Sri Lankan government approves key renewable energy generation projects for implementation
The Cabinet of Ministers in Sri Lanka has reportedly granted approval for several power sector projects last week, including a 100MW solar power plant in Siyambalanduwa, purchasing two transformers from an Indonesian company and adding 60MW of wind power to the national grid.
Sri Lanka’s Cabinet Spokesman and Media Minister Keheliya Rambukwella has told reporters during an online Cabinet briefing that three Cabinet papers submitted by Sri Lanka’s Power Minister Dallas Allahaperuma and Energy Minister Udaya Gammanpila had been approved.
Central among these papers was the one for Sri Lanka’s state owned power utility, the Ceylon Electricity Board (CEB) to set up a 100MW solar power plant in Siyambalanduwa using private investment and construction of the power line from Medagama to Ampara.
“The necessary preliminary steps have been taken to implement the Siyambalanduwa solar power plant, such as studying the feasibilities and securing the lands and environmental evaluations. The assistance of the Asian Development Bank (ADB) has been received to conduct an analysis on the procedure to be followed to develop the power plant and its funding,” Rambukwella has said.
It has been proved by the analysis that the proposed project with transmission infrastructure should be implemented as a single procurement of the 100MW power plant and transmission facilities, in order to obtain a minimum power consumption charge for the generation and transmission of a unit of electricity according to the various capacity opportunities that could be implemented, the Minister has been further quoted as saying.
Competitive bids were called earlier for the contract of Providing, Fixing and Supervising of two 132/33kV, 45MWA electric transformers for the Wagawatta grid substation.
Accordingly, the proposal tabled by the Minister of Energy to award the contract to PT.CG Power Systems – Indonesia at a sum of Rs. 245.62 million (VAT excluded), as recommended by the Standing Committee on Procurement appointed by the Cabinet of Ministers, was approved by the Cabinet of Ministers.
“It has also been decided to add on an amount of 60MW wind power capacity for the electricity supply system through Trincomalee, Mannar, Bolawatte, Madampe and Kappalthure grid substations with the view to increase the usage of renewable energy sources,” the Minister has added.
OSL take:
The government of Sri Lanka has given priority to the development of renewable energy generation projects with the aim of increasing sustainable energy solutions to 70% of the country’s overall power map. Sri Lanka is facing a looming power crisis due to the growing demand creating many business/investment opportunities in the country’s power sector, especially the renewable energy sector. Priority is being given the hydro, wind and solar power generation. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s renewable energy generation sector.
| Article Code : | VBS/AT/16122020/Z_3 |