El Nino May Be Coming. Will the Lights Stay on?

The Government says Sri Lanka has enough water and generating capacity to avoid power cuts in the months ahead, even if El Niño brings drier conditions. This time there is another piece in the energy puzzle: large-scale battery storage. The question is whether Sri Lanka is finally building a power system capable of storing the sunshine it has in abundance.

Sri Lankans have heard assurances about uninterrupted electricity before, which is why the latest one deserves both attention and a little scrutiny.

Energy Minister Kumara Jayakody has told Parliament that the Government does not expect electricity shortages in the coming months despite concerns over possible El Niño conditions and their impact on rainfall and hydroelectric generation.

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As at September 10, reservoirs reportedly contained water capable of producing approximately 750 GWh of electricity, representing about 58.7 per cent of available hydro storage capacity. The Government expects rainfall during the coming weeks to strengthen that position further.

That is reassuring, but hydroelectricity has always contained an obvious weakness: Sri Lanka cannot order rain.

A prolonged dry period can rapidly transform comfortable reservoir levels into an energy problem. When hydro generation falls, the country becomes more dependent on thermal generation  and consequently imported fuel, precisely when Sri Lanka’s fuel import bill is already putting pressure on the external account.

The more interesting part of the Minister’s statement therefore concerns batteries.

The Government says it is moving ahead with Battery Energy Storage Systems  BESS  and preparing concessions for battery installations exceeding 100 kW when used to store renewable electricity.

That sounds technical. Economically, it could be transformative.

Sri Lanka increasingly produces solar electricity during daylight hours, including thousands of rooftop systems. But electricity must be available when people actually need it. Solar generation peaks during the day while household demand rises sharply in the evening.

Without storage, excess renewable electricity generated at one time cannot simply be put on a shelf and used later.

A battery can.

Large-scale storage allows electricity generated by solar and wind to be retained and released when demand rises, reducing the need to start expensive thermal plants merely because the sun has gone down.

It can also help stabilise the grid as Sri Lanka adds more intermittent renewable generation.

The policy direction therefore makes sense. What matters now is execution.

NEWSLINE would like to know how much battery capacity the Government intends to install, who will own it, how projects will be tendered, what tariff or capacity-payment arrangements will apply and  critically  who ultimately carries the financial risk.

Sri Lanka’s history is littered with perfectly sensible energy ideas subsequently damaged by opaque procurement, questionable pricing or contracts whose real costs became apparent only after they had been signed.

Battery storage must not become another such story.

There is also a wider opportunity. If storage, rooftop solar, utility-scale renewables and a modernised transmission network are developed together, Sri Lanka can reduce exposure to imported fossil fuels while improving energy security.

That would benefit not merely the electricity sector but the balance of payments.

Every additional unit of economically generated domestic renewable electricity potentially represents fuel that does not have to be purchased with scarce foreign exchange.

Be that as it may, El Niño provides a useful reminder. Sri Lanka cannot control whether it rains. It can control whether the country’s electricity system remains dependent upon it.