Indian Company Signs MoU to Set up Hybrid Power Project in Sri Lanka
NEW DELHI, Mar 1: An Indian company on Friday signed a contract with the Sri Lankan government for implementing a hybrid power project in three islands off Jaffna peninsula with a $11-million grant.
This has come three years after India objected to a Chinese energy project in northern Sri Lanka, barely 50 km off Tamil Nadu’s coast, and had offered to implement the same project with a grant instead of loan and managed to stall China. Sri Lanka Sustainable Energy Authority, the Government of Sri Lanka, and Indian company U-Solar Clean Energy Solutions signed the contract for building “Hybrid Renewable Energy Systems” in Delft or Neduntheevu, Nainativu and Analaitivu islands off Jaffna peninsula in the island’s north.
“The project, which is aimed at addressing energy needs of the people of the three islands, is being executed through grant assistance from Government of India. The hybrid project combines various forms of energy including both solar and wind, towards optimising capacities,” a press release from the Indian High Commission in Colombo said.
In a post on social media platform ‘X’ thanking the Government of India, Sri Lanka’s Power and Energy Minister Kanchana Wijesekara said: “The project with 530 kw Wind power, 1,700 kw Solar power, 2,400 kwh Battery power and 2,500 kw of stand by diesel power system will be constructed at the 3 Islands by U-SOLAR.” The Bengaluru-based company was chosen through a competitive bidding process conducted by the Sri Lankan government for Indian firms, officials said.
The initiative is the third India-backed energy project coming up in Sri Lanka’s north and east. The National Thermal Power Corporation is spearheading a solar venture in the eastern Sampur town, while the Adani Group is setting up renewable energy projects in Mannar and Pooneryn in the north.
The Sri Lankan Cabinet first cleared Sinosoar-Etechwin Joint Venture in China, to execute renewable energy projects in the three islands. The company was chosen through a competitive bid backed by the Asian Development Bank. Concerned by the prospect of a Chinese project very close to India’s southern coastline, India had offered to implement the same project with a grant instead of a loan and Sri Lanka took it up.
A Memorandum of Understanding was signed in March, 2022, during External Affairs Minister S. Jaishankar’s visit to Sri Lanka. China’s displeasure at the turn of events is no secret. The Chinese Ambassador in Colombo voiced rare criticism of Sri Lankan authorities for suspending the original projects for “unknown reasons” and sending out the “wrong message” to potential investors.
However, the Sino Soar Hybrid Technology, which was to implement the project in Sri Lanka but was cancelled in December 2021, signed a deal for implementing a similar project in the Maldives.
(Manas Dasgupta)
