The Cabinet of Ministers has approved the award of tenders for the installation of a 160 MW / 640 MWh Battery Energy Storage System (BESS), marking a major milestone in Sri Lanka’s efforts to modernise its electricity grid and expand the use of renewable energy.
The approval follows a Cabinet Memorandum submitted by the Minister of Energy, Eng. Kumara Jayakody, focusing on the need to address one of the key challenges in maximising solar power, energy storage. The proposed battery systems will store excess electricity generated from solar sources and release it to the grid when needed, improving stability and reliability.
Under the new government’s programme, 16 independent battery energy storage systems of 10 MW / 40 MWh each will be installed at 16 major grid substations across the country, totalling 160 MW / 640 MWh. Tenders for the project were first called on 30 July 2025, with the initial closing date set for 16 September 2025. Due to high interest, the tender period was later extended to 14 October 2025.
A total of 153 bids were received for the 16 substations. After a detailed evaluation process, the Independent Tender Committees submitted their recommendations based on technical, financial, and operational criteria specific to each substation.
The Cabinet granted final approval for the project yesterday (2 January 2026), following the completion of the required procurement procedures. The project will be implemented under the Build, Own and Operate (BOO) model, in line with a Cabinet decision taken on 28 April 2025.
Once completed, the battery energy storage systems are expected to significantly enhance grid flexibility, reduce reliance on fossil fuels, and support Sri Lanka’s transition towards a cleaner and more resilient energy sector.
