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Small hydro developers slam CEB shutdown, demands compensation
Daily FT
|April 17, 2025
Warns of power crisis and financial fallout Claims CEB's decision stems from its failures in grid modernisation, lack of investment in essential technologies, advanced weather forecasting and lack of effective system planning.
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Says shutdown affects nearly 450MW of installed small hydro capacity, with national grid losing 1.8 m units of electricity daily
Highlights economic consequences with CEB's emergency power purchase of costlier thermal energy at over Rs. 50 per unit as against Rs. 10 per unit for small hydro
Accuses CEB of violating binding PPAs; destroying investor trusts, putting entire renewable sector at risk
Calls for President and Minister's intervention to reverse decision
THE Small Hydro Power Developers Association (SHPDA) has strongly condemned the Ceylon Electricity Board's (CEB) decision to shutdown small hydropower plants across the country starting 11 April, calling it a reckless move that endangers country's energy security and economy.
SHPDA President Thusitha Peiris said the CEB's directive, issued under the pretext of stabilising the grid during the festive season, is both unjustified and illegal. Small hydropower plants provide reliable, round-theclock electricity and help balance the grid, especially at night when solar and wind sources are inactive.
This story is from the April 17, 2025 edition of Daily FT.
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