During a recent visit to Sri Lanka, Khanna outlined a comprehensive roadmap for scaling up renewable energy deployment, citing the sharp rise in oil and gas prices and supply constraints as a critical turning point. He noted that solar energy, combined with storage solutions, is no longer just a climate imperative but an economic necessity. Highlighting recent developments, he pointed to Sri Lanka’s competitive bid for 150 megawatt-hours of battery storage, where tariffs were discovered at Rs.17, significantly lower than the Rs.90 cost associated with diesel-based generation during peak hours.
Khanna emphasized that Sri Lanka’s existing capacity of approximately 800 megawatts of rooftop solar, along with the growing adoption of electric vehicles, has already provided some insulation against fuel shortages. However, he stressed that a faster rollout could have further mitigated the impact of diesel and gas supply disruptions.
As part of ongoing collaboration, the ISA and Sri Lanka have agreed to develop a detailed country partnership strategy. Khanna confirmed meetings with senior policymakers, including the Prime Minister, Minister of Energy, Deputy Minister of Finance, Minister of Agriculture, and Minister of Plantation, focusing on strengthening policy frameworks and regulatory mechanisms.
He identified four key policy priorities. First, the development of a comprehensive battery storage policy to support Sri Lanka’s target of 650 megawatt-hours, ensuring clarity on lithium-ion and emerging technologies. Second, streamlining the approval process for solar projects, which currently involves 17 agencies, by introducing a digital single-window clearance system in coordination with the Sustainable Energy Authority. He argued that solar projects, due to their minimal environmental impact, should not face the same regulatory burden as hydroelectric projects.
Third, Khanna highlighted the role of digitisation and artificial intelligence in modernising the power grid. He noted frequent complaints about solar curtailment, particularly on Sundays, and proposed solutions such as smart meters, distribution energy management systems, and AI-driven tools to enhance grid efficiency and renewable integration.
The fourth priority involves the creation of a national solar energy roadmap encompassing utility-scale projects, floating solar installations on reservoirs, rooftop systems, agrivoltaics, and battery integration. He stated that such a framework would attract significant private sector investment at lower tariffs, reducing reliance on costly diesel generation.
Addressing environmental clearance concerns, Khanna suggested that Sri Lanka adopt a simplified approach similar to pre-environmental clearance used in small hydro projects. He pointed out that, unlike hydroelectric projects, solar installations do not significantly impact fisheries, land ecosystems, or biodiversity. He added that in India, solar projects do not require environmental impact assessments, a model Sri Lanka could partially consider.
Khanna warned that continued dependence on diesel imposes a severe fiscal burden, particularly as prices have doubled. He stressed the need to electrify transport, industry, and households, reducing reliance on imported fuels. Currently, only about 20 percent of Sri Lanka’s total energy demand is met through electricity, while transport and other sectors account for the remaining 80 percent, largely dependent on fossil fuels.
He projected that increasing electricity’s share to 60 percent over the next five to ten years would significantly reduce vulnerability to global supply shocks. This shift would require a diversified energy mix, including solar, wind, and hydropower, all of which are domestically available and immune to international disruptions.
On capacity expansion, Khanna noted that Sri Lanka has already installed around 1 gigawatt of solar power, with nearly 700 megawatts from rooftop systems. The national target is to add 4 gigawatts by 2030, alongside substantial battery storage capacity. He emphasized that most of this investment must come from the private sector, which accounts for approximately 95 percent of the global $2 trillion annual clean energy investment.
Khanna also highlighted new project opportunities, including floating solar installations on reservoirs, with plans to initiate competitive bidding for around 100 megawatts. He introduced agrivoltaics as an emerging solution, enabling solar panels to be installed above crops without affecting agricultural productivity.
In the agricultural sector, he pointed out the existence of approximately 27,000 diesel pumps, advocating their replacement with solar-powered alternatives that cost nearly one-third as much. He reiterated ISA’s commitment to supporting Sri Lanka through policy assistance, project development, and capacity building, including the establishment of the Solar Technology Application Resource Centre at the University of Moratuwa.
Looking ahead, Khanna confirmed plans for sustained engagement, including the creation of a national support unit within the Ministry of Energy and a dedicated project office in Sri Lanka. He stated that he would visit every six months to review progress, supported by a steering committee co-chaired with the Ministry’s Secretary and comprising key stakeholders.
The developments signal a decisive shift in Sri Lanka’s energy strategy, driven by global instability and economic pressures. With strong policy alignment and private sector participation, the country aims to transform its energy landscape, reduce dependence on imported fuels, and build a resilient, sustainable power system.
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