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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