Sri Lanka is highly dependent on imported oil to meet its energy needs with 49% of the primary energy supply coming from imported fuel, where 12% of the total government budget is used for electricity generation alone. This is leading to a heavy reliance on imported fossil fuels and increased GHG emissions. The National Energy Policy of Sri Lanka seeks to diversify supply mix with renewable energy resources whilst seeking to reduce energy demand through demand side management. The Renewable Energy Resources Development Plan seeks to achieve 20% from renewable energy re-sources by 2020 and 30% by 2030 as part of the national strategy to reduce GHG emissions through appropriate mitigation actions (NAMA). Energy Management Plan (EnMAP) seeks to achieve energy savings from the promotion of EE measures. Often the GHG savings and the cost-benefits of these low carbon interventions are not systematically quantified and their benefits remain obscure and done on ad-hoc basis. It is difficult for sub-national entities to assess the impact of their NAMA interventions at the sectors and sub-sectors level.  

In order to fill these gaps, the development of a robust, transparent and functional NAMA framework along with clear inventory and MRV system with supporting governance and oversight (NAMA Secretariat, NAMA Coordinating Entity, NAMA Implementing Entity, MRV Committee, NAMA Institutional mechanism, NAMA Approval procedure and NAMA Registry) is needed. Such framework will systematically quantify GHG savings and benefits of the mitigation interventions using a bottom up approach to aggregate from the provincial and sub-sector levels to the national and sectors level. Furthermore, such a transparent framework will open up opportunity to access regional and international climate funding. In order to achieve this, the project will support appropriate climate change mitigation actions in the energy generation and end-use sectors as part of the initiatives to achieve the voluntary GHG mitigation targets of Sri Lanka

To test and verify the framework, this project will seek to overcome the regulatory, institutional, technical, financial and social barriers for the scaling up of RE and EE NAMA through the dissemination of 1,000 bio-digesters, 1,300 high efficiency motors in tea factories, and 205 solar PV net metering systems with battery storage. Furthermore, the project will:

1. Develop a robust provincial inventory system that could be updated periodically and aggregated at the national level using web-based EnerGIS database management system

2. Develop a decision making tools such as MACC tools for analyzing and prioritizing a pipeline of bankable NAMA that could be implemented

3. Leverage public, private and CSOs resources through the NAMA Implementing Entity for the implementation of bankable RE and EE NAMAs based on viable and cost effective business models to incentivize value chain actors to reduce supply risks and create demand and

4. Develop a robust and transparent MRV system that are accurate, reliable and credible and avoid double accounting.