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Sri Lanka Targets Major Cut in Diesel Power Generation by End of 2027

July 19, 2026

Sri Lanka is aiming to significantly reduce diesel-based electricity generation by the end of 2027 through the large-scale integration of battery energy storage systems into the national power grid, according to the National System Control Centre (NSCC).

Speaking to Ada Derana, NSCC Chairman Dr. Pradeep Priyadarshana said the country plans to add around 750 megawatts (MW) of battery storage capacity by the end of 2027, reducing the need for diesel-powered electricity generation.

He said the installation process is already underway, with 160 MW of battery storage capacity having been imported and currently being installed.

In addition, tenders have been called to attract private sector investment for a further 250 MW of battery storage capacity, which is expected to be connected to the national grid between March and April next year.

Dr. Priyadarshana also said the Ceylon Electricity Transmission Company (CEB Transmission), with financial assistance from the Asian Development Bank (ADB), has invited tenders to procure an additional 100 MW of battery storage capacity.

Plans are also underway to invite bids for battery storage systems to support 150 MW of ground-mounted solar power plants.

According to the NSCC, the combined implementation of these projects will increase the country’s total battery storage capacity to around 750 MW by the end of 2027, helping to significantly reduce reliance on diesel for electricity generation.

Dr. Priyadarshana said additional solar and wind power projects are scheduled for implementation in 2028 and 2029. Integrating battery storage with these renewable energy projects is also expected to reduce the use of furnace oil in power generation.

The initiative is projected to generate annual savings of between Rs. 30 billion and Rs. 35 billion, with the potential for those savings to be reflected in lower electricity tariffs for consumers.

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