Cabinet green-lights new CEB feeding tariff formula
May 3, 2023 11:48 am
The Cabinet of Ministers has granted approval for the Ceylon Electricity Board (CEB) to adopt a new formula to calculate the feeding tariff for Renewable Energy (RE) projects, in a bid to attract more investments to the sector.
Accordingly, the relevant formula will be variable over 20 years, while the first 10 years will be front-loaded, taking into account the Average Weighted Prime Lending Rate (AWPLR), Treasury Bill Rate (TBR), exchange rate and inflation, Minister of Power and Energy Kanchana Wijesekera explained.
Taking to Twitter, the Minister further stated that an investment premium up to 3% will be made available for selected projects, while developers will also be given the option of choosing between the variable feeding tariff formula and the fixed tariff formula which was introduced last year.
He noted, however, that the new formula approved by the Cabinet will only be available to new power purchasing agreements.
