Colombo, Sri Lanka – India has started financing for three hybrid power projects on islands off the northern coast of Jaffna – the latest in a series of efforts to expand energy access to communities not connected to Sri Lanka’s national grid. The projects are under Indian Grant Assistance, and an initial payment of $1 million was handed over on August 29, 2024, said a statement from the Indian High Commission in Colombo.
This will be achieved by Hybrid Power Projects in Delft, Nainativu, and Analaitivu, whereby generation of energy in these respective island communities is via solar and wind. The total grant for these projects is $11 million, and it is expected that the implementation will be completed by early March 2025. Indian High Commissioner Gopal Baglay formally handed over the first payment to Dr. Sulakshana Jayawardena, Secretary of the Ministry of Power and Energy, and Sanjeewa Jayawardena, Chairman of the Sri Lanka Sustainable Energy Authority.
Background and Development of the Project
These hybrid renewable energy projects were at the conceptual stage when India and Sri Lanka signed an MoU in March 2022 to develop the energy infrastructure of the islands. Subsequent to signing of the said MOU, SLSEA had awarded the Implementation contract to M/s U Solar Clean Energy Solutions Pvt. Ltd in March 2024.
These projects would enable sustainable energy solutions to the islands that today have either limited or no access to the national grid of Sri Lanka. The hybrid power-a mix of solar and wind energy-is considered very important for a greater degree of energy security and sustainability for the island communities. This is expected to be completed by late April 2025.
India’s Role in Sri Lanka’s Energy Sector
India’s involvement in these projects testifies to the commitment of the country for supporting Sri Lanka in the energy sector through the development of renewable sources of energy. This also forms part of the greater strategy for regional cooperation that, in general, strengthens the bilateral relations between India and its neighbors. The projects also underline India’s thrust on sustainable development and initiative for the spread of clean energy throughout the region.
Besides the hybrid power projects in Jaffna, India and Sri Lanka have been cooperating in a number of energy projects. Another MoU on the development of storage facilities and a regasification unit in Kerawalapitiya was inked this month. The project to be developed by LTL Holdings Ltd of Sri Lanka and India’s Petronet LNG is expected to supply Liquefied Natural Gas to several power plants in Sri Lanka, including Yugadhanavi and Sobadhanavi.
LNG Infrastructure Development
The LNG infrastructure development program, which is to be completed within the next 18 months, has come up with a proposal to meet the ever-growing demand for LNG in Sri Lanka by making the required investment in its infrastructure. This would be expected to reduce energy costs associated with thermal power generation, enable integration of renewable energy easily into the national grid, and lead towards establishment of a domestic LNG market in Sri Lanka.
These are thus seen as crucial for the diversification of energy and security of supplies in Sri Lanka. The share by India in those projects also symbolizes India’s growing energy footprint at the international level, specially in the South Asian region.
Strategic Importance
These are two worthy energy projects, considering the prevailing energy demands in Sri Lanka: hybrid power projects in Jaffna and development of LNG infrastructure. The hybrid power projects are so important to these isolated islands, on which depend the living standards of the people and also support economic development.
These joint initiatives of India and Sri Lanka in these energy projects indicate a formidable commitment by both countries to overcome energy problems in an environmentally-friendly way. Success with these projects may act as a model for other similar initiatives in various other parts of the region.
Conclusion
The funding and involvement of India in the hybrid power projects on the islands off northern Jaffna mark a critical juncture toward ensuring increased energy access for isolated communities in Sri Lanka. With the grant assistance by India, these projects are likely to be completed by April 2025 and will provide renewable energy solutions to the islands of Delft, Nainativu, and Analaitivu.
These form part of the broader initiatives by India to support Sri Lanka’s energy sector, while fostering regional cooperation in sustainable development. Cooperation between the two countries in the energy sector is likely to bring long-term benefits for both countries in terms of energy security, economic development, and environmental sustainability.
Source: Indian High Commission in Colombo