Cabinet nod for USD 1,727 mn Aussie investment to build 700MW solar power project

The Cabinet of Ministers has approved a proposed Power Purchase Agreement with the Australia-based company United Solar Group.

Power and Energy Minister Kanchana Wijesekera has said a 700MW Solar Power Project would be launched with a 1,500MW Battery Energy Storage System.

“The solar power project will be installed on the surface of the Pooneryn tank in the Killinochchi District, with a Foreign Direct Investment of USD 1,727 Million,” Wijesekera said.

Earlier this year, the Cabinet of Ministers gave the nod to call for Expressions of Interest (EOIs) from prospective investors to develop renewable energy projects with a capacity of 50MW or more in order to support the implementation of expeditious renewable energy development programs in the country.

United Solar Energy Sri Lanka (Pvt.) Ltd., the local subsidiary of United Solar Group, has submitted a proposal to develop a solar power plant of 700MW with a battery energy storage system, at Pooneryn Tank, Kilinochchi enabling to provide a power supply of 134MW.

In an earlier statement, the government said the proposed project would be implemented with a total investment of USD 1,727 million, adding that as a 100% foreign direct investment, out of which USD 500 million will be allocated for local project components.

As a part of the proposed project, the project proponent company has proposed to construct 03 barrages around the tank at a cost of USD 13.5 million to prevent the sea water intrusion and to rehabilitate the tank.