Construction has begun on a significant infrastructure initiative to strengthen Sri Lanka's electricity transmission network and enable greater renewable energy integration, with the first substation being built in Homagama.
A USD 328.25 million project to modernise Sri Lanka's power transmission infrastructure commenced construction yesterday with the laying of foundations for a new grid substation in Homagama. The initiative, supported by concessional financing from the Asian Development Bank, aims to enhance the reliability of the national electricity system while creating the necessary infrastructure to accommodate renewable energy sources.
Power and Energy Minister Anura Karunathilaka stated that the project would strengthen electricity supply security, increase system capacity, and address voltage-related issues affecting the grid. The modernisation programme is expected to support broader economic development across industrial, commercial, and tourism sectors that depend on stable electricity supply.
The Power System Strengthening and Renewable Energy Integration Project is structured in multiple phases. Implementation will be coordinated across three entities: the National Transmission Network Service Provider, the National System Operator, and Lanka Electricity Company. The initiative includes construction of new substations at several locations, approximately 78 kilometres of transmission lines connecting Hambantota and Matara, underground cable installations, and the development of a grid-scale battery storage system.
Earlier phases outlined in the project plans include substations at Meerigama and Peliyagoda, while the current phase focuses on facilities at Homagama and Negombo. The programme also encompasses a dedicated Renewable Energy Centre, positioning Sri Lanka's grid to accommodate increased clean energy generation as part of broader energy transition objectives.
