CEAT goes green in Sri Lanka with 2.4 MW solar power plant at Kelaniya
Daily FT: Sri Lanka’s top tyre maker CEAT Kelani Holdings has completed an investment of Rs. 475.97 million in a High Tension (HT) metering roof-top photovoltaic panel solar power plant as part of the company’s efforts to reduce the carbon footprint of its manufacturing operations at its Kelaniya complex.
The 2.4 MW solar power plant installed by Regen Renewables Ltd. on the factory roof will produce 59.61 GWh in its operational period, offsetting about 21% of CEAT’s consumption of electricity from the national grid and contributing to an omission of 42,326 tons of CO₂ emissions, the company said.
The 295,200 square foot solar power plant became operational in December 2023 and will also reduce CEAT’s electricity bill, which currently accounts for about 13% of the company’s cost of production.
CEAT Kelani’s investment covered the cost of solar panels, inverters, walkways, a cleaning system, and the Ceylon Electricity Board (CEB) grid connection.
“As the manufacturer of nearly half of Sri Lanka’s requirements of pneumatic tyres, CEAT Kelani is a systemically-important contributor to the national economy, but our commitment goes deeper to encompass the community and the environment,” the company’s Managing Director Ravi Dadlani said. “This investment in renewable energy is just one example of our focus on sustainability.”
One of the most successful India-Sri Lanka joint ventures in the manufacturing sector, the CEAT Kelani joint venture’s investment in Sri Lanka over the past 10 years exceeds Rs. 8.5 billion.
The supplier of the solar power plant Regen Renewables represents SUNTECH – one of the world’s largest and most technologically advanced Tier-1 Solar panel manufacturers – and the inverter manufacturer Siemens-KACO in Sri Lanka. Regen has been in the rooftop solar business for more than a decade and has successfully installed and commissioned over 20 MW of facilities which is equivalent to a market share of almost 10% in the rooftop industry.
OSL take:
Sri Lanka’s power industry has become a hotspot for business/investment opportunities. These opportunities are mainly seen in the renewable energy generation sector. The policy adopted by the government of Sri Lanka to increase the country’s renewable and clean energy generation to 70% of the country’s total power mix has further expanded the business/investment opportunities in the sector. With Sri Lanka working towards becoming an emerging business destination in the South Asian region, the growing demand in the power industry would see a further growth in the coming years. Also, the growth and profits recorded by local businesses engaged in the power industry, especially in the renewable energy generation sector, have attracted the attention of many global players in the power industry to explore business/investment opportunities in the renewable energy generation sector. Given the growing business potential in Sri Lanka’s renewable energy generation sector, foreign businesses/investors could confidently explore the expanding opportunities in the country.
| Article Code : | VBS/AT/20240116/Z_4 |