SRI LANKA SUSTAINABLE ENERGY AUTHORITY ACT

Arrangement of Sections

1. Short title.

PART I

establishment of the sri lanka sustainable energy authority

2. Establishment of the Sri Lanka Sustainable Energy Authority.

3. Constitution of the Board of Management of the Authority.

4. Objects of the Authority.

PART II

Powers, Duties and Functions of the Board

5. Powers, duties and functions of the Board.

6. Delegation of powers, duties and functions of the Board.

7. Preparation of resource maps and renewable energy resources inventory.

8. Renewable Energy Resource Development Plans.

PART III

Project Approving Committee and Advisory Committees

9. Appointment of Advisory Committees.

10. Project Approving Committee.

11. Functions of the Committee.

PART IV

Declaration of Energy Development Area

12. Declaration of a Energy Development Area.

13. Authority responsible for conserving renewable energy resources within a Development Area.

14. Owner or occupier prohibited from certain acts.

15. Republic to have ownership to renewable energy resources within a Development Area.

PART V

On-Grid and Off-Grid Renewable Energy Projects

16. On-grid renewable energy projects.

17. Provisional approval to be granted.

18. Final approval.

19. Payment of royalty.

20. Authority not to be liable to pay damages or cost of any expenditure incurred.

21. Cancellation of a permit.

22. Appeals against refusal to grant approval or cancellation of a permit.

23. Off-grid renewable energy projects.

24. Procedure for obtaining relevant concurrence and confirmation for off-grid renewable energy projects.

25. Decision of the Committee to be communicated to the applicant.

26. Period of validity of a permit and charges to be paid.

27. Cancellation of a permit.

28. Appeals against refusal or cancellation of a permit.

29. Developer or permit holder to exercise due diligence.

PART VI

Acquisition and leasing of Immovable Property for Projects

30. Compulsory acquisition of land for the Authority under the Land Acquisition Act.

31. State property to be made available to the Authority.

32. Lease of land or interest in land held by Authority.

33. No action to lie in respect of the cancellation of a lease agreement.

34. Removal of movable property from location or site.

PART VII

Energy Efficiency and Conservation Programmes

35. Energy efficiency and conservation programmes.

36. Establishment of energy consumption benchmarks.

37. Consumption of energy beyond acceptable limits.

38. Accreditation of energy managers, energy auditors etc.

39. Conduct of energy audits.

40. Delivery of rural energy services.

41. Energy policy development and information management.

42. Annual report on energy consumption.

PART VIII

Finance

43. Capital of the Authority.

44. Fund of the Authority.

45. Levy of cess on imports of fossil fuel products.

46. Sri Lanka Sustainable Energy Fund.

47. Sustainable Energy Guarantee Fund.

48. Borrowing powers of the Board.

49. Government guarantee.

50. Financial year and audit of accounts.

51. Application of Part II of the Finance Act, No. 38 of 1971.

PART IX

Staff of the Authority

52. Director-General of the Authority.

53. Director-General may delegate his functions.

54. Temporary absence of the General Manager.

55. Appointment of staff of the Authority.

56. Appointment of public officers to the staff of the Authority.

57. Appointment of officers in public corporations or Higher Educational Institutions to the staff of the Authority.

58. Special and General directions to be issued by the Minister.

PART X

GENERAL

59. Power to require maintenance of records and the furnishing of returns.

60. Power of Authority to call for information.

61. Entry and inspection of buildings and premises.

62. Offences.

63. Offences committed by a body of persons.

64. Expenses to be paid out of the Fund of the Authority.

65. Authority deemed to be a Scheduled Institution.

66. Members officers etc., deemed to be public servants.

67. Regulations.

68. Rules.

69. Repeal and saving.

70. Interpretation.

71. Existing projects.

72. Sinhala text to prevail in the event of any inconsistency.

SCHEDULE

35 of 2007.

AN ACT to provide for the establishment of the Sri Lanka Sustainable Energy Authority; to Develop Renewable Energy Resources; to declare Energy Development areas; to implement energy efficiency measures and conservation programmes; to promote Energy Security, Reliability and cost effectiveness in energy delivery and information management; to repeal the Energy Conservation Fund Act, No. 2 of 1985 and to provide for matters connected therewith or incidental thereto.

[Date of Commencement: 18th September, 2007]

1. Short title.

This Act may be cited as the Sri Lanka Sustainable Energy Authority Act, and shall come into operation on such date as may be appointed by the Minister by Order published in the Gazette (hereinafter referred to as the "appointed date”).

PART I

establishment of the sri lanka sustainable energy authority

2. Establishment of the Sri Lanka Sustainable Energy Authority.

(1) There shall be established an authority which shall be called the Sri Lanka Sustainable Energy Authority (hereinafter referred to as the "Authority”).

(2) The Authority shall by the name assigned to it by subsection (1), be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

3. Constitution of the Board of Management of the Authority.

(1) The management and administration of the affairs of the Authority shall be vested in a Board of Management (hereinafter referred to as "the Board”) which shall consist of—

(a) the following ex-officio members—

(i) the Secretary to the Ministry of the Minister in charge of the subject of Power and Energy or his nominee;

(ii) the Secretary to the Ministry of the Minister in charge of the subject of Local Government and Provincial Councils or his nominee;

(iii) the Secretary to the Ministry of the Minister in charge of the subject of Industries and Investment Promotion or his nominee;

(iv) the Secretary to the Ministry of the Minister in charge of the subject of Lands or his nominee;

(v) the Secretary to the Ministry of the Minister in charge of the subject of Agriculture or his nominee;

(vi) the Secretary to the Ministry of the Minister in charge of the subject of Plantation Industries or his nominee;

(vii) the Secretary to the Ministry of the Minister in charge of the subject of Environment or his nominee;

(viii) the Secretary to the Ministry of the Minister in charge of the subject of Irrigation and Mahaweli Development or his nominee;

(ix) the Secretary to the Ministry of the Minister in charge of the subject of Transport or his nominee;

(x) the Secretary to the Ministry of the Minister in charge of the subject of Finance or his nominee;

(xi) the Secretary to the Ministry of the Minister in charge of the subject of Science and Technology or his nominee; and

(xii) the Director-General of the Public Utilities Commission of Sri Lanka:

Provided that where two or more of the subjects specified in sub-paragraphs (i) to (xi) of this paragraph are assigned to or remain in charge of a single Minister, the Secretary to the Ministry of that Minister or where more than one Secretary is appointed to such Ministry, then one of such Secretaries alone, shall become a member of the Board under this paragraph;

(b) the following persons to be appointed by the Minister (hereinafter referred to as "appointed members”)—

(i) a representative of the Sri Lanka Energy Managers Association, nominated by such Association;

(ii) a person to represent the development finance banks in Sri Lanka, nominated by the Governor of the Central Bank of Sri Lanka;

(iii) a person to represent the renewable energy industry;

(iv) a representative of the Ceylon Chamber of Commerce, nominated by such Chamber;

(v) three persons who are qualified and have proven knowledge and experience in the field of business, engineering, finance, management or law;

(vi) a person to represent the rural energy service sector; and

(vii) a person having experience in the area of renewable energy development or energy conservation and efficiency, who shall be the Chairman of the Board.

(2) The provisions of the Schedule to this Act shall apply to and in relation to the members of the Board, its meetings and the seal of the Board.

4. Objects of the Authority.

The objects of the Authority shall be to—

(a) identify, assess and develop renewable energy resources with a view to enhancing energy security and thereby derive economic and social benefits to the country;

(b) identify, promote, facilitate, implement and manage energy efficiency improvement and energy conservation programmes for use of energy in domestic, commercial, agricultural, transport, industrial and any other relevant sector;

(c) promote security, reliability and cost- effectiveness of energy delivery to the country, by policy development and analysis and related information management; and

(d) ensure that adequate funds are available for the Authority to implement its objects, consistent with minimum economic cost of energy and energy security for the nation.

PART II

Powers, Duties and Functions of the Board

5. Powers, duties and functions of the Board.

The Board shall exercise, perform and discharge the following powers, duties and functions—

(a) assist the Minister in the formulation of the national policy on energy;

(b) identify, conserve and manage all renewable energy resources and appropriate conversion technologies, conversion and utilisation norms and practices, including the—

(i) preparation, maintenance and updating of an inventory of all renewable energy resources in Sri Lanka, indicating the geographical location of sites, exploitable potential, land ownership and existing infrastructure facilities; and

(ii) preparation, maintenance and updating of an inventory of all renewable energy technologies, indicating their level of maturity for commercial deployment and typical performance data;

(c) develop a conducive environment for encouraging and promoting investments for renewable energy development in the country, including—

(i) development of guidelines on renewable energy projects and disseminating them among prospective investors;

(ii) development of guidelines in collaboration with relevant state agencies, on evaluation and approval of on-grid and off-grid renewable energy projects;

(iii) entertainment of applications for carrying on of
on-grid and off-grid renewable energy projects;

(iv) providing assistance to investors by formulating project proposals in new types of renewable energy resources and technologies; and

(v) exploring avenues and facilitating the process of overcoming technical or any other limitations that retard the growth of renewable energy development, in accordance with the national policy on energy;

(d) analyse and recommend policies and prepare plans aimed at promoting and developing renewable energy resources, including—

(i) preparing long-term development plans with interim targets for specific technologies and promotion and facilitation of the implementation of such plans; and

(ii) devising incentive mechanisms based on principles of competitiveness and specific technologies based on actual energy production;

(e) develop a conducive environment for the encouragement and promotion of investments in renewable energy development, energy efficiency improvement and conservation, rural energy services and for ensuring the sustainability and well- being of the energy sector in the country, including—

(i) the promotion of programmes to mobilise funds for renewable energy development, promotion of energy efficiency, improvement and conservation and rural energy services through credit enhancement and other facilities; and

(ii) the provision of funds, including subsidies and seed capital for pilot projects in renewable energy development, energy efficiency improvement, conservation and rural energy services that reduce the dependence on imported energy;

(f) provide technical and financial assistance for capacity building of the energy sector stakeholders and for research and development activities carried out by any stakeholder, consistent with the objects of the Authority;

(g) function as a National Technical Service Agency of Clean Development Mechanism (CDM) in Sri Lanka that provides technical assistance to the Designated National Agency for Clean Development Mechanism and project developers, on energy sector clean development project activities, including—

(i) design, develop and implement innovative schemes that assist project developers to overcome barriers and access commercial financing; and

(ii) facilitate and assist project developers to access concessionary finances made available under any environment protection initiative by any organisation;

(h) conduct preliminary studies and investigations in any geographical area to ascertain the renewable energy potential;

(i) collect necessary data and carry out renewable energy resource planning and assessment within any Development Area, subject to any directions that may be given by the Minster;

(j) obtain relevant data required for renewable energy planning and assessment, from any public or private institutions or any other sources;

(k) monitor, refine and follow up the approval process of on-grid and off-grid renewable energy projects in consultation with relevant agencies and to provide technical and other logistical assistance and facilities to such agencies to simplify the procedural requirements and to accelerate the project approving mechanism;

(l) facilitate the access to green funds for investors in
on-grid and off-grid renewable energy projects, for energy efficiency improvement and conservation measures and
rural energy services;

(m) provide funds and design, develop and implement credit enhancement facilities, such as loan guarantee schemes and access to commercial credit for investors in on-grid and off-grid renewable energy projects, investments in energy efficiency improvement and conservation and knowledge management in the energy sector;

(n) enter into joint schemes with any person approved by the Minister, to achieve the objects of the Authority;

(o) render professional services and undertake projects connected with the development of renewable energy resources and the improvement of energy efficiency, energy conservation and demand management for and on behalf of state and private sector organisations, and charge as fees such amounts as may be determine by the Board; and

(p) initiate and implement any other programmes and do any other acts as may be necessary or conducive to the attainment of the objects of the Authority.

6. Delegation of powers, duties and functions of the Board.

(1) The Board may subject to such conditions as may be specified in writing, delegate to the Chairman of the Board or to any officer or employee of the Authority, any of its powers, duties or functions under this Act, and the Chairman or such officer or employee shall exercise, perform or discharge such power, duty or function subject to any special or general directions that may be issued by the Board.

(2) Notwithstanding any delegation made under subsection (1), the Board may exercise, perform or discharge any such power, duty or function so delegated.

7. Preparation of resource maps and renewable energy resources inventory.

(1) The Director-General shall within six months of the appointed date, cause a survey and a resource assessment to be commenced of all renewable energy resources in the country and prepare a renewable energy resources inventory and a renewable energy resource map in respect of each Development Area.

(2) In preparing the renewable energy resource map and the renewable energy resource inventory under subsection (1), the Director-General shall have regard to relevant data, information, maps, documents or reports collected or compiled by Government Departments, Institutions and any other agencies or persons and it shall be the duty of the Heads of such Departments, Institutions or other agencies or persons to furnish any such data, information, maps, documents or reports as may be reasonably required by the Director-General for the purpose of preparing renewable energy resource maps and renewable energy resource inventories.

8. Renewable Energy Resource Development Plans.

(1) The Director-General shall not later than three years after the appointed date, submit to the Board a comprehensive Renewable Energy Resource Development Plan (hereinafter referred to as "the Plan”) based on the results of the survey and the renewable resource assessment carried out under section 7.

(2) The Board shall, within thirty days from the date of receipt of such Plan, make modifications, if any, to such Plan and submit the same to the Minister.

(3) The Minister shall by a notice published in one newspaper each in the Sinhala, Tamil and English languages, notify the place and times at which the Plan submitted to him under subsection (2) is available for inspection by the public and invite the public to make its comments, if any, thereon, within thirty days of the publication of such notice.

(4) At the end of the period of thirty days referred to in subsection (3), the Minister may, having regard to any comments submitted to him by the public under that subsection, provisionally approve the Plan subject to such modifications, if any, as he may consider necessary and shall submit the same to the Cabinet of Ministers for its approval.

(5) Upon approval of the Plan by the Cabinet of Ministers, the Minister shall cause such Plan to be published in the Gazette and it shall come into operation on the date of such publication or on such later date as may be specified therein.

(6) The Plan shall be revised by the Board once in every three years commencing from the date of coming into operation of the Plan, and the provisions of subsections (2), (3), (4) and (5) shall, mutatis mutandis, apply to and in respect of every such revision.

(7) The Minister may on the recommendation of the Board, prescribe such measures as may be necessary to give effect to the Plan and to the strategies referred to therein.

PART III

Project Approving Committee and Advisory Committees

9. Appointment of Advisory Committees.

(1) The Board may from time to time establish such Advisory Committees as it may consider necessary or appropriate, consisting of such persons selected from among persons having academic or professional qualifications or representing professional institutions or non-governmental organisations, to assist it in the exercise, discharge and performance of its powers, duties and functions under this Act.

(2) The Board may assign to an Advisory Committee established under subsection (1), such of its powers, duties or functions as it may consider necessary, but however the Board shall not be divested of any such power, duty or function so assigned. The Board shall have the power to amend or revoke any decision made by an Advisory Committee.

(3) The members of an Advisory Committee appointed under subsection (1) may be paid out of the Fund of the Authority, such allowances as the Minister may determine with the concurrence of the Minister in charge of the subject of Finance.

10. Project Approving Committee.

(1) There shall be established a Project Approving Committee which shall consist of the following members—

(a) Director-General of the Central Environmental Authority appointed under the National Environmental Act, No. 47 of 1980;

(b) Conservator-General of the Forest Conservation Department appointed under the Forest Ordinance;

(c) Director-General of the Wild life Conservation Department Appointed under the Fauna; and Flora Protection Ordinance;

(d) Director-General of the Irrigation Department appointed under Irrigation Ordinance;

(e) Director-General of the Mahaweli Authority of Sri Lanka established by the Mahaweli Authority of Sri Lanka Act, No. 23 of 1979;

(f) General-Manager of the Ceylon Electricity Board appointed under the Ceylon Electricity Board Act, No. 17 of 1969;

(g) Land Commissioner appointed under the Land Development Ordinance;

(h) Director-General of the Board of Investment of Sri Lanka appointed under the Lanka Board of Investment of Sri Lanka Law No. 4 of 1978;

(i) Director-General of the Coast Conservation Department appointed under the Coast Conservation Act, No. 57 of 1981;

(j) Director-General of the Authority;

(k) Divisional Secretary of the Divisional Secretary's Division within which a development project is to be implemented; and

(l) Chief Secretary of the Provincial Council established for the province within which a development project is to be implemented.

(2) The Minister may nominate one person from among the members of the Committee, other than the member referred to in paragraph (k) of subsection (1), as the Chairman of the Committee.

(3) The Director-General of the Authority shall function as the convenor of all meetings of the Committee.

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