With this acquisition Panasian will commence construction of two mini hydropower plants (MHP) in the Nuwara Eliya district in early 2018 with an estimated investment of Rs.400 million.
Upon completion, these MHPs are expected to yield a combined output of 7.53 GWh per annum.
“This latest acquisition is in keeping with our long term goal of increasing our renewable energy footprint to meet the local demand for clean, low cost energy.
Furthermore, our decade long experience in the mini hydropower sector makes us ideally suited to ensure that the project runs efficiently with the highest energy output,” said Pathmanatha Podiwala, General Manager of Panasian Power.
“Renewable energy projects like this will help propel Sri Lanka towards a sustainable energy future that will yield benefits throughout our economy and increase the quality of life.”
He went on to add that due to the convenient accessibility, short length of structures and minimal environmental impact, construction of the project is not expected to exceed 12 months.
The Lower Kotmale Oya Power Two(Pvt) Ltd was formed as a special purpose vehicle company to develop two cascade projects, the Lower Kotmale Oya II MHP and Medakumbura MHP, utilizing water resources from Kotmale Oya in the Pundaluoya township, Nuwara Eliya district.
Panasian Power, which was incorporated in 1982, owns and operates mini hydropower plants and supplies electricity directly to the Ceylon Electricity Board in accordance with the Small Power Purchase Agreement (SPPA) entered into on 5th July 2004 and spans for 15 years with a further extension of 5 years.