The Cabinet of Ministers in Sri Lanka have given their approval for 150 MW solar power capacity to be awarded to selected bidders. This means the Ceylon Electricity Board (CEB) is now free to go ahead and award contracts to the winners for procurements 'to which appeals had not been arisen against the recommendations of the negotiating committee appointed by the Cabinet of Ministers by inviting international competitive bids under 05 packages'.
CEB had launched an international tender back in March 2020 seeking bidders for 150 MW AC solar power capacity to be set up across the country on build-own-operate basis, capping tariffs at LKR 15.60 per kWh (see 150 MW Solar PV Tender Launched In Sri Lanka).
The government has now approved a proposal submitted by the Electricity Ministry to award relevant procurement contracts to selected bidders for the grid sub-stations of Anuradhapura, Habarana, Matara, Galle, Deniyaya, Kosgama, Mathugama, Pannala, Mahawa and Kurunegala. Winners will supply clean power to the grids here for 20 years post commissioning.
Last week, The Sunday Times carried a report stating that India has lodged a strong protest with its neighbor regarding a contract for 3 renewable energy projects the Sri Lankan government has awarded to a Chinese company Sinosar-Etechwin to be established as a joint venture with the CEB under the Supporting Electricity Supply Reliability Improvement Project. The report identified Etechwin as a subsidiary of Chinese wind turbine maker Goldwind.
The projects are to be located in outlying islands off the Jaffna peninsula namely Delft, Analativu and Nainativu. These islands separated by the Palk Strait from India are in close proximity to the Indian coast, hence India sees this as leading to security concerns, according to the report. Sri Lanka said it would look into the complaint.
Having waged a battle in 1962, India and China have since June 2020 been involved in armed conflicts at their borders that has raised tensions between the neighbors.