Sri Lankan government decides to purchase 100MW emergency power from private suppliers
The Cabinet of Ministers of Sri Lanka has reportedly approved a proposal by the country’s Power, Energy and Business Development Ministry for the state power utility, the Ceylon Electricity Board (CEB), to purchase 100 megawatts of emergency power from three private suppliers at prices ranging from Rs. 28.43 to Rs. 30.63 rupees per kilowatt.
Sri Lanka’s Government Information Department has said in a statement that the deals are to buy the extra power generation capacity for six months to ensure continuous power supply in the country which has suffered daily power cuts this month.
The power deals were approved by the Cabinet of Ministers on a proposal by Sri Lanka’s Minister of Power, Energy and Business Development Ravi Karunanayake.
Accordingly, the CEB is to buy 24 MW for its Pallekele Substation and 10 MW for the Galle Sub Station at 30.20 rupees per kilowatt from Aggreko International Project Ltd.
Another contract was awarded to Altaaqa Alternative Solutions Global FZE of United Arabic Emirates to supply 10 MW to Mahiyanganaya Grid Sub Station at 30.58 rupees per KW and 8 MW to Polonnaruwa Sub Station at 30.63 rupees per KW.
The third deal went to V Power Holdings Ltd of Hong Kong to supply 24 MW to Hambantota Grid Sub Station at 28.43 rupees per KW and 24 MW to Horana Grid Sub Station at 28.70 rupees per 1 KW.
OSL take:
The power crisis faced by Sri Lanka has pushed the Sri Lankan government to explore short, medium and long term solutions to the crisis. Foreign companies engaged in the power sector could explore business/investment opportunities in Sri Lanka’s power sector.
| Article Code : | VBS/AT/11042019/Z_3 |