India, Sri Lanka review key power projects; reaffirm commitment to strengthening energy partnership
India and Sri Lanka held ministerial-level talks in New Delhi to review the status of bilateral power sector projects, led on the Indian side by the Union Minister of Power and Housing & Urban Affairs and on the Sri Lankan side by the Minister of Energy.
The two sides reviewed progress on the proposed India-Sri Lanka High Voltage Direct Current (HVDC) grid interconnection and the Sampur Solar Power Project in Trincomalee.
Discussions covered cross-border electricity trade, renewable energy cooperation, transmission infrastructure, and capacity building between the two countries.
India shared its experience with the Tariff-Based Competitive Bidding (TBCB) framework, a public-private partnership model used for developing transmission infrastructure, as a possible template for regional cooperation.
Grid Interconnection and HVDC Technology
An HVDC (High Voltage Direct Current) link transmits electricity as direct current over long distances or subsea cables with lower transmission losses than conventional AC lines, and can also connect two grids operating at different frequencies or that are not synchronized — a key requirement for connecting India's grid with Sri Lanka's island grid. India already operates cross-border grid interconnections with Nepal, Bhutan, and Bangladesh (mostly AC-based), and the proposed India-Sri Lanka link (via an undersea cable across the Palk Strait) would be India's first international HVDC interconnection, enabling electricity trade and strengthening the wider vision of a South Asian and eventually a "One Sun One World One Grid" (OSOWOG) regional grid.
Key Details
- India's existing cross-border power trade arrangements: Nepal, Bhutan, Bangladesh, and Myanmar (via bilateral agreements under India's Cross-Border Trade of Electricity Regulations).
- HVDC is preferred over HVAC for very long-distance and subsea transmission because it has lower line losses and does not require synchronized grid frequencies.
- OSOWOG, launched by India in 2018, envisions a global interconnected grid to transmit solar power across regions and time zones.
The proposed India-Sri Lanka HVDC interconnection would be a bilateral building block toward this larger regional/global grid vision and would allow surplus renewable power to be traded across the Palk Strait.
India-Sri Lanka Bilateral Energy Cooperation
India and Sri Lanka have deepened energy ties in recent years, including joint development of the Sampur Solar Power Project — a renewable-energy successor to the earlier, environmentally contentious Sampur coal power project plan that was shelved. The Sampur project is being executed by Trincomalee Power Company Ltd (TPCL), a joint venture between India's NTPC Ltd and Sri Lanka's Ceylon Electricity Board (CEB), on a build-own-operate basis.
Key Details
- The Sampur Solar Power Project has a planned total capacity of 120 MW, developed in two phases (50 MW followed by 70 MW).
- TPCL, the NTPC-CEB joint venture executing the project, was originally formed for the now-shelved Sampur coal power project.
- The tariff for the project has been finalised at around 5.97 US cents per unit.
This project, along with the proposed HVDC link, forms the core of the "key power projects" reviewed at the ministerial meeting and reflects India's Neighbourhood First policy applied to energy security and clean-energy cooperation with Sri Lanka.
Neighbourhood First Policy and Energy Diplomacy
India's "Neighbourhood First" policy prioritizes connectivity, infrastructure, and development cooperation with South Asian neighbours as a foreign policy pillar. Energy cooperation — including grid interconnections, fuel supply, and renewable energy projects — is a key instrument of this policy, alongside lines of credit, port development, and connectivity projects.
Key Details
- India has extended lines of credit to Sri Lanka, including energy-sector support during and after Sri Lanka's 2022 economic crisis.
- Regional power trade in South Asia is also discussed under frameworks like the SAARC Framework Agreement for Energy Cooperation (electricity), signed in 2014.
The ministerial review of these projects signals continuity in India-Sri Lanka energy diplomacy and demonstrates the practical application of the Neighbourhood First approach through infrastructure delivery.
- Sampur Solar Power Project total planned capacity: 120 MW (Phase 1: 50 MW; Phase 2: 70 MW), located in Trincomalee, Sri Lanka.
- Joint venture executing the project: Trincomalee Power Company Ltd (NTPC-CEB), with an estimated project cost of around $512 million and a finalised tariff of about 5.97 US cents per unit.
- OSOWOG (One Sun One World One Grid) was launched by India in 2018 to promote a global interconnected renewable energy grid.
- India's existing operational cross-border electricity interconnections are with Nepal, Bhutan, Bangladesh, and Myanmar; the Sri Lanka HVDC link would be India's first subsea/international HVDC interconnection.