President says 120 MW solar power plant in Sampur to commission in April
Daily FT: President Anura Kumara Dissanayake has said the 120 MW solar power plant in Sampur, Trincomalee will begin construction work in April.
Speaking at the 15th post-Budget forum organised by the Daily FT in partnership with the University of Colombo MBA Alumni Association with Standard Chartered Bank as strategic partner, he noted that reducing production costs is a key priority, with a particular focus on lowering energy expenses.
“We are commencing the construction work of a 120 MW solar power plant in Sampur by April,” he said.
Dissanayake added that the Government recently awarded a contract to a wind power plant which will generate an electricity unit at $ 4.65 per kWh — which is commendable as against $ 8.26 cents offered by India’s Adani Green Energy and agreed by the previous Government.
“We are only keen to get renewable energy at a lower cost and not rejecting foreign direct investment,” Dissanayake said in reference to cancellation of the previous contract with Adani after which the latter withdrew from the 500 MW venture with an investment of $ 1 billion.
“At present we spend about $ 13 cents to generate one unit of electricity. Our objective is to reduce that to $ 8 cents, and to do so, we need to look at renewable energy sources which can generate an electricity unit below $ 6 cents,” he added.
Separately, the Cabinet Spokesman and Minister Dr. Nalinda Jayatissa has announced that the Government has approved finalising an agreement between Sri Lanka and India to establish two solar power plants with a combined capacity of 120 megawatts in Sampur, Trincomalee.
Addressing the weekly post-Cabinet meeting media briefing, he said the initiative will be implemented in two stages — a 50 MW solar power plant in the first phase, followed by a 70 MW expansion in the second phase.
“The project will be developed on the basis of build, own, operate (BOO), as a joint venture between the Ceylon Electricity Board (CEB) and India’s National Thermal Power Corporation (NTPC),” he added.
The partnership will be managed under Trincomalee Power Company Ltd., an entity originally set up to implement a coal power project in Sampur, which was later abandoned in favour of renewable energy alternatives.
The Cabinet of Ministers approved the proposal submitted by Energy Minister Kumara Jayakody to take necessary steps to commence the first phase of the solar power project.
OSL take:
Sri Lanka’s power and energy sector has become a hotspot for business/investment opportunities in-line with the overall economic expansion in the country as it endeavors on a path to become a hub in the South Asian region. With the increasing demand for power in the country and Sri Lanka’s commitment to increase the renewable energy component in the total power mix, there’s a steady increase in the business/investment opportunities in the country’s renewable energy sector. The growth as well as profits recorded by local businesses in the renewable energy field and the increasing demand for renewable energy generated power by the public and private sectors all indicates the increasing business potential in Sri Lanka’s power sector. The interest shown by foreign businesses in the renewable energy sector further indicates the overall expansion and the business potential in the country’s renewable energy sector. Given all these developments, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka’s power sector, especially in the renewable energy sector, due to Sri Lanka’s economic expansion that has resulted in a steadily growing demand. Foreign businesses could also look at forming partnerships or joint ventures with local businesses in the renewable energy generation sector in order to further expand operations.
| Article Code : | VBS/AT/20250304/Z_3 |