Description

In recent years Sri Lanka has improved its energy sector and achieved a national electrification ratio of 94% (2012) compared with 29% in 1990. But a longer-term challenge is to reduce its high dependence on expensive fossil fuel energy. The energy sector struggles to (a) meet growing demand for electricity at a low cost and acceptable reliability rates, and (b) attain long term sustainability. The share of thermal energy in the power generation mix has increased from 6% in 1995 to 54% in 2011 that creates a high energy cost base. Demand growth has been met by expensive oil-fired thermal plants. This is not the solution to the country's energy security and environment protection in the long term. Diversification of the generation mix, especially from renewable energy sources, improved network efficiency, and supply and demand side management is the only way to correct this situation.