Sri Lanka pushes accelerated renewable shift amid soaring fuel costs and grid challenges

Sharp increases in energy costs and a six-hour nationwide blackout have highlighted Sri Lanka's vulnerability after the US and Israel launched a war on Iran, tightening the Strait of Hormuz. Energy minister Anura Karunathilaka noted that the state has at one outlet used as much as 30% of its foreign-exchange reserves to buy fossil fuels. While the 2030 target is 70% renewable electricity, the government may need to exceed that level, he said.

Community opposition to wind farms on the Mannar peninsula and technical constraints such as transmission capacity and grid stability are slowing progress. The ministry plans to add five major transmission lines, expand battery storage, and introduce a new pricing model for solar producers to make the system financially sustainable. Over the next decade, officials aim to cut coal and naphtha use, targeting 90-95% renewable energy.