Solar Shutdown Sparks Industry Outrage

Renewable energy developers warn of economic fallout, urge policy reforms as disconnections shake investor confidence

Voluntary Disconnection or Forced Silence?

The Ceylon Electricity Board’s (CEB) call for “voluntary” disconnections between April 10 and 21 has ignited sharp criticism from the renewable energy sector. Stakeholders say the move undermines trust and stability in solar energy investment, especially in systems under the net plus and net plus plus schemes.

Contracts Without Protection

According to Dr. Lakmal Fernando of the National Chamber of Commerce, the absence of compensation clauses in local agreements makes temporary disconnections financially devastating. He compares the current setup to “nearly unbankable” international power purchase agreements (PPAs) and warns of investor flight.

 Targeting 70% Renewables with Zero Backup?

Despite Sri Lanka’s ambitious 2030 target of 70% renewable energy, experts say there’s little real support. With 615 MW added to the grid in 2024 alone, the government’s failure to build storage infrastructure—despite ADB funding—raises serious doubts about commitment.

 Systemic Breakdown and Lack of Transparency

Dr. Fernando dismisses CEB’s claims of unknown solar input as implausible. All solar projects require approval. “How can they not know?” he asks, highlighting a data deficit and lack of forecasting tools that led to the nationwide blackout and ongoing system mismanagement.

Economic Fallout: SMEs on the Brink

Small and medium-sized solar developers are teetering. In the Western Province alone, 60% face bankruptcy due to loan defaults. The sudden stop in cash flow has halted operations and left many businesses scrambling to avoid foreclosure.

A Silent Crisis for Everyday Users

Users like Ravi, burdened with Rs. 120,000 in monthly payments, couldn’t afford to disconnect. Others, like printing press owner Roshan Liyanage, say halting power production would shut down their operations entirely—even during periods of high solar output.

A Divided Front: Not All Negative?

While most of the sector criticizes the CEB’s actions, a minority voice acknowledges technical concerns. One anonymous provider under the net metering scheme said temporary disconnection may be justified due to oversupply—raising the need for balance between grid management and investor security.

The Missing Battery Storage Puzzle

A recurring concern is the lack of progress in deploying battery storage. Experts point to a stalled tender process and note that without storage systems, renewable integration will remain unstable. “What’s the point of having sun and wind if we can’t store it?” Dr. Fernando asks.

Policy Paralysis and Bureaucratic Delays

Even high-level attempts at intervention are stalled. Dr. Fernando has waited over a month for a meeting with the President. “We need clarity, not chaos,” he says, urging the government to break the silence and restore investor confidence.

Industry leaders are now calling for regulatory reforms, financial protections, and a transparent national plan for renewable integration. Without urgent action, they warn, Sri Lanka’s green energy future may dim before it truly begins.