Vidullanka to invest Rs. 1 bn to expand generation capacity | Daily News

Vidullanka to invest Rs. 1 bn to expand generation capacity

A solar project by Vidullanka.
A solar project by Vidullanka.

Vidullanka PLC will be investing approximately Rs. 1 billion to expand their generation capacity in the solar energy segment in Sri Lanka for the financial year 2021/22.

A solar project by Vidullanka.

“We will actively invest more into the solar energy sector in Sri Lanka and undertake our biggest venture to build a 10 MW plant in Vavunathivu, Batticaloa District. The total investment would be around Rs. 1.4 billion and the company has joined forces with Windforce Limited and HiEnergy Services to develop this project via a joint venture,” said CEO, Vidullanka PLC, Riyaz Sangani.

The second venture would be a 1 MW generating solar facility in Monaragala at an investment of Rs. 130 million. This project is expected to be commissioned in August 2021. The next local venture would be in Horana which we plan to commence next year to generate 2MW with an investment of around Rs. 250 million.

The Group which commenced operations from the Mini Hydro diversified to Dendro and solar two years ago and was listed on the main board of the Colombo Stock Exchange in October 2008 after being listed as the first hydropower company in 2005.

Sangani said that they have completed 10 Mini Hydro projects in Sri Lanka helping to add around 25 MW to the national grid. The Company has steadily grown, and its current capacity stands at 36.75 MW with a total energy supply of 144GWh.

Commenting on their Mini Hydro overseas operations he said that they first invested in Uganda opening their 6.5 MW plant in 2015 with an investment of USD 11.5 million. We have commissioned our second 6.5 MW plant with an investment of USD 11 mn during mid-2020 and this too was built and commissioned to the national grid of Uganda by the Sri Lankan engineers despite the COVID-19 restrictions.

“We are now focusing to extend our Mini Hydro footprint to Zambia and Malawi as we see growing opportunities in these markets. We will also move to the ‘Solar plants’ segment in these countries in the future.”


Vidullanka to float Rights Issue

Vidullanka PLC will float a Rs. 250 million Rights Issue (non-voting) as soon as they receive the shareholders’ approval at an EGM which is to be held on May 5, 2021, via video conferencing facilities.

“We have now moved aggressively towards undertaking investments in rooftop solar to the commercial and industrial sector. In return, the roof owners are offered a rental lease during the tenor of the investment. We hope to utilize the IPO proceeds towards this segment as well,” CEO, Vidullanka PLC, Riyaz Sangani said. Vidullanka has currently installed rooftop solar in two such facilities and work is in progress in a few more locations. He however rules out their engagement with ‘Home Solar’ projects due to intense competition and other reasons.