Sri Lankan government decides to purchase 400MW emergency powers
The Cabinet of Ministers in Sri Lanka has reportedly granted approval to purchase 400 MegaWatts of emergency power for up to nine months as part of a solution to address the existing power crisis.
Sri Lanka is currently facing a power crisis due to delays in building planned power plants.
Sri Lanka’s Government Information Department has said 200MW of floating power will be bought at Rs. 26.20 a unit for six months from June 2019 from a floating plant off Kerawalapitiya.
Another 200 MW will be bought for nine months from September 2019.
According to reports, there had been concern about procuring large volumes of emergency power without competitive bidding from Turkey based floating power supplier and that the plants may be locked in for up to three years.
Sri Lanka’s laws however enable the Cabinet of Minister to approve emergency power without competitive tender.
OSL take:
Sri Lanka is currently facing a power crisis and is in the process of formulating short to long term solutions for the problem. As a short term measure, the government of Sri Lanka is looking at emergency power purchases while looking at renewable energy solutions to address the crisis in the long term. Foreign businesses could explore business/investment opportunities in Sri Lanka’s power and energy sector.
| Article Code : | VBS/AT/24052019/Z_1 |