Leading energy company and a subsidiary of Lanka Ventures, the LVL Energy Fund PLC is set to expand its alternative energy footprint with the development of seven new solar power projects. The plants will be set up in partnership with First Energy SL (Pvt) Ltd, in strategic locations across the island and will have a collective capacity of 7 MW of solar energy.
With several hydro, wind and thermal energy projects already in operation, these are the first solar power plants to be added to the company’s portfolio. The new plants are estimated to cost a total of Rs. 1.2 billion and are part of the LVL Energy Fund’s long-term strategy to diversify its energy offering and strengthen its position as a leader in the alternative energy arena.
The plants are being set up in response to a tender launched by the Ceylon Electricity Board (CEB), calling for the setting up of 90 power plants with a capacity of 1 MW each. Constituting the LVL Energy Fund’s total solar power contribution of 7 MW is the 3 MW plant which will be located in Maho, the 2 MW plant which will be situated in Pallekele as well as the Mathugama and Embilipitiya plants which will each generate 1 MW. Connected to 4 grid substations in the above locations, each power project is to be developed on a Build, Own & Operate (BOO) basis. The tenure of power purchase agreement for each plant is 20 years, and the entire implementation and set up process of the power plants is estimated to take approximately six months upon receiving all approvals.
Commenting on the LVL Energy Fund embarking on its first-ever solar power projects, Sumith Arangala – CEO, LVL Energy Fund stated: “We are on our way to setting up our first-ever solar power plants and we are very pleased to be diversifying into this highly sustainable and fully eco-friendly source of energy. Solar power is the ultimate energy resource of the future, and we are privileged to play a role in shifting Sri Lanka’s dependency from non-renewable energy resources such as fossil fuels, to renewable and more environmentally-friendly options that are less taxing on the planet.”
LVL Energy Fund PLC was incorporated in June 2006 as a subsidiary of Lanka Ventures PLC with an initial capital of Rs. 300 million. The main objective of the company was to invest in projects in the power and energy sector in Sri Lanka and across the region. Up to June 2016 the company held several rounds of fund raising which culminated in a total fund base of Rs. 2,636 million by 31st March 2017. Thereafter the company held an IPO to raise a further capital of Rs. 1,200 million and obtained a listing for shares at the Colombo Stock Exchange. The company remains a well-diversified entity with investments in renewable and thermal power projects in Sri Lanka, Bangladesh and Nepal, and is set to help usher in a new era of sustainable energy use.