ADB approves USD 200m to upgrade Sri Lanka’s power grid

25 November 2024 02:33 pm Views - 416

Colombo ,November 25 (Daily Mirror) - The Asian Development Bank (ADB) said on Monday it has approved a USD-200-million loan to modernise Sri Lanka's power sector infrastructure, improving network reliability and supporting renewables integration.

“By expanding and modernising infrastructure and incorporating digitalisation solutions, this project will support the government’s goal of increased integration of renewable energy in the electricity mix, reduce power interruptions, and minimise transmission and distribution losses,” said ADB country director for Sri Lanka Takafumi Kadono

The project will expand the 220-kV and 132-kV transmission infrastructure with new transmission lines and substations, upgrade the medium voltage distribution network and introduce Sri Lanka’s first grid-scale battery energy storage system at the transmission level.

Of the financing, USD 150 million will be allocated to Ceylon Electricity Board (CEB) and USD 50 million to Lanka Electric Company (LECO), the only utilities in the country that deliver power to end-consumers.

Sri Lanka achieved full household electrification in 2016, ADB noted. Its peak demand reached 2,800 MW in 2023 and is expected to grow a lot by 2030. Of the 5,191 MW total installed capacity in 2023, half was generated from thermal power. The government aims for 70% renewable electricity by 2030 and carbon-neutral power generation by 2050.