Sri Lanka Approves 700 MW Floating Solar PPA

• The Sri Lankan government has approved a 700-MW floating solar park with 1.5 GWh battery storage, providing 1,100 GWh of renewable energy annually and investing USD 1.72 billion. An environmental milestone, this project will revolutionize the energy sector of Kilinochchi.

The Sri Lankan government has approved a Power Purchase Agreement (PPA) with Australia’s United Solar Group for a 700-MW floating solar park with battery storage. The proposal includes an investment of USD 1.72 billion and is expected to generate 1,100 GWh of renewable energy annually. The scheme envisages 437 hectares of water surface at the Poonakary Lake in the town of Kilinochchi and will have a 1.5 GWh battery storage facility. Around USD 500 million will be allocated for domestic project components.

What is Sri Lanka's USD 1.72B Floating Solar Park Plan?

• The 700-MW floating solar park is expected to be the largest of its kind in the world.
• This project is being undertaken to meet the rising demand for electricity and reduce the energy cost in the country, as electricity prices in Sri Lanka are amongst the highest in the Asia-Pacific region.
• The scheme will also have ancillary benefits such as providing a secondary source of income for local people, helping to reduce the impact of drought and flooding, and providing habitat for aquatic species.
• The project is expected to be completed in four years and is expected to generate 1,100 GWh of renewable energy annually.
• The project will be funded by a syndicate of banks, with the majority of the funding coming from Australia’s United Solar Group.
• The scheme is expected to bring down energy costs in the country and create jobs in the local area.
• The project will also help Sri Lanka meet its goal of achieving 100 percent renewable energy by 2030.