ENERGY SECTOR
Shenal Handunge
THE CLEAN ENERGY SHIFT
Navigating a complex yet trending transition towards cleaner renewal energy
Factors driving momentum in renewable energy adoption in Sri Lanka
Driven by rising energy demand, costly fossil fuel imports, and falling solar and wind costs, the country is urgently pursuing its 2030 target of sourcing 70 percent of electricity from renewables.
Renewable energy sources indicating growth in the region
Solar power is the clear frontrunner – with abundant year-round sunlight, rooftop and utility scale projects expanding rapidly; wind energy also holds promise along coastal and highland corridors while hydropower remains important but is geographically constrained.
Evolution of the renewable energy sector over the past five years
It has matured rapidly, driven by surging rooftop solar adoption, market entry by independent power producers, supportive net metering policies, and growing backing from international donors and private investors.
Emerging global trends shaping the sector’s future in South Asia
Declining battery costs, emerging smart grids and green hydrogen exploration are transforming the energy landscape while regional trading – exemplified by India, Bhutan and Nepal – offers a potential model for South Asia.
Influence of consumer awareness on renewable energy solutions
Growing awareness, fuelled by cost savings and environmental values – especially among younger generations – is boosting support for rooftop solar adoption.
Technologies poised to transform the sector in the near future
Advanced battery storage, AI powered energy management, green hydrogen for industry and hybrid solar wind storage systems are set to reshape the renewable energy space.
Role of hybrid renewable systems in energy generation
Hybrid systems enhance supply stability and reduce intermittency, making them especially vital for reliable rural and island electrification.
Importance of energy storage in accelerating renewable energy integration
Storage is essential – it balances supply, enables higher renewable penetration and reduces reliance on fossil fuel backup plants.
Policy changes needed to fast track renewable energy growth in Sri Lanka
Streamlined approvals, clear feed in tariffs and stronger grid investment policies are urgently needed to fast track growth.
Investor sentiment towards renewable energy in the region
Investor sentiment is positive with interest from regional and global green funds but regulatory uncertainty keeps some investors cautious.
Regulatory barriers slowing down renewable energy deployment
Lengthy permitting processes, grid connection delays and inconsistent tariff structures remain key barriers.
Government efforts to create an enabling environment for renewable energy innovation
It can foster innovation by ensuring transparency, offering incentives for R&D and supporting long-term stable policies.
Funding mechanisms to best support renewable energy expansion in developing markets
Green bonds, blended finance and multilateral development bank support are suited for developing markets.
Main challenge facing renewable energy developers
Grid integration and capacity constraints remain the key challenge, alongside policy uncertainty.
Impact of grid capacity and modernisation for the future
Grid modernisation is critical: smart grids, digital monitoring and flexible transmission systems are essential for scaling renewables.
Opportunities for public-private collaboration in the sector
Collaboration can drive large-scale projects, joint R&D initiatives and community microgrids.
Addressing the intermittency challenges of renewable energy sources
Intermittency can be addressed through storage, hybrid systems and regional power trading.
Role of community based renewable energy projects in national energy security
Community projects enhance energy security by empowering rural communities, reducing transmission losses and diversifying supply.
Shift in balance between traditional power sources and renewables
Renewables are expected to surpass fossil fuels in share by 2035 with fossil fuels declining to a backup role.
Steps to accelerate the transition from fossils to clean energy
Stronger policy enforcement, private investment incentives and awareness campaigns.
Sri Lanka’s position compared to neighbouring countries in renewable energy adoption
It is ahead in rooftop solar adoption compared to some peers, yet behind India in utility scale projects.
Geopolitical factors in renewable energy development in South Asia
Energy security concerns and fossil fuel dependence will influence development while regional cooperation could mitigate risks.
Regional partnerships that can strengthen sector capacity and knowledge sharing
Partnerships through SAARC, bilateral projects with India and knowledge sharing platforms could strengthen capacity.
