By Energy Ministry Seeks Cabinet Approval for Revised Sampur Solar Power Tariff
The Energy Ministry will seek Cabinet approval next week for a newly negotiated tariff of US cents 5.97 per kilowatt-hour (kWh) for electricity sold to the national grid by the proposed 135 MW Sampur solar power plant, a joint venture between India’s NTPC Ltd and the Ceylon Electricity Board (CEB). This revised rate, down from an initial US cents 7 per kWh, aligns with the government’s goal of reducing electricity generation costs, according to Energy Ministry Secretary Udayanga Hemapala.
The Sampur project is structured differently from the Adani Green Energy Sri Lanka Limited (AGESLL) wind power plants planned for Pooneryn and Mannar. The Sri Lankan government is also pursuing a tariff revision for these Adani projects, which were initially approved at US cents 8.26 per kWh in May 2024.
Last month, the Attorney General’s (AG) Department informed the Supreme Court that the government intends to revoke the Cabinet’s May 2024 decision on the Adani projects and re-evaluate the tariff. A new Project Committee and Cabinet-Appointed Negotiating Committee were proposed to oversee the negotiations, but they are yet to be appointed. Prof. Hemapala stated that a meeting with the AG’s Department is scheduled for next week to determine whether discussions can proceed before court clearance.
Currently, four fundamental rights petitions and one writ application are pending against the Adani wind power projects. The government is targeting a tariff closer to US cents 5 per kWh for these projects, reinforcing its stance that all future energy agreements must remain below US cents 6 per kWh to ensure cost-efficient electricity generation.
These developments highlight Sri Lanka’s shifting energy policy, focusing on cost reductions, renewable energy investments, and renegotiations of foreign power deals to secure affordable electricity for the country.
