The International Finance Corporation (IFC), part of the World Bank Group, has forged a collaboration with WindForce PLC to establish Sri Lanka’s inaugural utility-scale solar power plant, boasting a capacity of 100 megawatts (MW). This significant initiative is set to expedite the nation’s transition to renewable energy, enhance energy security, reduce electricity expenses, and generate thousands of jobs.
Once operational, the facility is expected to produce approximately 220 gigawatt-hours (GWh) of clean electricity annually, contributing to Sri Lanka’s ambition of achieving a renewable energy share of 50-70 percent in its power generation mix by 2030. This project is anticipated to improve grid reliability, decrease costs for consumers, and create over 3,000 employment opportunities, including roles that enhance skills in the renewable energy and infrastructure sectors.
IFC plans to invest up to $18 million through a loan in local currency, backed by the IDA21 Private Sector Window (IDA PSW) Local Currency Facility, to finance WindForce’s solar power project and its associated infrastructure. This investment also lays the groundwork for future utility-scale battery storage and renewable energy initiatives, thereby improving grid stability.
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In addition to financial support, IFC will provide specialized advisory assistance aimed at bolstering WindForce’s technical and operational capabilities across various domains, including engineering, procurement, maintenance, sustainability, grid resilience, and cybersecurity.
This partnership aligns with the World Bank Group’s strategic focus on promoting renewable energy, which is a central aspect of the Country Partnership Framework for Sri Lanka. By blending private investment with market development efforts, the collaboration aims to enhance grid resilience, facilitate the integration of variable renewable energy, and support economic recovery through reduced dependence on imported fuels and improved energy security. The initiative complements the first phase of the World Bank’s Secure, Affordable, and Sustainable Energy Program, which features a $30 million IDA credit aimed at enhancing transmission infrastructure and institutional capacity for renewable energy integration.
The importance of this initiative cannot be overstated, as Sri Lanka currently faces high electricity costs and significant exposure to external energy shocks. Affordable and reliable domestic energy is essential for economic recovery and enhancing competitiveness. With an annual electricity demand between 15,000 and 16,000 GWh—placing Sri Lanka among the highest-cost power markets in the region—expanding the use of renewable energy will bolster grid stability, ensure a reliable energy supply, support the government’s renewable energy targets for 2030, and contribute to the development of a robust energy system.
Manjula Perera, the Managing Director of WindForce PLC, remarked, “This partnership marks a pivotal moment for WindForce. Teaming up with IFC, a globally esteemed development finance entity, affirms our strategic direction, governance standards, and long-term vision. This funding accelerates our investments in renewable energy and energy storage, aiding Sri Lanka’s shift towards a sustainable and resilient energy future.”
Gevorg Sargsyan, the Country Manager for the World Bank Group in Sri Lanka and the Maldives, added, “Dependable and cost-effective power is crucial for fostering investment and growth. This investment, which is IFC’s first infrastructure energy transaction since the crisis and the first energy deal in Sri Lanka in over a decade, illustrates how private capital, combined with appropriate reforms and collaboration with partners like WindForce, can propel the nation’s energy transition while reinforcing energy security, enhancing competitiveness, and promoting job creation.”
In conclusion, by aligning private investment with the World Bank Group’s strategic initiatives, IFC is playing a vital role in mitigating risks within Sri Lanka’s renewable energy sector, attracting capital, and accelerating the development of solar energy and battery storage systems. The overarching aim is to lower electricity costs, strengthen energy security, and establish a more resilient energy framework that supports Sri Lanka’s economic recovery and long-term competitiveness.
