Sri Lanka’s Aitken Spence buys Browns solar power venture for Rs.1.4 billion
Daily FT: Aitken Spence Plc has acquired 100% shareholding in Sagasolar Power Ltd., for Rs. 1.4 billion from Browns Investments Plc.
Sagasolar operates a 10MW renewable energy plant in Hambantota.
This is the second renewable energy acquisition by Spence in just over a year.
In April last year it acquired mini hydro firm Waltrim Energy Ltd., for Rs. 900 million from Sunshine Holdings PLC and Mouldex Ltd.
Waltrim operates three hydropower generation plants in Nuwara Eliya with a total capacity of 6.6 MW under separate wholly-owned subsidiaries – Waltrim Hydropower Ltd., Upper Waltrim Hydropower Ltd., and Elgin Hydropower Ltd. Aitken Spence in its FY22 Annual Report said the acquisition of Waltrim Energy in April 2021 added 6.6 MW of hydro power to the sector’s portfolio while a further 748 KW were added through roof top solar installations.
“These power plants recorded an exceptional performance during the year due to favourable weather patterns and priority access to the grid,” Aitken Spence Deputy Chairman and Managing Director Dr. Parakrama Dissanayake said.
Aitken Spence’s power sector interests include a 100 MW thermal power plant, a 3 MW wind power plant, a 2.5 MW hydro power plant and the country’s first 10 MW waste-to-energy plant.
OSL take:
Sri Lanka’s ongoing power crisis has opened up a host of business/investment opportunities in the country’s power industry, especially in the renewable energy generation sector. Sri Lanka has adopted a policy of increasing the country’s power generation capacity to 70% through renewable energy generation. Local businesses already engaged in the renewable energy generation sector have so far recorded a steady growth as well as impressive profits. This is a clear indication of the lucrative nature of the sector as well as the growing business potential in Sri Lanka’s renewable energy generation sector. Many leading foreign businesses in the renewable energy sector have already expressed interest in investing in Sri Lanka’s renewable energy sector. Foreign businesses/investors could explore the growing opportunities in the sector while also looking at the possibility of forming partnerships or joint ventures with local businesses to expand capacity and operations.
| Article Code : | VBS/AT/22072022/X_3 |