President Anura Kumara Dissanayake says the government is considering introducing concessions for domestic rooftop solar users to encourage the installation of battery storage systems.
Addressing the Sri Lanka Economic and Investment Summit on Monday (12), the President acknowledged the difficulties faced by domestic rooftop solar users, particularly due to taxes imposed on smaller battery storage systems.
He explained that the government currently provides concessions for battery storage systems with capacities exceeding 1 megawatt, while batteries below this capacity remain subject to taxation.
The President said the government is exploring the possibility of extending concessions to domestic users, including those requiring smaller battery storage systems with capacities of around 200 to 500 kilowatts.
However, he noted that a technical challenge remains in distinguishing batteries specifically designed to store solar-generated electricity from other types of batteries.
He expressed confidence that once this issue is resolved, the government would be able to proceed with its proposed concessions for domestic solar users.
Meanwhile, President Dissanayake rejected claims that the government was opposed to renewable energy, highlighting the expansion of solar power generation since assuming office.
He said Sri Lanka had approximately 1,400 megawatts of installed solar power capacity when the government came into power, while an additional 1,500 megawatts had been added over the past two years.
Agreements have also been signed for a further 1,100 megawatts of solar power capacity, which is expected to be completed next year.
Accordingly, the President said the government expects to have added approximately 2,600 megawatts of solar power capacity by next year.
Highlighting the challenges of expanding ground-mounted solar projects in a country with limited land resources, he explained that generating one megawatt of solar power requires approximately three acres of land.
As an alternative, the government has begun focusing on floating solar power projects using reservoirs and other water bodies.
The President cited the five-megawatt floating solar project at Ibbankatuwa, which occupies approximately 10 acres, as an example of this approach.
He also revealed plans to develop a floating solar project at Randenigala through a public-private partnership, while Moragahakanda, Samanalawewa and Chandrika Wewa have been identified as potential locations for similar projects.
Meanwhile, the President highlighted the importance of battery storage systems in addressing fluctuations in renewable energy generation.
He explained that solar electricity production is generally higher during the afternoon, sometimes exceeding the capacity of the electricity system to accommodate the additional supply.
Following recommendations from energy experts, the government is focusing on storing excess solar-generated electricity during the daytime for use at night.
The President said tenders had already been called for 160 battery storage units, with 13 expected to be completed by the end of November.
He added that tenders had also been called for another 250 battery units, with the latest procurement process resulting in a price reduction of approximately Rs. 10 compared to the earlier tender.
The government is also considering extending battery storage opportunities to existing operators, he said.
Commenting on the country’s renewable energy performance, President Dissanayake said renewable sources currently account for approximately 69% of Sri Lanka’s electricity generation, with the share reaching around 70% to 75% on certain days, depending on prevailing conditions.
He further revealed that Sri Lanka had not used any diesel for electricity generation during the previous four consecutive days, describing this as a significant achievement in the country’s transition towards renewable energy.
The President reiterated that the government’s primary objectives are to ensure an uninterrupted electricity supply and provide electricity to consumers at an affordable cost.
He expressed confidence that the country’s renewable energy expansion programme is progressing successfully towards achieving these goals. (Newswire)
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