Diesel power generation set to drop sharply by end 2027

Diesel-fired electricity generation is expected to be significantly reduced before the end of 2027 by integrating large-scale battery energy storage into the national grid, National System Operator Private Limited revealed.

National System Operator Chairperson Pradeep Priyadarshana, speaking to media this week, have stated that plans are in place to add around 750 megawatts of battery storage capacity by the end of next year.

National System Operator added that the battery systems are already being connected to the electricity network, with 160 megawatts of battery capacity already arrived in Sri Lanka and installations are underway.

He said tenders were also called to secure private sector investment for an additional 250 megawatts of battery storage, which is expected to be connected to the grid between March and April next year.

Accordingly, another 100 megawatts will be procured through National Transmission Network Service Private Limited with financial assistance from the Asian Development Bank.

In addition, National System Operator Chairperson added that there is a plan to invite bids to install battery storage alongside 150 megawatts of ground-mounted solar power plants.

He said the combined projects would enable the country to add 750 megawatts of battery capacity to the national grid by the end of 2027, reducing dependence on diesel generation.

He added that further solar and wind power projects, planned for 2028 and 2029, together with expanded battery storage, would also reduce the need for thermal power generation.

According to the National System Operator, the initiative could save between 30 billion rupees and 35 billion rupees annually and ultimately allow electricity tariffs to be reduced for consumers.