Sri Lanka’s Aitken Spence acquires Sagasolar from LOLC - Opportunity Sri Lanka
Sri Lanka’s Aitken Spence acquires Sagasolar from LOLC

Sri Lanka’s Aitken Spence acquires Sagasolar from LOLC

The Morning: Aitken Spence PLC, in a press release, have stated that they reiterate their commitment to local and global sustainable development goals by acquiring Sagasolar Power (Pvt.) Ltd., from the major shareholder LOLC Group for Rs. 1.4 billion. Moreover, they said, it is in line with Sri Lanka’s power and energy strategy to increase power generation from the renewable energy sector. This investment from Aitken Spence expands their portfolio in renewable energy in the pursuit of enabling access to clean energy and contributing positively towards rising energy demands and lowering our national carbon footprint.
The solar project contributes 10 megawatts (MW) to the national grid and is expected to generate approximately 18 million kWh annually. This is the country’s first utility-scale solar farm that extends to over 45 acres of leased land. The project was first commissioned in October 2016. The solar farm is located in Buruthakanda, Hambantota which has the highest recorded solar irradiation level in Sri Lanka.
“Amidst dire circumstances, this is yet another bold move and significant investment made by Aitken Spence, that shows our commitment to expand the sustainable power generation portfolio with renewable energy projects. Solar power has the potential to play a key role in the renewable energy segment in Sri Lanka and this initiative strengthens the country’s efforts to move towards cleaner energy sources and productive management of sustainable and affordable energy generation.” commented Aitken Spence PLC Deputy Chairman and Managing Director Dr. Parakrama Dissanayake.
“This is our first major project in solar power generation, and our stringent management frameworks will extend to the newly acquired solar energy power plant to meet all necessary compliance requirements,” added Aitken Spence Managing Director of the power segment Leel Wickremarachchi.
In addition to solar power, the company’s renewable energy portfolio includes waste to energy, hydropower, and wind power. In 2021, the company launched Sri Lanka’s first municipal solid waste to energy power plant and acquired three mini-hydropower plants.
Aitken Spence is also the first conglomerate from Sri Lanka to commit to the Science-Based Targets initiative, a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), which drives ambitious climate action in the private sector by engaging with organisations to set science-based emissions reduction targets.
The Power segment of Aitken Spence is a leading player in the industry with a reputation for investing in pioneering technologies whilst diversifying into renewable energy and towards achieving net zero.

OSL take:

The ongoing power crisis has opened up business/investment opportunities in Sri Lanka’s power industry, especially in the renewable energy generation sector. Sri Lanka has also adopted a policy if increasing the country’s renewable energy generation capacity to 70% thereby further expanding the opportunities in the sector. The local businesses engaged in renewable energy generation has shown a steady growth while also recording impressive profits. All these are indicative of the growing business potential in Sri Lanka’s power industry. Foreign businesses/investors could therefore confidently explore the opportunities in Sri Lanka’s power industry, especially in the renewable energy sector. Many foreign companies have already expressed interest in investing in the sector. Foreign businesses could also look at forming partnerships or joint ventures with local businesses engaged in the industry to further expand operations.

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Article Code : VBS/AT/25072022/X_5

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