Following the
3MW pilot wind farm executed by CEB under the ESD Project and regional
wind resource measurements, there has been considerable
interest by the private sector in developing wind power projects in
several promising sites in Sri Lanka. The wind power industry will
be led by the private sector, with active government support and regulations,
including transparent tariff setting. Carbon trading mechanisms offered
on the international market will also be tapped to improve financial
returns. However some critical barriers to full commercialisation
of wind power projects do exist. They include the absence of regulation,
weak transmission grid in certain wind-rich areas and limited private
sector capacity at present. Some of these issues will be addressed
through technical assistance. The RERED Project envisages a capacity
addition of 20-25MW to the grid through wind power.