COLOMBO (EconomyNext) – Sri Lanka’s Hayleys group has said it plans to invest 800 million rupees in a new hydro project which will be commissioned in next year with renewable energy seen as a key future growth area.
The group supplies close to two of the country’s total renewable energy supply, with an installed capacity of 35 MW generated through various joint ventures in hydro and wind power plants.
Renewable power generation provides 5 MW of hydro power and 30 MW of wind power to the national grid and contributes about 30 percent of Hayleys group power and energy business sector revenue and 82 percent of profit, its annual report has revealed.
“A further 800 million rupees is being invested in a new hydro project which will be commissioned in the next financial year bringing the hydro power supply to a total of 10MW.”
A 4.3 MW hydro power plant is under construction in Mawanana in Galle and is expected to be commissioned in 2016.
The power and energy business is an area “with high potential growth,” the company told shareholders, noting that: “Hayleys is a growing player in the renewable energy sector supplying Sri Lanka’s renewable energy needs through hydro and wind power plants.”
Renewable energy generation supported the performance of the sector with a profit before tax of 824 million rupees in the financial year ended March 31, 2015.
The group commissioned another 20MW wind project last year in the north with joint venture partners which will add to the sector’s profit in the coming years, the report said.
The group invested 525 million rupees in the two new wind power projects in Palai, Elephant Pass.