Monday, December 2, 2019

Laugfs adds two 10MW floating Solar Power Plants to the Sri Lankan Renewable Energy grid


The Laugfs Gas group from Sri Lanka has sought permission to set up two floating solar power plants through its energy subsidiary as it seeks to expand and diversify its generation capacity. Laugfs Power Limited (LPL), to be listed on the Colombo stock exchange, has a long-term strategy to achieve a total capacity of 50 MW solar, 20 MW wind and 10 MW mini-hydro.

Laugfs Power Limited is to register on the ‘Diri Savi’ or second board of the Colombo Stock Exchange. Listing 335 million ordinary voting shares and 52 million non-voting shares is the aim. The move is part of the efforts of Laugfs Gas Ltd. Group to focus on their core business - liquefied petroleum gas (LPG) - by spinning off non-core units including leisure and auto emission testing.
The government has received a proposal submission from Laugfs Power to obtain the necessary approvals to set up two floating power projects of 10 MW each, according to the listing documents filed with the stock exchange.
The government is considering the proposals at a preliminary stage, it said. LPL is also exploring the possibility of investing in overseas projects in the renewable industry, particularly in Bangladesh and in African countries.

OSL Take: The decision taken by the Sri Lankan company, Laugfs Gas Group, to expand its operations in solar power generation shows the capacity and opportunities for businesses to develop and thrive within the country’s economy.
Also, the Company’s move to further invest and expand its solar power generation capacity indicates the opportunities for projects and investments in Sri Lanka’s renewable energy sector. With Sri Lanka expected to face a power crisis in 2020, the government is engaged in promoting renewable energy options to address the matter.
The growth shown by Laugfs sets an example of the possibility of expansion for other similar business entities. It is also an encouraging sign for foreign businesses/investors looking at partnering with local companies.
VBS/AT/02122019/Z_TB3

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