Vallibel Power Erathna to develop 10 MW solar project in Matara
The Morning: Vallibel Power Erathna PLC has signed a standardised power purchase agreement (SPPA) with the Ceylon Electricity Board (CEB) for the development of a 10 MW ground-mounted solar photovoltaic (PV) project at Dolahena Estate in Matara.
The agreement, finalised on 11 September, will see Vallibel Power supplying electricity to Sri Lanka’s national grid for a period of 20 years.
The solar project is expected to attract an investment of approximately Rs. 2 billion and is anticipated to generate between 18 GWh to 20 GWh annually.
This initiative is part of Sri Lanka’s broader push towards renewable energy and aims to bolster the country’s sustainable energy production.
OSL take:
Sri Lanka’s power industry, especially the renewable energy generation sector, has become a hot spot for business/investment opportunities in the country. These opportunities are expected to see further growth due to the ongoing economic activities in the country as well as Sri Lank’s target of becoming a regional hub. Business/investment opportunities in the renewable energy generation sector has received a further boost by the Sri Lankan government’s policy of increasing the renewable energy component to 70% of Sri Lanka’s total power mix. The growing business potential in the renewable energy sector is evident by the growth and profits recorded by local businesses engaged in the sector as well as the interest shown by foreign businesses like Adani Green Energy to enter the sector. With Sri Lanka continuing to promote renewable and clean energy on its path towards becoming a regional hub, the business/investment opportunities presented by the sector presents lucrative opportunities for foreign businesses/investors.