Manila: The Asian Development Bank (ADB) on Monday said it has approved a loan of 200 million U.S. dollars to upgrade Sri Lanka’s power sector infrastructure.
By expanding and modernising infrastructure and incorporating digitalisation solutions, the ADB said the Power System Strengthening and Renewable Energy Integration Project will support Sri Lanka’s goal of increasing integration of renewable energy in the electricity mix, reducing power interruptions, and minimizing transmission and distribution losses.
The ADB said Sri Lanka achieved 100 percent household electrification in 2016. Peak demand reached around 2,800 megawatts (MW) in 2023, including contributions from distributed renewable energy, and is projected to grow significantly by 2030.
While Sri Lanka’s total installed power generation capacity reached 5,191 MW in 2023, about 50 percent of the country’s electricity generation in 2023 came from thermal power plants, underscoring the challenges in transitioning to a more sustainable energy mix.
The project will expand the capacity of transmission and distribution networks, enabling greater integration of renewable energy. It will extend the 220-kilovolt and 132-kilovolt transmission infrastructure with new transmission lines and substations, modernize the medium voltage distribution network, and upgrade grid protection systems, the Manila-based bank said. UNI
