Vidullanka to invest Rs. 2 billion for 49% stake in Storex BESS venture
Daily FT: Vidullanka PLC is to invest approximately Rs. 2 billion for a 49% stake in Storex Ltd., following a restructuring of the project vehicle established to develop a portfolio of grid-scale Battery Energy Storage System (BESS) projects awarded by the Ceylon Electricity Board (CEB).
Vidullanka and WindForce PLC said they entered into a Share Sale and Purchase Agreement and a Shareholders’ Agreement on Tuesday relating to the restructuring of Storex.
Following the transaction, WindForce will hold 51% of Storex while Vidullanka will hold the remaining 49%.
The companies said the investment pertains to a portfolio of 12 BESS projects, each with a capacity of 10MW/40MWh, awarded by the CEB and being developed exclusively under Storex.
The disclosures also clarified the status of the Vavunathivu BESS project, which had earlier been awarded under a consortium arrangement between WindForce and Vidullanka.
According to the companies, the Vavunathivu project will continue to be developed separately under the consortium structure and does not form part of Storex.
WindForce had previously disclosed that 11 of the initial BESS project locations were secured directly by the company, while the Vavunathivu location was awarded through the consortium with Vidullanka. The company subsequently secured an additional standalone BESS project, increasing its total awarded portfolio to 13 locations.
The 12 locations awarded directly to WindForce are being developed under Storex.
WindForce said its equity investment in Storex now stands at Rs. 2.1 billion following the revised capital structure.
Vidullanka said Storex had already secured all necessary regulatory approvals and successfully achieved financial closure for the development of the 12 grid-scale BESS plants across Sri Lanka.
The companies described the partnership as a strategic initiative intended to strengthen project execution capabilities through collaborative engineering expertise, facilitate risk sharing, and support long-term value creation within Sri Lanka’s renewable energy sector.
BESSs are intended to support grid stability and energy management as Sri Lanka increases renewable energy integration into the national grid.
OSL take:
Sri Lanka’s evolving renewable energy sector is creating significant business/investment opportunities for foreign businesses/investors seeking long-term growth in South Asia’s emerging energy markets. The decision by Vidullanka PLC to invest approximately Rs. 2 billion for a 49% stake in Storex Ltd. highlights the growing momentum behind grid-scale BESS projects and the country’s broader energy transition strategy. As Sri Lanka expands its economic activities and positions itself as an emerging regional business destination, the demand for reliable, sustainable, and modern energy infrastructure is expected to increase significantly. This has opened new avenues for foreign investment in renewable energy generation, battery storage systems, smart grid technologies, transmission infrastructure, and energy management solutions. The push towards renewable energy is also aligned with Sri Lanka’s long-term energy security and sustainability goals, with increasing emphasis on solar, wind, hydro, and energy storage integration. Large-scale projects awarded by the CEB demonstrate the Sri Lankan government’s commitment to modernising the national grid and supporting private sector participation in the energy sector. For international businesses/investors, Sri Lanka offers strong potential due to its strategic location in the Indian Ocean, expanding industrial and commercial activity, and growing need for advanced energy solutions. The country’s renewable energy sector presents opportunities not only in project development and financing, but also in technology transfer, engineering services, equipment supply, and long-term infrastructure partnerships.
| Article Code : | VBS/AT/202605185Z_3 |