China to invest USD 800 million in Sri Lanka on renewable energy projects

China is to invest USD 800 million in Sri Lanka on 400 MW renewable energy projects.

The Sri Lankan Embassy in China said that China National Energy Engineering and Construction Company Limited (CNEE) has offered to invest USD 800 million on the projects in Sri Lanka.

The Ambassador of Sri Lanka to China Dr. Kohona visited the massive KE Electric plant in Shijuazhuang producing a range of equipment for the generation and distribution of electricity.

He was hosted by the Chairman of KE Electric, Chengsuo Zhang together with the Senior Management Team and was given a comprehensive tour of the establishment. Of particular interest was the equipment produced to generate and distribute electricity produced from solar.

Dr. Kohona explained the Government policy to produce 70% of Sri Lanka’s electricity needs from renewable sources by 2030. He also touched upon the locations being made available by the Government for the purpose. He emphasised that the Government was looking for investors and will not take loans to finance any projects. The CINEE, which had already done some preliminary work on potential locations together with the KE Electric, was in the process of preparing its proposals.

Subsequently, the Sri Lankan team was taken on a tour of an impressive solar installation, Hongji PV Plant Project and Solar Demonstrative Project, in Beizhuang in Pingshan County of Shijiazhuang. Barren hillsides were covered with solar panels.

KE produced control equipment, inverters, transmission lines, etc., were evident. Interestingly, 25% of the revenue generated from this project was directly allocated to village upliftment and poverty alleviation.

A nearby village, which had witnessed devastation during the war against the Japanese, was now prospering from this novel source of income.

The proposed CNEE project is expected to be on a Build-Own-Operate (BOO) or Build-Own-Operate and Transfer (BOOT) basis. (Colombo Gazette)

2 COMMENTS

  1. Hello, easily 4 times or more the cost for an ordinary PV plant. Even by the 20 to 30 kW size point, the investment required is 500 USD per kW. Disregard completely the scale economies possible for MW level. Why don’t we call for international tenders? A regular 400 MW installation should cost less than 200 M USD. With this proposed 800 M USD investment, we should be able to install a (close to) 2 GW plant. If we add Long-Term storage, the equation changes of course. Also for infra-structure required for this scale. But this proposal smacks of a 80% commission deal for facilitating. Naturally this will be worked in to the electricity price point, which Sri Lanka will purchase at may be 5 cents USD per unit; 4 to 5 times the cost Saudi Government got at the recent energy tender (1.48 USD Cents per kWH). Sri Lanka will be economically disadvantaged for the next 20 to 30 years in the energy sector. And we then dream of more Dollar inflows…we are being duped again. No surprise there!

  2. China can continue to pour money into Sri Lanka but ungrateful corrupt and foolish politicians will run to India to maintain their corruption and useless ideology based on religion, language, caste and gender.

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