Sri Lanka to develop Rs243bn Maha Oya pumped storage hydro project

Sri Lanka’s cabinet has cleared a proposal for the Ceylon Electricity Board (CEB) to develop the Maha Oya pumped storage hydropower project at a cost of 243.09 billion rupees, minister Nalinda Jayatissa said.

The project is designed to act as a grid-scale energy storage solution to store excess energy generated from renewable sources.

“It is expected to enable the storage of energy during periods of low demand and the supply of such stored energy to the power system during periods of high demand,” Jayatissa told reporters.

The project is essential for integrating more renewable energy into the country’s power mix, he said.

The project will have a development phase followed by a construction phase.

Funding for the 243.09 billion rupee initiative will be managed under the provisions of the Public Debt Management Act No. 33 of 2024, Jayatissa said.

Pumped storage technology is increasingly seen as a vital tool for Sri Lanka as it shifts away from fossil fuels.

It functions like a giant battery, using surplus electricity to pump water to an upper reservoir, which is later released through turbines to generate power when the grid faces a deficit.