Sri Lanka has announced its intention to sign a memorandum of understanding (MoU) with India to increase the island nation’s use of renewable energy, aiming to generate 70% of its electricity requirements from renewable sources by 2030.

The Sri Lankan Cabinet has approved cooperation in renewable energy between the two countries. An unnamed Cabinet spokesman stated that generating 70% of the country’s electricity requirements by 2030 from renewable energy sources would ensure Sri Lanka was independent in power supply and neutralised carbon emissions by 2050. The Indian government would help by operating and facilitating power generation through solar, wind, and biomass.

Furthermore, the National Thermal Power Corporation (NTPC) of India and the Ceylon Electricity Board (CEB) of Sri Lanka have agreed to implement a solar power project in two stages in the same venue where the previous coal power generation plant was planned to be established in Sampoor, Trincomalee, generating 135 MW.

The first stage will involve implementing a solar power project of 50 MW with a total estimated investment of $42.5 million and constructing a 220-kilowatt transmission line with a 40 km length from Sampoor to Kappalthure in the Eastern province, with a planned completion date between 2024 and 2025.

The second stage involves constructing a solar power generation plant with an additional 85 MW under a total investment of $72 million. Additionally, a transmission line of 76 km with a capacity of 220 kilowatts from Kappalthure to New Habarana in the North Central province is planned to distribute electricity generated under the second stage. The total estimated cost for the transmission line is $42 million.

The Indian government has shown its readiness to collaborate with private and state entrepreneurs in India and Sri Lanka to establish a sustained transmission infrastructure in the northern and eastern provinces of the island, as agreed upon mutually. Sri Lanka’s Power and Energy Minister, Kanchana Wijesekera, recently discussed investment opportunities and energy sector cooperation with an Indian delegation led by Pankaj Jain, Secretary of the Indian Ministry of Petroleum and Natural Gas.

The discussion focused on developing Trincomalee as an energy hub and promoting renewable energy, infrastructure development, and the supply of liquefied natural gas. Jain called for enhanced partnership between India and Sri Lanka in the energy sector, urging both countries to explore renewable energy sources such as green hydrogen, ammonia, and compressed biogas. The Indian delegation included Gopal Baglay, Indian High Commissioner to Sri Lanka, Vinod K. Jacob, Deputy High Commissioner, and other Indian officials.