CEB signs power purchase agreement for Sahasdhanavi Power Plant

Colombo, Aptril 11 (Daily Mirror) - The Ceylon Electricity Board (CEB) announced the signing of a Power Purchase Agreement (PPA) for the Sahasdhanavi Power Plant.

The plant will be built, owned and operated by Sahasdhanavi Limited, with ownership transferring to the CEB after 25 years.

In a statement, the CEB described this agreement as a significant milestone in Sri Lanka’s pursuit of reliable and affordable electricity for families and businesses.

The 350 MW Sahasdhanavi Combined Cycle Power Plant, approved by the Public Utilities Commission of Sri Lanka (PUCSL), is expected to begin construction soon. It will deliver electricity to the national grid within 30 months under Open Cycle operation, transitioning to full Combined Cycle operations after an additional 12 months.

This plant will play a vital role in supporting Sri Lanka’s growing renewable energy sector, particularly during nighttime and low-wind periods. Operating on re-gasified liquefied natural gas (R-LNG), it will provide flexible, on-demand power to help balance the intermittency of solar and wind energy generation.

By 2028, Sahasdhanavi and similar plants will fully transition from diesel to R-LNG, reducing fuel costs by approximately 50%, significantly cutting emissions, and ensuring grid reliability as Sri Lanka continues to expand its renewable energy capacity. 

R-LNG is positioned as the key transition fuel in the country's shift toward a renewable-powered future.