Government Implementing Programme to Destroy Solar Power Sector by Bowing to Fuel Power Plant Mafia, Says Sajith Premadasa

Opposition Leader Sajith Premadasa has accused the government of implementing a policy that would undermine Sri Lanka’s solar power sector, claiming that the government is favouring the interests of the fuel and thermal power generation sector.

Premadasa said that there was broad public agreement that the maximum possible share of Sri Lanka’s electricity generation should come from renewable energy.

He claimed that while the present government had spoken about achieving 100% renewable energy when it was in the Opposition, it had now reduced its emphasis on renewable energy after coming to power and had become influenced by what he described as commissions linked to the fuel and thermal power plant sector.

According to Premadasa, this had resulted in a policy that was putting renewable energy, particularly solar power, at risk.

Concerns Over Net Metering, Net Accounting and Net Plus

Premadasa said the Secretary to the Ministry of Power had recently responded to a letter from the Public Utilities Commission of Sri Lanka (PUCSL) and had given what he described as an unlawful instruction to remove Net Metering and Net Accounting and implement the Net Plus system.

He argued that the Ministry Secretary did not have the authority to issue such an instruction, claiming that decisions of this nature should be made through the appropriate regulatory process involving the PUCSL and consultation with the public.

PUCSL's published information describes Net Metering as a system in which solar generation is offset against consumption, while Net Accounting allows excess generation to be sold to the grid. Under Net Plus, electricity generated and electricity consumed are treated separately, with the consumer receiving payment for electricity supplied to the grid while paying the normal electricity bill for consumption.

Premadasa made these remarks during a meeting with stakeholders in the solar power sector at the Office of the Opposition Leader, held to discuss the issues currently affecting the industry.

He further claimed that various arguments were being used to undermine solar power, including arguments based on the claim that electricity generated during the day was being purchased at a lower cost while electricity was consumed at higher rates at night.

According to Premadasa, solar energy experts had logically demonstrated that these arguments were incorrect.

“Government Policy Could Cost the Country Rs. 25 Billion”

Premadasa said claims that the expansion of solar power would harm other businesses were unfounded.

He claimed that approximately 2,500 megawatts of solar power currently represented an industry generating around Rs. 25 billion, and alleged that the government was putting this sector at risk by removing Net Metering and Net Accounting and moving towards the Net Plus system.

“National Solar Power Target Has Still Not Been Achieved”

Premadasa also criticised the government's progress on rooftop solar power.

He said that although the government claimed that Sri Lanka had achieved its national targets for solar energy, the country had been expected to have rooftop solar installations covering one million roofs, while only around 150,000 roofs had so far been covered, leaving approximately 850,000 roofs.

He alleged that government policies were creating a monopolistic market in the solar energy sector and leaving small and medium-scale solar entrepreneurs in difficulty.

Premadasa said the government should instead promote solar energy by establishing systems and infrastructure at appropriate locations.

Call for Tax Concessions on Solar Equipment

The Opposition Leader said tax concessions should be provided for equipment used to promote rooftop solar power generation.

He further claimed that approvals for solar power projects had currently been suspended, despite government representatives making different statements at press conferences.

He called on the government to provide approvals for solar power projects and rooftop solar installations rather than continuing what he described as policies influenced by the fuel-power sector.

“Government Policy Could Lead to Brain Drain”

Premadasa said many young, educated people were involved in small-scale solar businesses and claimed that government policies had left these young entrepreneurs in a difficult position.

He said projects developed with significant financial investment were being disrupted and warned that what he described as the government's misguided policies could contribute to a serious brain drain.

“Current Government Is Following the Same Path as the Previous Government”

Premadasa said the procurement process should not be controlled as a monopoly and argued that both the National System Operator and electricity generation and distribution companies should have opportunities to participate in procurement.

He also criticised changes to the rates paid for electricity generated through solar power, referring to an earlier rate of Rs. 37 per unit, which he claimed had subsequently been reduced to Rs. 27, and alleging that the current government had further reduced the rate to Rs. 20.

He claimed that the government's policies were damaging the solar power sector while supporting projects such as Yugadanavi, Sobadhanavi and Sahasdanavi.

Premadasa further alleged that the government had failed to establish LNG generation units and was instead supporting diesel-generated electricity.

“Government Policy Is Violating People’s Fundamental and Human Rights”

Premadasa called on the government to intervene in the matter and ensure that entrepreneurs who entered the solar energy sector with high expectations were not left without viable businesses.

He claimed that the fundamental and human rights of these entrepreneurs had been violated and alleged that even decisions taken by the Ministry Secretary were unlawful.

Premadasa called for what he described as the removal of the “energy mafia” and urged the government to give priority to solar and renewable energy and work towards a 100% renewable-energy target.

The Opposition Leader made these remarks while discussing the current challenges facing Sri Lanka’s solar power industry with sector stakeholders.