Sri Lankan power generation company commissions second rooftop solar project
Vidullanka Group in Sri Lanka has reportedly recently commissioned its second rooftop solar project with Trendy Connections Ltd., which further upholds the company’s commitment to a greener future for Sri Lanka. This was revealed by the company in a disclosure to the stock market.
According to reports, this project is undertaken by Vidul Engineering Ltd., which is a fully owned subsidiary of Vidullanka PLC, and the plant has an installed capacity of 240kWp as well as utilizes the roof area of the Trendy Connections Ltd.’s factory premises located in Nugegoda.
The project is developed with an investment of Rs. 27 million and is expected to contribute 0.33GWh of energy to the local grid annually and the PV modules used were manufactured by JA Solar Holdings, while the inverters are sourced from Huawei Technology. This solar power project is aimed to save 225 metric tonnes of carbon through clean energy power generation annually, the Daily FT news report stated.
Vidullanka is in the process of raising additional equity funds through a rights issue of Non-voting shares in the Colombo Stock Exchange (CSE), with an objective of strengthening its presence in the solar power space. In addition to the already operating rooftop power plants at the premises of Diamond Cutters Ltd. and the Trendy Connections, Vidullanka intends to utilise the rights issue proceeds to further develop several more rooftop and ground-mounted power plants that are in pipeline, the news report has further noted.
The company has reportedly further disclosed an initiative to amalgamate Walagamba Balashakthi Ltd., a fully owned subsidiary with the Vidullanka, which is the first step toward streamlining the operations of its hydro power segment. The amalgamation is subject to shareholder approval at a general meeting.
Despite the operational challenges due to Covid-19, Vidullanka has been successful in achieving the highest annual capacity addition during the financial year 2020/21 while ensuring the safety and wellbeing of its employees along with smooth operations at the power plants. The group has also reported a Profit After Tax of Rs. 503.9 million for the first nine months of the financial year when compared to the corresponding period with Rs. 278.8 million and Rs. 362 million for the financial year 2019/20, then news report has added.
Vidullanka is a pioneering entity in the renewable energy sector in Sri Lanka for over two decades and has a total portfolio of more than 37MW, with cumulative annual energy exceeding 144GWh from hydro, biomass and solar power plants annually to the national grids of Sri Lanka and Uganda.
OSL take:
Solar power generation in Sri Lanka is on the increase as the country is increasing the capacity of Sri Lanka’s renewable energy generation. Sri Lanka is facing a looming power crisis making power generation projects, especially renewable energy generation a priority in the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s renewable energy generation sector.
| Article Code : | VBS/AT/20210421/Z-2 |