M. J. M. N. Marikkar, Chief Executive Officer, Lakdhanavi Ltd, Manjula Perera, Managing Director, WindForce, Lasith Wimalasena, Chief Executive Officer, WindForce PLC, Co Founder the Blue Circle Pte Ltd, Oliver Duguet in Colombo. Picture by Wimal Karunatillike
The increase of electricity tariff though may have an impact on consumers, it paved the way to clear the backlogs of payments running to several billions due to the renewable energy (RE) sector operations.
Due to this backlog of payments due to RE sector by Ceylon Electricity Board for over six years which ran to over Rs. 20 billion, providers were faced with huge financial issues and it also deprived new entrepreneurs investing in this segment, said M. J. M. N. Marikkar, Chief Executive Officer, Lakdhanavi Ltd.
However due to the electricity tariff revision the CEB got more revenue and from this revenue they have started repaying the RE sector operations and this is a very positive trend which will encourage more to invest in this sector. He said that the current supply of RE to the local power grid is around 13% and this payment initiative by CEB will help to double the production in three years. He also said it was also a step in the right direction by the government to join with India in several energy projects which will result in Sri Lanka selling Electricity to India in the future.
He also said that Lakdhanavi Ltd has for the first time combined with WindForce PLC, and Blue Circle Pte Ltd, to build Sri Lanka’s largest private-sector renewable energy project, a 100MW solar power plant with a transmission facility to be set up in Siyambalanduwa, Monaragala District.
Managing Director, WindForce said the three parties will invest Rs 152 million, for this landmark venture represents a significant milestone in the country’s transition towards clean energy. Scheduled for completion before the end of 2025, the project will not only enhance WindForce’s installed capacity by nearly 30% but also showcase the expertise and commitment of all consortium partners involved.
CEO, Co Founder Blue Circle Pte Ltd, a renewable energy company based in Singapore, Oliver Duguet said that the payment delays are a somewhat common scenario in the emerging markets and this has happened to them in Vietnam as well.
“However we see investments in the RE sector to be very productive as we are guaranteed a free supply of natural energy and a buy back price. If our investment was in coal, the global coal prices fluctuations would have been difficult to predict, unlike in the RE sector where natural energy is guaranteed right throughout the year.
He also said that it was good to see the government’s commitment towards moving towards a greener nation and this shift in the long run will also help to reduce the electricity tariffs in the future.
Shirajiv Sirimane