FINANCIAL CHRONICLE — The Sri Lankan government has approved a plan for the Ceylon Electricity Board (CEB) to initiate the Maha Oya pumped storage hydropower project, with an estimated budget of 243.09 billion rupees, according to Minister Nalinda Jayatissa.
This initiative aims to establish a large-scale energy storage system that will retain surplus power generated from renewable energy sources. “The project is poised to facilitate energy storage during times of low demand, allowing for the distribution of this stored energy to the grid when demand peaks,” Jayatissa informed the media.
He emphasized that this project is crucial for incorporating a greater share of renewable energy into the national energy portfolio. The implementation will be divided into a development phase followed by a construction phase.
Funding for this 243.09 billion rupee project will be organized in accordance with the Public Debt Management Act No. 33 of 2024, as stated by Jayatissa. Pumped storage technology is increasingly viewed as an essential asset for Sri Lanka in its transition away from fossil fuels.
This technology operates similarly to a large battery, utilizing excess electricity to elevate water to a higher reservoir. The stored water can then be released through turbines to produce electricity during times of grid shortages. The Maha Oya project is anticipated to enhance grid stability significantly and lessen dependence on costly thermal power plants, particularly during peak evening hours. (Colombo/Apr2/2026)
