Int’l tender opens for SL’s largest battery storage initiative

The Power and Energy Ministry yesterday announced the launch of an international tender for a 250 MW/1,000 MWh Battery Energy Storage System (BESS), one of the country’s largest grid-scale energy storage projects to date, as Sri Lanka looks to strengthen the national grid and support the expansion of renewable energy.

The National System Operator (NSO), operating under the Ministry of Energy, has invited bids from local and international developers to build, own and operate battery storage facilities at 25 grid substations across the island. Successful bidders will enter into 15-year Energy Storage Agreements with the NSO.

Under the tender, developers will establish 10 MW/40 MWh battery storage units at substations including Ambalangoda, Ampara, Bolawatta, Chunnakam, Hambantota, Kurunegala, Matara, Galle and Monaragala, among others. Grid connection will be at the 33kV level.

The request for proposals, issued under reference TR/REP&PM/ICB/2026/001/C, requires developers to design, finance, construct, commission, operate and maintain the projects, while bearing the full cost of grid interconnection and securing all required environmental and statutory approvals.

Proposals are due by August 14, 2026, while tender documents will be available until August 13 for a non-refundable fee of Rs. 150,000 for local bidders and US$ 500 for foreign proponents.

The project forms part of Sri Lanka’s broader efforts to increase renewable energy generation and reduce reliance on imported fossil fuels. The government has set a target of generating 70 percent of the country’s electricity from renewable sources by 2030.

According to the tender document, the battery storage initiative is aligned with Sri Lanka’s National Energy Policy, the country’s commitments under the Paris Agreement and its Carbon Net Zero 2050 Roadmap. Grid-scale battery storage is expected to help integrate a greater share of renewable energy into the electricity system while improving grid stability.

The tender comes amid growing global investment in battery storage infrastructure. The International Energy Agency estimates that 108 gigawatts of battery storage capacity were added worldwide in 2025, up 40 percent from the previous year, as countries accelerate renewable energy deployment.

Industry observers say battery storage is increasingly becoming a critical component of modern electricity systems, allowing excess renewable energy generated during periods of high output to be stored and released when demand rises.