BIOMASS ENERGY 2022

01. Policy-institutional support for effective fuel-switching using fuel wood

This component is intended to address barriers related to the lack of supply of sustainably produced fuel wood in the industrial (and commercial) sector. The expected outputs that will help realize this outcome are detailed below, and focus on strengthened institutional capacities and improved cooperation between various government agencies and private sector to promote sustainable production, supply and use of fuel wood (in industrial thermal applications).

02. Barrier removal for sustainable fuel wood production

This component will address technical and coordination issues that hinder large scale fuel wood plantations and biomass supply. It is designed to address the lack of confidence in both supply (fuel wood production/ sourcing biomass) and demand (industrial needs) sectors by raising awareness, developing standards and sustainable fuel wood certification schemes, demonstrating viability of plantations through a livelihood-based approach with a broader scope for its application and implementation at the national level.

03. Enabling environment for fuel wood suppliers

This component is primarily aimed at building the enabling environment for commercial investment for fuel wood suppliers and biomass energy technology companies, in order to build a larger local market for sustainably grown fuel wood. The Ministry of Power and Energy (MOPE) itself, realizing the dire need for sustainable and viable fuelwood suppliers (exchanges) has initiated a plan to establish fuelwood depots with the participation of non-governmental or private sector entities, supported by technology providers and banks. The expected outcome from this component is increased number of investment projects from commercial banks, and increased the confidence in the industrial sector on the longer term sustainability of supply.

04. Wood-based energy technology development

This component aims at promoting the commercialization of improved and modern biomass energy technologies for both heat and power applications in the industrial sector in Sri Lanka. GEF resources will be used to finance incremental activities that would ensure the effective implementation of bioenergy technologies (BETs) such as technical and financial feasibility analysis, and monitoring of operation and performance of the installed demonstration projects etc. Such pilots are intended to demonstrate to the government and the private sector (particularly in the energy, industry, and banking/financial sectors), the techno-economic viability and benefits of BETs, especially modern technologies with high efficiency. The demonstrations will be carried out to showcase the planning, design, engineering, financing, and installation, operation, maintenance and performance evaluation of a range of BETs (gasification, combustion and energy-efficiency improvements in biomass-fired boilers, furnaces dryers and kilns).