4. Formulation of the national electricity policy and issue of policy guidelines

developing the power system to meet the estimated demand while ensuring affordability, energy security and aligning with the Government’s international commitments for decarbonisation and enhancing consumer satisfaction through competitive tariffs and reliability in electricity supply;

technologies to be used in connection with the generation of electricity and demand side technologies to promote energy efficiency;

incentivize investments in energy technologies such as renewable energy, energy storage and energy efficiency which increase national energy security and reduce the dependence on imported fossil fuel sources;

ensuring financial viability of the Electricity

introducing competition in the procurement of new generation, transmission and energy storage capacity and specifying the preconditions and milestones for the establishment of the Wholesale

mobilizing investment needed for sustainable growth of the Electricity Industry to achieve

national tariff policy formulated in consultation with the Ministry of Finance and the Ministry of

including national policy on energy which shall be revised, from time to time; and

identifying priorities and measures towards meeting the objects of the Act.

Upon the completion of the formulation of the draft national electricity policy by the Council in terms of subsection (3) and after adequate public stakeholder consultation, the Minister shall, upon being satisfied that such draft national electricity policy is consistent with the provisions of this Act and the national policy on energy, forward such draft policy to the Cabinet of Ministers for its approval.

The Cabinet of Ministers may review the policy forwarded to the Cabinet of Ministers under paragraph (a)

provide guidance with respect to the following: -

facilitating Electricity Industry reform;

ensuring the implementation of the national electricity policy to meet the projected demand growth in accordance with other policy objectives and targets with respect to energy security and environmental sustainability;

estimating the requirement for electricity in Sri Lanka in order to attain national targets for sustainable development of the

identifying incentives to be adopted for achieving national targets for increasing the renewable energy and enhancing energy security of the country in an affordable and sustainable manner;

facilitating the implementation of the national tariff policy specified in section 29;

identifying the principles and policies to be followed in initiating electricity market reforms for the introduction of competition and consumer choice;

ensuring at all times, the availability of a reliable and affordable supply of electricity to the consumers which would be adequate to ensure adequate cashflows to cover the operating expenses, debt service and reasonable return on equity of licensees; and

guiding on the nature of Electricity Industry performance reports to be published; and

provide guidance, in consultation with the

market-based incentives to promote the renewable energy in terms of the national electricity policy;

incentive policies for energy storage and other economical energy sources to ensure reliability and energy security;

measures required for the introduction of competition through open access and establishment of wholesale electricity market; and

to prepare the Long Term Power System

Subject to any relevant written law, the

The Regulator and the National System Operator may notify the Minister of any difficulties which may arise in giving effect to the policy guidelines. The Minister shall, in consultation with the Regulator and the National System