Sri Lanka has world’s highest tariffs for renewable energy: analysis

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Oct 19, 2011 (LBO) – Average prices paid in Sri Lanka to renewable energy firms in wind, mini-hydro and biomass are among the highest in the world, an analysis by an industry expert has shown. Wind power plants in Sri Lanka are paid an average of 19.97 rupees a kiloWatt hour compared to the equivalent of 7.11 rupees in South Korea, 9.84 rupees in Taiwan, 13.69 in Uganda and 18.34 in Thailand, an analysis by Tilak Siyambalapitiya, an industry consultant shows.

Sri Lanka offers a standard power purchase contract for small renewable plants of under 10 MegaWatts.

Siyambalapitiya said attempts were now being made to allow larger wind plants where capital costs would be lower.

Biomass firms are paid 20.70 rupees a unit in Sri Lanka compared to the equivalent of 4.74 rupees in Thailand, 6.50 in India’s Andra Pradesh state, 9.85 in Malaysia, 10.46 in Madya Pradesh state, 11.37 in Uganda, 16.00 in USA’s Minnesota state. Among the tariffs for renewable mini-hydro firms were among the lowest paid in Sri Lanka at an average of 13.32 rupees compared to 5.11 rupees for Thailand, 8.39 for Malaysia, 11.04 for USA and 12.18 for Germany.

Tariffs for renewable are paid under complex formulas