Vidullanka announces joint development of Beliatta solar power plant
The Morning: Vidullanka PLC has 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 Beliatta in Hambantota. This announcement was disclosed to the Colombo Stock Exchange in a disclosure recently (10 June).
The Beliatta Solar Power Plant project is expected to cost approximately Rs. 1 billion. Vidullanka PLC will hold a majority stake of 50.1% in the project company, Beliatta Solar Project (Pvt) Ltd.
Vidullanka PLC stated that a detailed announcement will be made following the commissioning of the project. The company also noted that the delay in notifying the Colombo Stock Exchange was due to finalizing the necessary documentation.
OSL take:
Sri Lanka’s ongoing economic expansion work has resulted in the growth in demand in the country’s power and energy sector. In relation to the power industry, the expansion in opportunities is mostly witnessed in the renewable energy generation sector. The increasing demand and the Sri Lankan government’s policy of increasing the renewable energy generation component into 70% of the total power mix have all resulted in the increasing business/investment opportunities in the renewable energy sector. The growth and profits recorded by local businesses engaged in renewable energy generation are indicative of the lucrative nature of the business. However, the growing business potential in Sri Lanka’s renewable energy generation sector has also attracted many international companies including India’s Adani Green Energy who have already entered the local industry with large scale investments. With the expansion in Sri Lanka’s overall economic activities, foreign businesses/investors could explore the growing opportunities in the renewable energy generation sector. Foreign businesses could also look at forming collaborations with local businesses engaged in the renewable energy sector in order to fully explore the opportunities in the sector.