Renewable energy producers left high and dry as CEB prioritises spending on oil-fired power plants

In an interview with The Island, Federation Vice President Prabath Wickramasinghe explained that the payment crisis arose because authorities are focusing on spending for diesel and furnace oil power generation to combat a daily electricity shortage of nearly 150 megawatts, which is due to inefficiencies in coal power. He pointed out that rising global fuel prices, driven by the escalating conflict in the Middle East, have significantly increased the costs of thermal power generation, which are now estimated at nearly Rs. 10 or more per unit. “In this context, it is crucial to emphasize renewable energy,” said Wickramasinghe. He added that the problem impacts not just large renewable projects but also ground-mounted solar plants, mini-hydropower projects, wind farms, and biomass power stations across the country. The Federation reported that 389 renewable energy plants, with a total installed capacity of 1,073.9 megawatts, are currently affected. Wickramasinghe warned that the ongoing non-payment could force plant owners to default on bank loans and other financial commitments, damaging investor confidence and destabilizing the renewable energy sector. He also cautioned that if renewable energy providers cut back or halt production, it could lead to future electricity shortages. When contacted by The Island, Dr. B.L. Pradeep Priyadarshana Perera, the Chairman of the National System Operator (Private) Company, acknowledged the payment delays and stated that talks with the Ministry of Finance are ongoing to resolve the matter swiftly.