Sri Lanka’s Smart Grid Project to Receive $34 Million from France

Total cost of this project is estimated to be $260 million

October 22, 2018


In an effort to reduce the transmission losses at its state utility Ceylon Electricity Board (CEB), Sri Lanka is slated to receive ₹2,529 million (~$34.41 million) from French Agency for Development (AFD). The sum will be utilized by CEB to implement the Tranche II of the green power development and energy efficiency improvement investment program.

This is part of a $260 million project – Green Power Development and Energy Efficiency Improvement Investment Programme – to improve energy savings by upgrading the island’s transmission infrastructure with a smart electricity grid and smart metering. AFS is providing the sum to finance a part of the total project cost and the balance will be borne by the Ceylon Electricity Board.

CEB’s program includes three major components:

  • Transmission infrastructure enhancement
  • Efficiency improvement of medium voltage network and
  • Demand side management improvement for energy efficiency through development of a smart grid and metering pilot sub-project

AFD has already provided financing of ₹1,854 million (~$25.23 million) for the implementation of Tranche 1 of the program. Total cost of this project is estimated at $260 million. The Asian Development Bank has already provided $150 million loan to finance a part of the project.

In this connection, R H S Samaratunga, secretary of the ministry of finance and mass media on behalf of the Government of Sri Lanka and Martin Parent, country director of AFD, signed a credit facility agreement on October 17, 2018 at the Ministry of Finance and Mass Media.

Ceylon Electricity Board has an ambitious capital investment plan for next 10 years to maintain 100 percent electrification while improving supply quality and reliability.

CEB has been pushing for green energy in Sri Lanka. In August, 2017, the board had floated a global tender for a 10 MW solar project to be developed in Vavunathivu in Sri Lanka. The power purchase agreement was signed for a 20-year period. The CEB had fixed LKR (Sri Lankan Rupee) 18.37 (~$0.122)/kWh as the upper tariff ceiling for this tender.

Image credit: Flickr

Garima is a staff reporter with covering renewable energy news. Prior to Mercom, Garima worked as a journalist with The Times of India and The New Indian Express. She received her Master’s degree in Environmental Science from the University of Nottingham and PG Diploma degree in journalism from the Times School of Journalism.