Several renewable energy companies in Sri Lanka to add 10MW solar energy to national grid
WindForce Limited of Sri Lanka, which is one of the latest companies to list on the Colombo Stock Exchange (CSE), has reportedly acquired Solar Universe (Pvt) Ltd, which has won a tender to develop a 10MW solar power plant in Vavunathivu.
Solar Universe is owned in conjunction with Vidullanka PLC and HiEnergy Services (Pvt) Ltd, where each of the three shareholders own an equal stake of 33.33%, according to local news reports.
This latest project will add 10MW Solar PV to the national grid, contributing to 19.70 GWh of power annually, equivalent to 4.9 million liters of oil saved, the Daily News has reported.
The estimated cost for the project is Rs 1.4 billion and is to be funded equally between the three shareholders.
WindForce had recently launched its first IPO in March and was oversubscribed almost immediately, receiving applications worth 26.7 billion Rs, 7.9 times the offering.
The largest IPO on the Colombo Stock Exchange since 2011, WindForce has reserved part of the proceeds for new projects and will use a portion for this project and is the only energy company in Sri Lanka to have received an AA- (stable) issuer rating by ICRA, which is the highest rating given to a corporate in Sri Lanka at the time of the issuance, the news report has further stated.
WindForce, alongside HiEnergy and Vidullanka, is expected to use its engineering expertise to design and manage the new power plant, which it hopes to commence construction in the third quarter (3Q) of 2021.
Sri Lanka’s largest producer of renewable energy, WindForce currently owns and operates 27 power plants both locally and internationally and with the addition of Solar Universe in the portfolio, WindForce’s current installed capacity will increase to 228 MW.
Business/investment opportunities in Sri Lanka’s renewable energy generation sector continue to expand due to the looming power crisis mainly due to the increase in demand. Sri Lanka’s build up as a business hub in the South Asian region given its geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country have expanded business/investment opportunities in the country’s power sector, especially the renewable energy generation sector.
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