Final evaluation of the Renewable Energy Absorption Transmission Development Project (REATDP), Sri Lanka

The project aimed at improving the electricity provision in Sri Lanka:
• Increase the grid's renewable energy (RE) absorption capacity (specific outcome)
• Reduce the average cost of production across the network (general outcome)
• Enhance private sector participation in RE production (specific outcome)
• Enable climate change co-benefits of reducing greenhouse gas (GHG) emissions of the grid (specific impact).

Importance of positive and sustained regulatory and tariff regime: There was a prolonged period when IPPs could not connect due to misinterpretation of laws and a non-remunerative tariff. Private sector participation for mini-hydro development was positively impacted by the revision of the tariff regime, which needs to be cost remunerative and must be continuously updated based on AWPLR (average weighted public lending rate), fixed deposit rates, and foreign exchange rates.