The Government of Sri Lanka has approved a contract worth nearly USD 6 million for a joint venture between Ceylex Engineering Ltd. and Xingneng Electric Power Construction Co., Ltd. to upgrade the Kolonnawa Grid Substation and develop the country's first utility-scale battery energy storage system (BESS).

Sri Lanka Advances 100 MW Battery Storage Project

The project involves a 100 MW/100 MWh battery energy storage facility designed to strengthen grid stability and support the integration of renewable energy into Sri Lanka's national electricity network.

The initiative forms part of an Asian Development Bank (ADB)-funded programme to enhance the country's power infrastructure and accommodate a growing share of renewable electricity.

Contract Covers Multi-Currency Project Components

The contract has a total value of nearly USD 6 million, excluding taxes. Its components comprise approximately USD 1.27 million, USD 2.98 million, and USD 1.65 million.

The contract award follows an international competitive bidding process launched after the Government approved the Kolonnawa Grid Substation upgrade on September 2, 2024. Four international bidders submitted proposals for the project.

Following the evaluation process, a High-Level Procurement Committee recommended the Ceylex Engineering-Xingneng Electric Power Construction joint venture as the substantially responsive bidder. The Cabinet subsequently approved the contract award based on the committee's recommendation.

BESS Project to Support Renewable Energy Integration

The planned 100 MW/100 MWh battery storage facility is intended to improve the stability and flexibility of Sri Lanka's electricity network. Grid-scale battery storage can help manage fluctuations in renewable power generation and support the integration of variable sources such as solar and wind energy.

The project is being implemented under an ADB-funded initiative focused on strengthening the national power network and facilitating the country's renewable energy transition.

Addressing the weekly post-Cabinet media briefing, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the facility had been proposed in line with Sri Lanka's long-term electricity generation expansion plans.

The proposal for the contract award was submitted by Power Minister Anura Karunathilake.

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