Grid-connected projects are commercial initiatives carried out by private sector developers who sell the electricity generated to the Ceylon Electricity Board (CEB). A total of 15 mini hydro subprojects with an installed capacity of 31 MW were financed under the ESD Project. The RERED Project extends term loans through Participating Credit Institutions to commercially viable subprojects using renewable energy technologies – such as small hydro, wind and biomass. It targets a capacity addition of 135 MW through grid-connected renewable energy projects, each typically under 10MW in capacity.

The CEB has in place a standardised small power purchase agreement and tariff for grid-connected renewable energy power generation projects up to 10MW capacity, which are paid a technology specific, cost based tariff.