By Verangika Upananda
As South Asia grapples with rising energy demands, economic uncertainties, and commitments under international climate agreements, it is increasingly poised to adopt renewable energy as the path forward. However, the energy transition from fossil fuel to renewable energy is fundamentally a political rather than a technical or financial one.
In Sri Lanka, the renewable energy transition is fairly a new topic, shaped by embedded power structures, geopolitical calculations, and grassroots resistance. In Sri Lanka, the energy sector has conventionally been centralised, dominated by state utilities.
Despite bold national renewable targets at present, the shift to clean energy is often constrained by institutional inertia and international interests. The cases of Sampur and Mannar illuminate the politics of reversal and highlight opportunities for a more inclusive and democratic approach to energy planning in Sri Lanka’s future.
The political economy of energy refers to the ways in which power, politics, and institutions shape the production, distribution, and governance of energy resources. Sri Lanka is a miniature of these dynamics. According to the Generation Expansion Plan 2023-2042 issued by the Ceylon Electricity Board, the dominant state utility has committed to generating 70% of its electricity from renewables by 2030, but the implementation of this vision remains uneven and politically uptight.
The Ceylon Electricity Board has been accused of resisting decentralisation and renewable integration due to vested interests in fossil fuel infrastructure. Moreover, foreign investment and regional rivalries play critical roles in shaping which projects move forward.
Given that renewable energy policy development for the Sampur Solar Power Plant and the Mannar Wind Energy Hub remains in its early stages under the current government, it is crucial to explore how the energy transition could meaningfully benefit local communities and contribute to a more democratic and inclusive approach to energy planning in the future.
Sampur Solar Power Plant: The Politics of Reversal
The Sampur Solar Power Plant in Trincomalee in the Eastern Province illustrates how energy transitions are deeply political in Sri Lanka. Initially proposed as a coal power project in the early 2000s, it was structured as a joint venture between the Ceylon Electricity Board and National Thermal Power Corporation of India, a public-sector undertaking under India’s Ministry of Power. Together, they formed the Trincomalee Power Company Ltd, with equal ownership.
In 2016, the Supreme Court ruled against the project, and the project was officially cancelled. The local communities opposed the project from the outset, primarily due to negative environmental impact and land acquisition issues. In 2021, the government announced that this power plant would be a solar power plant that produces 100 MW of electricity.
With a new government elected in 2024, it was confirmed that the Sampur project would continue as a solar power plant. This marks the rare instance of the “politics of reversal” – a thoughtful shift away from fossil fuel-intensive infrastructure.
This reversal was influenced not only by environmental concerns but also by India’s shifting energy diplomacy under Prime Minister Modi, who began championing solar energy as a regional priority. It illustrates how energy decisions are contingent on changing political alliances, diplomatic pressures, and strategic recalculations. Yet, questions remain: who owns and benefits from the new solar projects? Are local communities empowered or displaced by this transition?
Mannar Wind Energy Hub: Wind and Dynamics of Delays
The Mannar Wind Power Project offers another perspective on the contested nature of renewable energy. Mannar’s location also brings it under the radar of regional geopolitics. Situated on the northwestern coast, it is strategically important, and both Indian and Chinese interests have contested for influence in infrastructure development.
The project aligned with international climate policy goals and was supported in its first phase by the Asian Development Bank. The infrastructure contract was awarded to Vestas Asia Pacific, a Danish wind technology firm, through international competitive bidding under a formalised procurement process. It is Sri Lanka’s largest wind energy initiative, commissioned in 2020.
The Adani Group of Companies from India initially agreed with the previous government to finance the project in its second stage. However, following the cost renegotiation with the current regime, Adani withdrew from the project. Subsequently, the government offered Hayleys Fentons Limited a 50 MW wind project in Mannar. It remains raising broader questions about how national planning and local participation intersect or collide in renewable energy development.
Democratizing Energy Planning
If the goal is a sustainable energy future, then the transition process must be democratised, especially because these projects are unfolding within democratic societies. This requires more than merely adopting renewable technologies; it calls for a fundamental rethinking of how energy is planned, governed, and accessed. In Sri Lanka, democratizing energy planning would entail decentralising the authority of the Ceylon Electricity Board and enabling community-owned energy systems.
However, this is likely to be a contested issue, particularly concerning the projects in Sampur and Mannar, as these are indirectly tied to the sensitivities surrounding the 13th Constitutional Amendment. Setting that aside, other critical steps include ensuring transparency and accountability in foreign investments, prioritising environmental and social impact assessments that meaningfully engage affected communities, and establishing legal frameworks that promote energy justice, not just energy security.
At the regional level, the South Asian Association for Regional Cooperation (SAARC) could take a more proactive role by initiating dialogue around shared sustainability objectives, drawing inspiration from the European Union’s coordinated energy efforts, particularly in the wake of the Russia–Ukraine crisis.
While direct comparisons between the EU and SAARC may be imperfect, given the developmental disparities, the principle of regional cooperation remains relevant. In many SAARC countries, where sectors such as power and transport are still largely centralised, ensuring equitable access, much like universal healthcare and education, is considered a state responsibility.
Nevertheless, cross-border knowledge sharing, grid connectivity, and joint renewable energy projects could offer a pathway to build regional trust and energy equity gradually. Even a modest beginning in collaborative discussions could lay the groundwork for a more integrated and resilient energy future in South Asia.
Renewable Energy: Toward Justice
The transition to renewable energy in South Asia is not just about replacing coal with solar, wind or hydro. It is about who holds power, who benefits from change, and who gets left behind. The stories of Sampur and Mannar reveal the importance of political will, community agency, and international influence in shaping outcomes.
If South Asia is to lead a true green transition, it must confront the politics within its power sector. Only by democratizing energy planning can the region achieve not just energy transformation, but energy justice.
References
1. NewsFirst.lk (2024, October 25) Committee to review renewable energy projects in Sri Lanka https://www.newsfirst.lk/2024/10/25/committee-to-review-renewable-energy-projects-in-sri-lanka
2. Daily Mirror (2024) CEB accused of blocking renewable energy to push thermal power: A growing energy mafia https://www.dailymirror.lk/breaking-news/CEB-accused-of-blocking-renewable-energy-to-push-thermal-power-a-growing-energy-mafia/108-309993
3. University of Sri Jayewardenepura – Centre for Sustainability Sri Lanka: Energy Empowered Nation – Research Findings (Date not specified; likely 2023–2024) https://sustainability.sjp.ac.lk/uploads/Sri-Lanka-Energy-Empowered-Nation-Research-Findings.pdf
4. Ceylon Electricity Board (CEB) Official Website https://www.ceb.lk/
5. Groundviews (2016, July 21) Is the air pollution analysis for the Sampur coal plant credible? https://groundviews.org/2016/07/21/is-the-air-pollution-analysis-for-the-sampur-coal-plant-credible
6. Sovacool, Benjamin K. (2017) Reviewing, Reforming, and Rethinking Global Energy Subsidies: Towards a Political Economy Research Agenda Ecological Economics, Volume 135. https://doi.org/10.1016/j.ecolecon.2016.12.009
7. Sovacool, Benjamin K. (2016) How long will it take? Conceptualizing the temporal dynamics of energy transitions Energy Research & Social Science, Volume 13. https://doi.org/10.1016/j.erss.2015.12.020
Verangika Upananda is a researcher with dual Master’s degrees in Development Studies from the University of Colombo, Sri Lanka, and the University of Bayreuth, Germany. Her work focuses on resource politics, gender, and sustainable energy transitions, with field experience in the Democratic Republic of Congo, India, and Sri Lanka. She has also worked in development consultantcy and Visiting Lecturer in Economics at the Open University of Sri Lanka.
Factum is an Asia-Pacific-focused think tank on International Relations, Tech Cooperation, and Strategic Communications accessible via www.factum.lk
The views expressed here are the author’s own and do not necessarily reflect the organization’s.
