At the Ceylon Chamber of Commerce Economic and Investment Summit, one key issue was left unanswered.
President Anura Kumara Dissanayake spoke extensively about expanding the transmission network, but did not address the modernisation and expansion of the distribution network, the backbone of distributed renewable energy generation.
The question came from moderator and Vice Chairperson Bingumal Thewarathanthri, who raised the proposed change in the feed-in tariff methodology.
The distinction matters. Of approximately 3,000 MW of installed solar capacity, more than 2,550 MW has reportedly been developed through the feed-in tariff framework, mostly rooftop solar. This has displaced costlier generation, with an estimated avoided cost exceeding Rs. 22 per unit, benefiting approximately 7.9 million consumers.
The average project is reportedly under 50 kW, and approximately 160,000 rooftop installations are connected to the grid. Households, small businesses and commercial establishments drove this growth.
Meanwhile, the 100 MW Siyambalanduwa project was reportedly awarded at approximately US$0.08 per unit, around Rs. 28, against approximately Rs. 17 or less for rooftop solar. It has reportedly yet to deliver electricity.
On curtailment, there are reportedly more than 33,000 distribution transformers, and fewer than 500 may face significant difficulties, about 1.5%. A transformer-by-transformer assessment, network upgrades and battery storage could be less disruptive than blanket restrictions.
Battery storage benefits appear directed at larger investors, and consumers also bear approximately Rs. 2 per unit in thermal capacity payments.
“We cannot expect citizens to invest their savings under one set of rules and then change the goalposts midway through the match.”