Ceylex and Xingneng Secure $6 Million Contract for Kolonnawa Grid-Scale Battery Storage Project in Sri Lanka

The Government of Sri Lanka has approved the award of a contract to a joint venture between Ceylex Engineering Ltd. and Xingneng Electric Power Construction Co., Ltd. for the development of a 100 MW/100 MWh battery energy storage system (BESS) at the Kolonnawa Grid Substation.

The project represents a major step in Sri Lanka's efforts to strengthen its electricity transmission network and expand the integration of renewable energy. It will establish the country's first utility-scale battery storage facility, providing additional flexibility to manage electricity supply and support grid stability.

ADB-Funded Programme Supports Grid Modernisation

The Kolonnawa BESS development is part of the Asian Development Bank (ADB)-funded Power Grid Strengthening and Renewable Energy Integration initiative. The programme aims to improve the national electricity network and prepare it to accommodate a growing contribution from renewable energy sources.

The proposed facility will have a power capacity of 100 MW and an energy storage capacity of 100 MWh. Its installation is intended to help manage fluctuations in renewable electricity generation and improve the reliability of the national grid.

Contract Award Follows International Tender Process

The approved contract is valued at approximately USD 6 million, excluding taxes, according to the reported US dollar equivalents. The original multi-currency components comprise USD 1.27 million, USD 2.98 million, and USD 1.65 million.

The Government initially approved the Kolonnawa Grid Substation upgrade on September 2, 2024, under the renewable energy integration programme. An international competitive bidding process was subsequently launched, attracting proposals from four international bidders.

A High-Level Procurement Committee evaluated the submissions and recommended the Ceylex Engineering-Xingneng Electric Power Construction joint venture as the substantially responsive bidder. The Cabinet approved the contract award following this recommendation.

Project Aligns With Sri Lanka's Long-Term Energy Plans

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the proposed battery storage facility was aligned with the country's long-term electricity generation expansion plans.

The development is intended to strengthen the power network as Sri Lanka increases its renewable energy capacity. By providing grid-scale storage, the project is expected to support the integration of variable renewable generation and improve the electricity system's operational flexibility.