Sri Lanka has cancelled
175 mini-hydro deals that were signed hurriedly before the presidential
elections and another 190 Megawatts of plants with no power buying agreements
that will be re-tendered, a minister said. "Yesterday, shortly before the
presidential elections, we decided to cancel 175 letters of intent (LOIs)
issued by the Sustainable Energy Authority," State Minister for Power
Mahindanda Aluthgamage said.
Aluthgamage
alleged it had awarded the (LOI)s to raise funds for elections. He said that
another 190MW of renewable plants for which LOIS awarded had been stuck up to
five years at the Sustainable Energy Authority because the Ceylon Electricity
Board refused to sign Power Purchase Agreements.
"The CEB
did not sign because, on competitive bidding, they were not awarded,"
Aluthgamage said. "They have been competitively tendered under the CEB
Act. We decided to cancel the 190MW and to call for competitive offers."
Sri Lanka's
state-run Ceylon Electricity Board caught in both capacity, and financial
crises as the last administration cancelled a planned 500 MW coal plant, and no
tariff hike given as the rupee collapsed as a result of liquidity injections
that pushed up all costs including coal. A tender for a diesel plant capable of
300MW LNG, which would have solved the capacity crisis, has ended in court.
OSL Take: The
development program carried out by the government of Sri Lanka covering all critical
economic sectors island wide has resulted in the expansion of
business/investment opportunities in the country. However, the most significant
number of business/investment opportunities have come forward in Sri Lanka’s
power and energy sector.
Opportunities in
the power industry include wind and solar power plants, LNG power plants,
auto-diesel power plants to dual fuel (liquid natural gas) plants,
mini-hydropower plants, domestic solar systems, wind power, electrical meters
and switches, power transmission and control systems, and power wires.
SLSEA actively
promotes alternatives for renewable energy and statistics show a steadily
growing contribution to renewable energy. Because of its unique location, Sri
Lanka has vast wind energy resources. There are presently 11 wind power plants
linked to the national grid. USAID has evaluated Sri Lanka's wind and solar
potential.
The looming
power crisis in Sri Lanka has resulted in the opening up of many
business/investment opportunities in the country’s power and energy sector. The
government of Sri Lanka is continuously exploring solutions to address the
rapidly increasing demand for electricity. The government is also focusing on
sustainable energy generation methods.
Therefore, Sri
Lanka’s power and energy sector is a hotbed for business/investment
opportunities. Foreign businesses/investors could, therefore, explore business
opportunities in Sri Lanka’s power and energy sector or also looking at forming
partnerships/joint ventures with local companies to bid for projects in the
pipeline. The government of Sri Lanka is continuously exploring solutions to
address the rapidly increasing demand for electricity.
VBS/AT/20200303/Z_TB1
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