The Energy Services
Delivery (ESD) Project was implemented during 1997 – 2002 by
the Government of Sri Lanka (GOSL), with World Bank and Global Environment
Facility (GEF) assistance. The ESD Project comprised three components
- a credit programme, a pilot grid-connected wind farm of 3MW and
a capacity building component for the Ceylon Electricity Board (CEB).
The Administrative Unit (AU) set up within DFCC Bank was the executing
agency for the ESD Credit Programme component and the CEB was the
executing agency for the other two components.
ESD Project Credit Programme
The ESD Project Credit Programme provided the basis for a market-based
approach to the introduction of renewable energy development in Sri
Lanka. It was designed to promote private sector and community based
initiatives for the provision of electricity services through grid-connected
mini hydro projects, off-grid village hydro schemes and solar photovoltaic
electrification of rural homes. The ESD Credit Programme resulted
in a dramatic increase in the development of grid-connected and off-grid
renewable energy projects, prepared and implemented by the private
sector and village communities.
At completion, the ESD Project Credit Programme had met or exceeded
all targets:
31 MW of mini hydro capacity
installed through 15 projects against a target of 21 MW
20,953 solar home systems (SHS)
installed, with a total capacity of 985 kW, against a revised
target of 15,000
350 kW of capacity through 35 village
hydro schemes serving 1,732 beneficiary households against a
target of 250 kW through 20 schemes.
The ESD Credit Programme was assisted by a US$19.7m line of credit
from the International Development Association (IDA) of the World
Bank and a US$3.8m grant from the Global Environment Facility (GEF).
Loans for individual investments or subprojects were disbursed through
participating credit institutions, namely DFCC Bank, National Development
Bank (NDB), Hatton National Bank (HNB), Sampath Bank, Commercial Bank
and Sarvodaya Economic Enterprises Development Services (SEEDS).
The Credit Programme provided medium to long-term funding to private
investors, non-governmental organisations (NGOs) and co-operatives
for:
off-grid electrification
infrastructure through village hydro (OGVH) schemes and solar
home systems (SHS)
grid-connected mini hydro (GCMH)
projects and
other renewable energy investments.
Off-Grid Projects, following an initial period of market development,
entered a phase of rapid and sustained growth during the final two
years. The follow-on Renewable Energy for Rural Economic Development
(RERED) Project builds on the success of the ESD Project.
Grid Connected Hydro Projects Commissioned Under ESD Project
Pilot Wind Farm The wind farm comprises five 600 kW turbines designed to
supply a total annual capacity of 4.5 GWh. The CEB continues to monitor
and record operational data from the wind farm and learn from the
experience in integrating such projects with the national grid.
Capacity Building The ESD Project provided capacity building assistance to
the Demand Side Management Branch of CEB.
