Sri Lanka wind energy resource map. (Image credit: NREL)

The government of Sri Lanka will be getting a US$ 155 million loan, from the Asian Development Bank, for the improvement and expansion of Sri Lanka's electricity production. Most of the activities will be focused on underdeveloped areas and areas negulfed in conflict. The loan was approved in order to support energy efficienct, the development of renewable energy and increase connections to the rural areas.

There is a growing demand for electricity in Sri Lanka, resulting in a gap between electricity production and demand. About 20% of homes in Sri Lanka still don't have electricity. The ten year development plan, among other things, includes modernization and upgrades on the country's transmission system, but also an addition of about 200 MW of hydro power to the national grid, while encouraging private investments. As a result of the 155 million loan, it is estimated the government is going to connect at least 60,000 homes to the electric grid.

Sri Lanka already has hydro power plants, mostly micro and mini hydro facilities. There had been bigger hydropower projects, some of which have ended up to be failures due to poor planning and execution, like the Kothmale, whose accumulation eventually dried up. Micro hydropower projects exist, but are limited to supplying smaller local communities with electricity.

It would be interesting to point out that Sri Lanka has other renewable energy potentials, like wind, solar and marine power. These resources, not mentioned in the loan, could also be interesting for the country's energy generation expansion. Maybe future private investments could lead the country out of the current energy crisis.