Cabinet nod to secure US$200 mn from ADB to upgrade power infrastructure

The Cabinet green-light has been granted to secure a US$ 200 million loan from Asian Development Bank (ADB) to upgrade Sri Lanka’s power sector infrastructure, to enhance the reliability of transmission and distribution networks, leading to greater integration of renewable energy.

The ADB has agreed to grant US$ 200 million in two separate loans for Ceylon Electricity Board (US$150 million) and Lanka Electricity (Pvt) Ltd (US$ 50 million) respectively, under two agreements on Treasury guarantee. 
Accordingly, President Anura Kumara Dissanayake in his capacity as the Minister of Finance, Planning, and Economic Development this week sought the approval of the Cabinet of Ministers  to enter into a security agreement with the ADB to obtain the US$ 200 million loan.

The project is expected to improve the two utility providers’ ability to integrate and manage renewable energy systems, adopt digital solutions, and enhance hosting capacity of rooftop solar installations. 

According to ADB Country Director for Sri Lanka Takafumi Kadono, this project is in line with the government’s goal of increased integration of renewable energy in the electricity mix, reduce power interruptions, and minimise transmission and distribution losses.

The project will expand the 220-kilovolt and 132-kilovolt transmission infrastructure with new transmission lines and substations, modernise the medium voltage distribution network, and upgrade grid protection systems. 
“The project will introduce Sri Lanka’s first grid-scale battery energy storage system at the transmission level, establish a renewable energy centre to forecast and monitor renewable energy generation, and implement network automation systems with SCADA and remote terminal units, providing operators with real-time data and alerts to ensure efficient power delivery,” the ADB said. (NF)