Renewable energy developers slam tariff cuts, urge AKD’s intervention

FRED deeply concerned about 30% cut to feed-in tariffs, warning policy reversals undermine investor confidence and threaten 2030 renewable energy targets | Says tariff revision bypasses legally required PUCSL approval | Urges immediate independent review of feed-in tariffs with science-based reasoning | Highlights 50% tax burden on imported batteries makes projects unviable | Criticises CEB delays in adopting battery storage and frequent solar power curtailments | Claims curtailments breach longstanding PPAs, cause financial distress to developers, with 75% of renewable projects barely profitable or at a loss | Calls on Govt. to monitor CEB operations to avoid energy crisis | Seeks meeting with President, Treasury Secretary and Power Minister to resolve issues

- CHARUMINI DE SILVA

THE Federation of Renewable Energy Developers (FRED) last Friday voiced deep concern over the Government’s recent move to slash feed-in tariffs for renewable energy projects, warning that repeated policy reversals risk derailing the country's clean energy ambitions.

In a direct appeal, the FRED called on President Anura Kumara Disanayake to intervene and guide reforms based on transparent, science-backed principles.

The Federation expressed its 'profound concern' about the harmful decisions by the authorities that risk destabilising investment flows, undermining the viability of the sector at a critical time of the country's energy transition.

Speaking to the media, FRED President Thusitha Peiris described the 30% tariff cut approved by the Cabinet of Ministers on 16 June as a 'unilateral decision' that has drained investor confidence.

"The very foundation of sustainable energy development - predictable and fair policy - has been eroded," he claimed, noting that Sri Lanka cannot hope to meet its 70% renewable energy target by 2030 if it alienates private investors with short-sighted policy reversals.

Peiris called for an immediate review of the tariffs under a proper and independent committee that would consider industry concerns backed by science-based rationale.

National Chamber of Commerce of Sri Lanka (NCCSL) Renewable Energy Council Member Eng. Prabhath Wickramasinghe pointed out that the tariff revision had not been referred to the Public Utilities Commission of Sri Lanka (PUCSL) as legally required.

"If the feed-in tariffs are being changed, they must be approved by the electricity regulator, which has not happened in this case," he stressed, confirming that the FRED has written to the PUCSL and is awaiting a response.