Sri Lanka has reached  the national electrification ratio of 94%, which is a substantial  improvement in the power sector compared with electrification level of 70% by end of 2005. The Ministry has launched  an ag- gressive electricity grid extension program to reach 100% electricity access to entire population, at all times, in the country by end of 2012.  In order to achieve this target, a separate  project for each of the Provinces was established with financial assistance from international  lending organizations  and with GOSL funding. During the year until 30th  September 2012, 227,913 new electricity supply connections were established with the completion  of 585 new rural electrification schemes and 4278 extensions.

A number of new transmission projects have been initiated during 2010-2012 with financial assistance from ADB and JICA, in order to enable  the evacuation  of power from new generation facilities, ensure the reli- ability and quality of electricity supply, and to integrate renewable  sources into the grid. The transmission projects initiated during this period included construction of 475.5km of new 220kV lines, 629km of 132 kV lines, 26 of new 220 and 132 Sub-Stations and rehabilitation of 23 Sub-Stations. Special emphasis was given to improve the reliability of transmission network of Northern and Eastern Provinces.

To improve the reliability and to maintain  a quality of electricity supply in the distribution  network, new projects were initiated to enhance the 33 kV medium voltage network in the country while improving the quality of low voltage distribution  network.  Special emphasis was given to reduce the system losses. The overall system losses were reduced to 13.9% by 2012 compared with 24 % in 2005.

To ensure the  generation capacity of the system with 3500 MW by 2012 and 6400 MW by 2025 and  to re- duce the generation cost by adding aggregate base load capacity of 2000 MW of coal fired power plants, the generation capacity of the system was enhanced. The phase I (300MW) of the first Coal Power Plant of

900MW in the country was commissioned in March 2011 adding 300 MW to the system. The second phase of Puttalum LakWijeya power plant with 600 MW of capacity is under construction. The first 300 MW of Putta- lama Lakvijaya Plant Phase II  is scheduled to commission in October 2013 and the second 300 MW of Phase II will  be available from May 2014. The 150 MW Upper Kothmale Plant commenced its commercial operation in July 2012. The construction of Uma Oya Hydro Power projects of 120MW is in progress and  scheduled to commission  by 2014. In order to meet the power demand and to strengthen the reliability of the power system in the Northern Province, construction of a heavy fuel operated power plant of 25MW in Jaffna is in progress and will commence its commercial operation by end of 2012 .

In  addition  above  projects,  early implementation of Broadlands  Hydro Power Project with 35MW and detailed feasibility of Moragolla Hydro Power Project 27MW were pursued by the Ministry during the year. The total  electricity generation from 1st January up to 30th October 2012 was 11528 GWh, of which 59% was

from oil burning and coal thermal power plants while 35%  from major hydro power and the balance  6% was from on-conventional renewable energy sources.

In order  to  meet  the  Government  objective  of meeting   10% of electricity  generation through   non- conventional  renewable  energy resources by 2015, the development of small non-conventional renewable energy  plants  below 10 MW capacities  were promoted under  Standardized  Power Purchase  Agreement (SPPA). During 2010-2012 period 116 plants with aggregated capacity of 275MW were connected to the grid. These plants included 214 MW of Mini Hydro, 45 MW of Wind Power, 1.2 MW of Solar Energy and 11 MW Dendro Power.

In addition  to the promotion of large scale grid connected renewable  energy projects, net metering  was introduced in Sri Lanka for promotion of distributed small PV applications  and other  renewable  sources, where customers would be able to generate small amounts of renewable  energy through  solar PV systems installed on their roof tops, ‘export’ the energy  generated to the national grid, and only pay for the ‘net’ amount  of electricity used.

With the  extension  of national  grid throughout the  country  the  demand for off-grid systems  reduced drastically. However the Ministry initiated a program to provide electricity through off-grid renewable sources to very remote  villages and inhabited  islands. Further, the Ministry took steps to connect  the community- based micro-hydro power plants, which were operated as off-grid plants and got redundant as a result of grid extension. The first plant with a capacity of 20 kW was connected to the national grid encouraging the people living in the hilly areas to tap the hydro potential  in their surroundings and exporting  it to the national grid while generating an income for the poor villagers.

The Ministry has placed very high priority on electricity demand management and efficient use of energy  as a cost-effective, environmentally sound complement to capacity-addition  strategies in power. The National Energy Management Plan was introduced for Sri Lanka covering a period of 5 years from 2012 to 2016. It will serve as a guide for Sustainable  Energy Authority (SLSEA) to embark on an integrated and cohesive programme of work with a long term perspective to realize better energy efficiency in all energy consuming sectors of Sri Lanka. In addition to the consumer awareness programs, regulation on appointment of energy manager/energy auditor  and  energy  consumption reporting  for large  industrial  consumers, minimum energy standards  and energy labeling for commonly use appliances were introduced.

• Formulation of policies, programmes and projects, monitoring and evaluation in regard to the subjects of power and renewable energy and those subjects that come under the purview of Departments, Statutory Institutions and Public Corporations under the ministry of power and renewable energy
• Formulation of an appropriate power policy for the control, regulation and utilization of power resources
• Investigation, planning, monitoring and development of activities relating to generation of power from sources, such as water, heat, coal and wind
• Rural electrification
• Management of demand to ensure energy efficiency, and development of renewable power
• Development of Renewable Energy
• All other subjects that come under the purview of Institutions listed under the ministry of power and renewable energy
• Supervision of the Institutions listed in under the ministry of power and renewable energy

The Act provides provisions to regulate generation, transmission, distribution, supply and use of electricity in Sri Lanka.

• The provision of 24 hours uninterrupted electricity for all at all times
• The adoption of a transparent tariff policy acceptable to the Government, consumers and utilities to ensure reasonable cost recovery
• The implementation of lower cost generating plants and the adoption of open competitive transparent bidding processes for the procurement of electricity by utilities , the establishment of a transparent power plant dispatch programme 2009 and the upgrating of Management Information
• Update of provisions to be compatible with the latest technology advances and to protect the rights and advances and to protect the rights and safeguard the interests of consumers.
• Making the Ceylon Electricity Board more efficient and effective, while being made accountable for its functions to the general public, consumers and the government.

The Main wings under the purview of the Ministry of Power & Energy are:

• Ceylon Electricity Board and its subsidiary companies
• Lanka Electricity Company
• Lanka Coal Company (Pvt.) Ltd.
• LTL Holding (Pvt.) Ltd.
• Sri Lanka Sustainable Energy Authority
• Sri Lanka Atomic Energy Board
• Sri Lanka Atomic Energy Regulatory Council

• Administration Division
• Account Division
• Internal Audit
• Power & Energy  Division
• Planning & Development Division
• Technical Division
• Internal Audit