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Project Rationale and Linkage to Country/Regional Strategy |
Sri Lanka has improved its energy sector performance and achieved a national electrification ratio of 98% in 2014 compared with 29% in 1990. However, high dependence on expensive fossil fuel energy continues. Sector challenges include meeting growing demand for electricity at a low cost and acceptable reliability, and attaining long-term sustainability. The increase in the share of thermal oil-fired energy in power generation, from 6% in 1995 to 35% in 2014, creates a high cost base and is not a viable and sustainable solution for energy security and environment protection in the long term. Diversification of the generation mix primarily to renewable energy sources, improved network efficiency, reduced technical losses, and supply- and demand-side management are required. The transmission network needs to be expanded and modernized. Improvement of the 33-kilovolt (kV) network is required to improve system reliability and expand power supply into the rural areas to serve poor households. |
