Sri Lanka’s Vidullanka to develop 10MW solar power plant in Batticaloa
The Morning: Vidullanka PLC has officially announced the signing of a Power Purchase Agreement (PPA) for the development of a 10MW solar power plant in Vavunathivu II, Batticaloa. The agreement was signed on 31 May, through Suryashakthi (Pvt.) Limited, a wholly-owned subsidiary of Solar Universe (Pvt.) Limited.
Solar Universe (Pvt.) Limited is a joint venture between Vidullanka PLC, WindForce PLC, and HiEnergy Services (Pvt.) Ltd, marking a collaboration in the renewable energy sector. The Vavunathivu II Solar Power Project is expected to attract a total investment of approximately Rs. 2.2 billion.
On Monday (10), Vidullanka announced that it had entered into an agreement with a consortium of promoters led by SJL Tech International (Pvt.) Limited to jointly develop a 4.9MW solar power plant in Beliatha, Hambantota.
The Beliatha Solar Power Plant project is expected to cost approximately Rs. 1 billion. Vidullanka PLC will hold a majority stake of 50.1 percent in the project company, Beliatha Solar Project (Pvt.) Ltd.
OSL take:
Sri Lanka’s renewable energy generation sector has become a hotspot for business/investment opportunities amidst the ongoing economic expansion in the country. This expansion is due to the increasing demand for power in-line with Sri Lanka’s path to becoming a regional hub and the Sri Lankan government’s policy to increase the country’s renewable energy generation capacity to 70% in the country. The growth, expansion and profits recorded by local businesses engaged in the renewable energy generation sector is indicative of the lucrative nature of the opportunities in the sector. The growth and business potential in the renewable energy sector is also known by foreign businesses/investors given the interest shown so far in Sri Lanka’s power industry by large scale foreign businesses. All these create an environment for foreign businesses/investors to explore the expanding business/investment opportunities in Sri Lanka’s renewable energy generation sector in direct and indirect segments. Foreign businesses could also look at forming collaborations with local businesses engaged in the renewable energy generation sector with the aim of further expansion.