Lanka Business Online

Renewed Deal

February, 15 (LBO) – Sri Lanka is to shortly unveil a new tiered tariff framework for renewable energy suppliers giving existing mini-hydros windfall sweeteners to change-over, officials said. Sri Lanka would be offering cost-based technology-specific and three-tiered tariffs for mini-hydro, biomass and wind energy.

Mini-hydro standardized power purchase agreements already signed with the Ceylon Electricity Board (CEB) for 15 years is to be extended for 20 years if the operators opt for the new three-tired tariff structure which pays high rates during the initial years.

“We are advising existing mini-hydro operators to move onto the new structure,” Nishantha Nanayakkara, President of the Grid Connected Small Hydro Power Developers Association told LBO.


Under the three tiered structure, a higher rate would be paid in the first six years when the hydro operators need more cash-flows to service debt.

Hydro-operators could get more than 8.50 rupees per unit (kilo Watt hour) under the new structure, which is much higher than the 6.94 rate published by the CEB on February 14.

The CEB pays mini-hydros on an ‘avoided cost’ of thermal generation based

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