Energy Analyst Dr. Vidhura Ralapanawe claims that Sri Lanka’s local renewable energy developers receive unfavorable terms compared to foreign investors.
Speaking at a National Chamber of Commerce press conference, he highlighted discrepancies in contracts, citing projects like Siyambalanduwa and Mannar wind farms.
He noted that while developers account for up to 5% uncompensated curtailment, excess curtailment beyond that must be compensated at the same rate by the CEB.
Dr. Ralapanawe criticized the feed-in tariff equation, which assumes 100% of power generation will be accepted by the CEB, without accounting for curtailment.
He argued that including a 5% curtailment clause in contracts would make them bankable.
He warned that excessive curtailment—projected to reach 23% in some years—would lead to financial losses for developers.
Additionally, he pointed out that while low-tariff projects face harsh conditions, contracts in dollar terms and fossil fuel agreements receive more favorable terms.
