Sri Lanka has made significant progress in the promotion of private sector investments in renewable energy sources for rural areas. Productive use of electricity has led to a rise of income in rural households.

Colombo Page published news of the approval of US$ 40 Million additional financing by the World Bank to lend weight to Sri Lanka’s endeavor to provide electricity to its distant rural communities & encourage private-sector investments in electricity generation from RE (Renewable Energy) sources in the urban areas.

Colombo page news featured a statement by Naoko Ishli, World Bank Country Director who said, “We would like to focus on the provision of energy services to some of the 25% of the Sri Lankan population that has no access to electricity at home. The grid-connecting capacity will be boosted by a further 50 MW and off-grid electricity services will be extended to 60, 000 additional households and 500 rural micro and small-scale enterprises in rural areas.”

Efficient use of electricity has resulted in a rise in rural families’ non-farm incomes apart from improvement in social services like education and health using customized-electricity provisions. Power generation capacity increased due to the initial RERED project (Renewable Energy for Rural Economic Development Project) with the help of private sector and better energy access in rural areas. The impact was manifest in socio-economic developments including initiation of income-generation activities that boosted earning levels in villages involved in the project.

The sharp surge in oil prices in recent times had an adverse impact on the country’s economy for supply of conventional energy sources minus fluctuations. The complete lack of petroleum resources deposits in the country has added to the woes. As a result an immediate need for exploration of solutions to aid the energy problem has arisen. The options are using renewable energy sources and improved efficiency in existing implementation. The importance of renewable resources is also emphasized for reduction of air pollution, combating adverse climate effects and supply of clean energy.

A research analyst at RNCOS has come to the conclusion that the progress made by Sri Lanka by way of encouraging private investments in renewable and rural energy is commendable. With the help of additional financing, the potential of the project would be increased with the development of renewable energy sector, which in turn would have a positive impact on the country’s energy development targets.

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