The Cabinet has approved a contract to build Sri Lanka’s first utility-scale Battery Energy Storage System (BESS) at the Kolonnawa Grid Substation.
The project involves installing a 100 MWh battery system to strengthen the national electricity grid and support the integration of renewable energy into the power system.
It is being carried out under the Power Grid Strengthening and Renewable Energy Integration Project, with financial assistance from the Asian Development Bank (ADB).
Four bids were received under the International Competitive Procurement Procedure. After the bids were evaluated and the High Level Procurement Committee made its recommendation, the Cabinet approved a proposal by the Energy Minister to award the contract to a joint venture of Ceylex Engineering (Pvt) Ltd and Xingneng Electric Power Construction Co. Ltd.
The contract is valued at EUR 2.61 million and Rs. 555.13 million, excluding taxes.
Background
A battery energy storage system stores electricity when supply is plentiful and releases it when demand rises or generation drops. A rating of 100 MWh describes how much energy the batteries can hold, which is enough to supply 100 megawatts of power for one hour.
Solar and wind plants produce electricity only when the sun shines or the wind blows, so their output changes during the day. Grid operators generally use storage to smooth out these swings and to keep the frequency and voltage of the network stable.
Sri Lanka has set targets to raise the share of renewable energy in its electricity supply. The Ceylon Electricity Board (CEB) has in the past had to manage sudden changes in supply on the national grid, and the Cabinet decision describes the new storage system as a way to strengthen the grid and help bring more renewable power into it.
The International Competitive Procurement Procedure is a bidding method open to companies from different countries. Projects funded by multilateral lenders such as the ADB usually follow such competitive rules, and the Cabinet decision says the award follows an evaluation of the bids.
What it means
For households and businesses, the aim of grid-scale storage is a steadier supply as more solar and wind power joins the national grid. A stronger grid can reduce the need to switch off renewable plants when the system cannot absorb their output.
The Cabinet decision does not give a completion date for the Kolonnawa system or say how it will affect electricity tariffs. Any effect on bills would depend on how the project is operated and on later decisions by the authorities.
