Policy and Regulatory Frameworks for

Integrating Renewable Energy Systems

into Circular Economy Models in Sri
Lanka

Assignment 1: Article Plan Submission

Name: G.H.A. Sajeewa Lakmal

Reg. No: 324639802
Module: DMX9205/ MRT9205 Professional Ethics and Responsibility
Programme: Master of Science in Energy for Circular Economy
Date: 18th June 202
G.H.A. Sajeewa Lakmal Reg. No. 324639802

Policy and Regulatory Frameworks for Integrating Renewable Energy

Systems into Circular Economy Models in Sri Lanka

1. Introduction

The transition to renewable energy systems within a circular economy framework is crucial for
sustainable development, especially in emerging economies like Sri Lanka. Integrating
renewable energy sources (RES) such as solar, wind, and biomass into a circular economy
system necessitates comprehensive policy and regulatory frameworks. These frameworks must
drive innovation, enhance efficiency, and promote sustainability. This literature review aims
to explore existing research on policy and regulatory frameworks supporting renewable energy
systems in circular economies, with a specific focus on Sri Lanka. It seeks to identify gaps,
challenges, and opportunities within this context.

2. Research Questions.

The followings are some research questions related to the integration of renewable energy
systems into a circular economy framework in Sri Lanka:

1. How can policy coherence be improved to better align Sri Lanka's renewable energy
targets with circular economy principles?
2. What are the key challenges hindering the effective integration of renewable energy
systems (RES) into Sri Lanka's circular economy, and how can these challenges be
addressed?
3. What role do regulatory mechanisms play in promoting the adoption of renewable
energy technologies within Sri Lanka's circular economy context?
4. How can stakeholder engagement and collaboration be enhanced to foster a more
supportive ecosystem for renewable energy and circular economy initiatives in Sri
Lanka?
5. What are the potential economic, environmental, and social benefits of integrating
renewable energy systems into Sri Lanka's circular economy, and how can these
benefits be maximized?
6. What lessons can be learned from other countries' experiences in successfully
integrating renewable energy into circular economy frameworks, and how can these
lessons be applied to Sri Lanka's context?
7. How can innovative financing mechanisms, such as green bonds or public-private
partnerships, be leveraged to accelerate the transition to a circular economy with
renewable energy in Sri Lanka?

These research questions can serve as a starting point for exploring the complexities and
opportunities associated with integrating renewable energy systems into Sri Lanka's circular
economy framework.

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G.H.A. Sajeewa Lakmal Reg. No. 324639802

3. Data Extraction and Synthesis

Data extraction for the integration of renewable energy systems into Sri Lanka's circular
economy framework involves gathering information on existing policies and regulatory
frameworks, renewable energy targets and initiatives, challenges and barriers, best practices
and lessons learned, and the economic, environmental, and social impacts of such integration.
This includes extracting data on specific policies, legislation, and stakeholders involved in
policy development, as well as identifying the technologies being promoted for renewable
energy adoption. Challenges hindering integration, such as policy fragmentation and
stakeholder coordination issues, are also identified. Best practices and lessons learned from
successful cases globally are gathered, along with data on the potential impacts of renewable
energy adoption on the economy, environment, and society.

Data synthesis involves analyzing the extracted data to identify patterns, trends, and
correlations between policy measures and renewable energy adoption rates. The effectiveness
of existing policies and regulatory frameworks is evaluated, considering how well they align
with circular economy principles and contribute to achieving renewable energy targets. Best
practices are synthesized to develop actionable recommendations for improving policy
coherence, stakeholder engagement, and regulatory frameworks in Sri Lanka. Additionally, the
economic, environmental, and social impacts of integrating renewable energy systems into the
circular economy are assessed, quantifying benefits such as job creation, energy security,
emissions reduction, and resource efficiency. The synthesis process culminates in the
development of data-driven recommendations to inform decision-making and drive sustainable
development in Sri Lanka's energy sector.

4. Renewable Energy Systems and Circular Economy

The circular economy concept prioritizes waste reduction and sustainable resource utilization.
Renewable energy systems, such as solar and wind power, echo this approach by offering
environmentally friendly energy solutions that reduce reliance on finite fossil fuels and lessen
environmental harm. Integrating renewable energy into a circular economy framework
demands more than technological progress; it necessitates the creation of conducive policy and
regulatory frameworks. These frameworks should incentivize renewable energy adoption,
foster innovation, and ensure sustainability across the energy sector.

5. Policy and Regulatory Frameworks

Policy and regulatory frameworks are pivotal for the effective implementation of renewable
energy systems. These frameworks encompass legislation, financial incentives, tariffs, and
standards designed to stimulate the adoption of renewable energy sources (RES). Well-crafted
policies can surmount market barriers, bolster investor confidence, and foster public acceptance
of renewable technologies.

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G.H.A. Sajeewa Lakmal Reg. No. 324639802

6. Global Perspectives

Across the globe, numerous nations have implemented robust policies to bolster renewable
energy and advance circular economy principles. For instance, the European Union's Green
Deal and Circular Economy Action Plan exemplify a holistic sustainability approach, blending
renewable energy targets with circular economy strategies. Likewise, countries such as
Germany and Denmark have leveraged tools like feed-in tariffs, subsidies, and tax incentives
to stimulate the adoption of renewable energy solutions.

7. Sri Lankan Context

Sri Lanka has made significant strides in promoting renewable energy through policies such as
the National Energy Policy and Strategies of Sri Lanka (2019). The country's renewable energy
targets aim to achieve 100% renewable energy by 2050. However, challenges remain in
aligning these targets with circular economy principles. Issues such as policy fragmentation,
lack of coordination among stakeholders, and insufficient regulatory mechanisms hinder the
effective integration of RES into a circular economy framework.

8. Challenges and Barriers

The literature identifies several challenges in implementing policy and regulatory frameworks
for renewable energy within circular economies:

1. Policy Coherence and Integration: Ensuring that renewable energy policies are
integrated with circular economy strategies is critical. Fragmented policies can lead to
inefficiencies and missed opportunities for synergy.
2. Financial Incentives and Investment: Sustainable financing mechanisms are essential
to attract investments in renewable energy projects. Inconsistent or insufficient
financial incentives can deter private sector participation.
3. Technological and Infrastructure Development: Advanced technologies and robust
infrastructure are necessary to support renewable energy systems. Policy frameworks
must address the need for innovation and development in these areas.
4. Stakeholder Engagement and Public Awareness: Engaging stakeholders and raising
public awareness about the benefits of renewable energy and circular economy
practices is crucial for successful implementation.

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G.H.A. Sajeewa Lakmal Reg. No. 324639802

9. Opportunities and Recommendations

To overcome these challenges, the following recommendations are proposed:

1. Policy Harmonization: Develop integrated policies that align renewable energy targets
with circular economy objectives. This includes harmonizing legislation, incentives,
and regulatory measures across sectors.
2. Innovative Financial Mechanisms: Establish innovative financial instruments such as
green bonds, public-private partnerships, and international funding sources to support
renewable energy projects.
3. Technology and Infrastructure Investment: Prioritize investment in advanced
technologies and infrastructure that facilitate the adoption of renewable energy and
circular economy practices.
4. Stakeholder Collaboration: Foster collaboration among government agencies, private
sector, academia, and civil society to ensure a holistic approach to policy development
and implementation.
5. Capacity Building and Education: Enhance capacity building and educational
initiatives to increase public and stakeholder awareness about the benefits and
importance of renewable energy and circular economy.

10. Conclusion

The integration of renewable energy systems into a circular economy framework in Sri Lanka
presents both challenges and opportunities. Effective policy and regulatory frameworks are
essential to drive this integration and achieve sustainable development goals. This literature
review highlights the need for comprehensive, coherent, and innovative approaches to policy-
making that can support the transition to a renewable energy-based circular economy. The
findings of this review will inform the proposed MSc research, which aims to contribute to the
development of effective policy and regulatory frameworks for renewable energy systems in
Sri Lanka.

References

1. European Commission. (2020). A new Circular Economy Action Plan. For a cleaner
and more competitive Europe.
2. Ministry of Power and Energy, Sri Lanka. (2019). National Energy Policy and
Strategies of Sri Lanka.
3. Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: The
expected transition to a balanced interplay of environmental and economic systems.
Journal of Cleaner Production, 114, 11-32.
4. Worrell, E., & Reuter, M. (2014). Handbook of Recycling: State-of-the-art for
Practitioners, Analysts, and Scientists. Elsevier.
5. Murray, A., Skene, K., & Haynes, K. (2017). The circular economy: An
interdisciplinary exploration of the concept and application in a global context. Journal
of Business Ethics, 140(3), 369-380.

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