Plantation firms accelerate net zero push with Rs.5bn renewable energy investment

Sri Lanka’s plantation companies are stepping up the investments in renewable energy as part of a broader transition towards net zero emissions, committing more than Rs.5 billion for the clean energy projects in what the industry leaders describe as a defining shift for the sector.

The Planters’ Association of Ceylon said the Regional Plantation Companies (RPCs) have collectively installed over 30 MW of renewable energy capacity across the estates, spanning solar, mini-hydro, biomass, biogas and waste-heat recovery systems.

The push toward low-carbon operations marks a significant moment for the industry, which is undergoing what the association described as “one of the most consequential transformations in its 172-year history”.

“With the global buyers, financiers and regulators pushing for low-carbon supply chains, the move towards net zero has become both an environmental duty and a commercial necessity,” the association said.

Energy transformation has emerged as the most advanced pillar of the sector’s decarbonisation drive. Several RPCs have invested in estate-level renewable energy projects to power the tea factories and estate operations. Companies such as Talawakelle Tea Estates PLC and Agarapatana Plantations PLC have developed mini-hydro projects that generate electricity from the estate water resources, providing stable power supplies for the factory operations. Some factories across the sector now operate entirely on renewable electricity. Biomass continues to underpin the sector’s thermal energy needs. Plantation groups, including Browns Plantations PLC and Agalawatte Plantations PLC, report that the biomass boilers meet between 85 percent and 95 percent of the factory heat requirements, significantly reducing reliance on furnace oil. The solar rooftop installations are also becoming more common across the tea factories, estate offices and worker housing, while efficiency upgrades such as variable speed drives, improved dryer insulation, waste-heat recovery systems and LED lighting are helping reduce the energy consumption across estate operations.

At the same time, the plantation companies are strengthening their emissions monitoring frameworks as part of the transition to climate-aligned production. Several RPCs now measure the Scope 1 and Scope 2 emissions, while some have begun assessing the Scope 3 emissions linked to the logistics and value chains. The companies are also aligning with the international standards such as ISO 14064-1 and ISO 50001.

Digital monitoring systems are increasingly being deployed to track the energy use and emissions at estate and factory level, enabling the companies to move from periodic reporting to continuous emissions management.

Beyond energy, the sector’s net zero strategy is also extending to land use, conservation and estate communities.

The RPCs report expanding biodiversity corridors, conservation zones and riparian buffers across the plantation landscapes, alongside tree planting and agroforestry programmes aimed at strengthening carbon sinks and improving soil health. Dedicated fuelwood plantations are also being developed to ensure sustainable biomass supply while reducing pressure on the natural forests.

The plantation companies have also introduced energy-efficient cookstoves, improved housing energy systems and water conservation infrastructure within the estate communities, delivering both environmental and social benefits.