Loss of nearly Rs.2bn due to CEB’s renewable energy curtailments, industry warns

• Grid Connected Solar Power Association says arbitrary shutdowns of large renewable plants have led to daily losses of about 4mn power units and nearly Rs.2bn overall
• It says these curtailments violate contracts, calls for immediate compensation and policy action
• Industry leaders highlight delays in implementing Cabinet-approved battery energy storage systems, despite approved tariffs and tax concessions

Prabath Wickramasinghe

Kishan Nanayakkara PIX BY WARUNA WANNIARACHI

By Shannine Daniel

The Ceylon Electricity Board’s (CEB) arbitrary curtailment of power generation in the local renewable energy plants is causing a loss of almost Rs.2 billion, the Grid Connected Solar Power Association (GCSPA) said yesterday.

According to GCSPA President Prabath Wickramasinghe, since February 2025, the CEB has been arbitrarily curtailing the power generation at all large renewable energy plants on weekends and public holidays, from 9:00 a.m. to 3:00 p.m. 

Wickramasinghe also revealed that this week, the renewable energy plants were asked to shut down on weekdays as well. 

When asked the reason for these arbitrary curtailments, Wickramasinghe said this is done due to the “excess of solar 

power” in the country.   

“This is why we asked for a battery storage system to store the excess electricity. This is what the other countries are doing,” Wickramasinghe said.

The GCSPA also noted that the approval for battery energy storage systems (BESS) has been delayed. 

The BESS would allow the local investors and renewable energy developers to store excess electricity during the day and release it during the peak demand time, between 6:30 p.m. and 10:30 p.m.

The GCSPA noted that the Cabinet had approved a price of Rs.45.80 per unit in June last year and the Finance Ministry had provided the tax concessions in September last year. 

However, despite the Power and Energy Ministry instructing the CEB five months ago to implement these decisions immediately, no actions have yet been taken, the GCSPA stated. 

Wickramasinghe also noted that the industry is also experiencing a loss of around four million units of power on a daily basis.

The GCSPA also noted that the monthly income of the ground-mounted solar power plant owners has dropped by around 15 percent, since last year.

The renewable energy power plants are classified as “Must Run” facilities because unlike the oil-burning power stations, which are compensated through a capacity charge even if they do not operate, the renewable energy plants would only be paid if dispatched, said GCSPA ex-committee member Kishan Nanayakkara. 

“They have to be dispatched to cover up the construction and operations costs. Hence, in the Power Purchase Agreement contracts, they are considered as “Must Run” facilities. Due to the CEB’s recent actions, these contracts have been unilaterally violated,” Nanayakkara stressed.

He added that the GCSPA is calling on the CEB and Power and Energy Ministry to ensure that the renewable energy plants are compensated. He revealed that even though there had been many discussions about compensation, nothing has been received yet. 

“This is an instantaneous solution because any other, even battery storage, will take time. If we call for tenders, it will easily take a few years to make this happen,” Nanayakkara noted.