Wind project to foster regional cooperation

A World Bank-funded roadmap for Offshore Wind Development in Sri Lanka expects to foster regional cooperation by pushing offshore wind energy as a larger part of the country’s electricity generation mix.

The report also looks to justify the large infrastructure costs associated with grid improvements and push the country to have a large decarbonization target. The report also promises that the country will be able to export energy into the Indian sub-continent. The report was discussed on August 25 at a virtual gathering of officials from the Power and Energy Ministry, Ceylon Electricity Board, World Bank, Sustainable Energy Authority, and other foreign diplomats.

Power and Energy Minister Kanchana Wijesekera said, “We are not just looking for financing but rather looking for technological know-how and transfer in selecting partnerships.”

Sri Lanka is being made to achieve a renewable energy target of 70% of generation placing it well above other developing countries. The report states, “Offshore wind has a higher cost than onshore wind and solar PV which could lower interest to start developing the offshore wind industry in a timely manner.”

The report estimates Sri Lanka’s offshore wind energy potential to be over 56 gigawatts. This includes both fixed foundations in shallower waters and floating offshore wind in deeper waters. The report identifies two promising areas for offshore wind development: the Mannar region and the Puttalam region on the west coast. These areas have good proximity to the grid and lower environmental risks. Typically, offshore wind developers look for projects that are at least 500 megawatts in size to attract experienced developers and reduce costs. The size of the first project in Sri Lanka would depend on the site and grid connection availability, with a range of 500 to 1,000 megawatts considered reasonable.

The report breaks down Sri Lanka’s paths into either low-growth or high-growth scenarios. The generation of offshore wind energy capacity would be both very expensive and have minimal contribution to the energy security of the country in comparison to a thermal plant. Nuclear power would be a new technology that the government could look to if it seeks novel technology.

In the Low Growth Scenario, offshore wind capacity would reach 2 GW by 2050, with 0.5 GW by 2030 and 1 GW by 2040. This represents approximately 5% of Sri Lanka’s 2030 generation capacity and 6% in 2040. By 2030, 500 MW of capacity could prevent 0.85-1.0 million metric tons of CO2 emissions annually and create up to 25,000 full-time equivalent jobs in local communities over the project’s lifespan.

In the High Growth Scenario, we anticipate reaching 4 GW of installed capacity by 2050, with 1 GW by 2030 and 2.5 GW by 2040, making up approximately 10% of the generation capacity in 2030 and about 15% in 2040. A 1 GW capacity by 2030 will reduce annual CO2 emissions by 1.7-2.0 million metric tons.

Over its lifecycle, this 1 GW capacity could create up to 57,600 full-time equivalent jobs in local communities. While insufficient for local supply chain development, the Levelized Cost of Electricity (LCOE) trends similarly to the Low Growth Scenario until 2030. Post-2030, LCOE may drop below US$60 per MWh by 2040 and around US$50 per MWh by 2050. TP

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