ADB approves $200m loan to upgrade Sri Lanka's power infrastructure

MANILA: Asian Development Bank (ADB) has approved a loan of $200 million to upgrade Sri Lanka's power sector infrastructure. By expanding and modernising infrastructure and incorporating digitalisation solutions, the Power System Strengthening and Renewable Energy Integration Project will support Sri Lanka's goal of increasing the integration of renewable energy into the electricity mix, reducing power interruptions, and minimising transmission and distribution losses.

The ADB noted that Sri Lanka achieved 100% household electrification in 2016. Peak demand reached around 2,800 megawatts (MW) in 2023, including contributions from distributed renewable energy, and is projected to grow significantly by 2030. While Sri Lanka's total installed power generation capacity reached 5,191 MW in 2023, about 50% of the country's electricity generation that year came from thermal power plants, highlighting the challenges in transitioning to a more sustainable energy mix.

The project will expand the capacity of transmission and distribution networks, enabling greater integration of renewable energy. It will extend the 220-kilovolt and 132-kilovolt transmission infrastructure with new transmission lines and substations, modernise the medium voltage distribution network, and upgrade grid protection systems, the Manila-based bank said.

By RSS/Xinhua