Sri Lanka Energy Services Delivery Project Credit Programme: A Case Study

This paper is about the Sri Lanka Energy Services Delivery (ESD) Project, which was set up in 1997, and which comprises three components:

• Credit program;
• Pilot wind farm;
• Capacity building.

The paper outlines some innovative features and the progress of this program:

• Long term goals:
  • Incorporating environmentally sustainable renewable energy technologies,
  • Achieving acceptance by consumers, project developers and financial institutions.
• Paradigm change: Encouraging the private sector to provide energy services and empowering people to access them;
• Addressing of two key issues to enhance the policy and regulatory environment for private investments in renewable energy services delivery through the development of:
  • A standardized Small Power Purchase Agreement (SPPA),
  • A non-negotiable Small Power Purchase Tariff (SPPT).
• Setting up of two development banks and three commercial banks, all privately owned and controlled;
• Execution of generic promotion campaign;
• Industry participation in policy development;
• Ensuring compliance with technical specifications.

The paper concludes that several innovations emerged from the ESD Credit Programme, some to capture opportunities, and others to overcome barriers.