Blue chips eye more hydro, wind power plants

Many blue chip companies in Sri Lanka are planning to expand in the country’s power sector to reap benefits.

The power segment of the Aitken Spence PLC plans to commence two renewable energy projects in the near future.

These new power projects will be a 2.5 megawatt hydropower plant in Matale and a 3 megawatt wind power plant in Ambewela.

The company’s power segment performed well in 2010 and 11, although heavy periods of rain led to the curtailment of generation at all three plants in Horana, Matara and Embilipitiya.

The two power purchase agreements for the plants in Matara and Horana are due to terminate in March and December 2012, and it is hoped that the terms of these contracts can be extended by offering the government an attractive tariff from these two plants, Deputy Chairman and Managing Director J.M.S Brito said in their annual report.

Hemas CEO Husein Esufally in the company’s annual report said their latest mini Hydro project, Magal Ganga which is currently under construction expects to commence operations this September. It will add a capacity of 2.4 megawatt. “We will pursue more renewable energy opportunities in line with the government’s target of generating 15 percent of the national energy supply through non-conventional renewable energy source by 2015,” he said.

“We will also look to diversify our investments outside Sri Lanka by focusing our competencies on profitable offshore opportunities,” he added.

Hayleys Chairman A.M. Pandithage said their investment in Nirmalapura Wind Power, a subsidiary company which is pursuing electricity generation from wind power, is a promising prospect. (AS)