kV transmission facility on a turnkey basis from Siyambalanduwa to Monaragala grid substation.

The supplier shall be responsible for design, manufacture, supply, site preparation and services, installation and commissioning of equipment, tests and trials, training, maintenance, and handing over to the purchaser for operation, whilst the land will be leased for the project period.

It was also revealed that the prospective international firm should enter into a 20-year Power Purchase Agreement (PPA), and contract for the development of a transmission facility with the CEB.

The potential international firms are required to send in their proposals before 21 October.

During a stakeholder consultation held last month, it was also revealed that the CEB’s accumulated revenue shortfall is at Rs. 477 billion, whilst the gross liabilities are at a staggering Rs. 612.4 billion as of May 2022.

Minister Wijesekera on Sunday affirmed that the CEB and Ceylon Petroleum Corporation (CPC) will be restructured, despite the strong opposition from the trade unions.