Sunshine Energy to add 7.5 MW green power to national grid

Sunshine Energy Ltd., the newest member of Sunshine Holdings PLC, further affirmed the Group’s mission to function as a sustainable commercial entity adding value to the nation’s economy.  The company commissioned its first hydro power plant in Lindula on February 2012, generating 1.62 megawatts of power, which is now added to the national grid. The construction of two more hydro power plants on the Waltrim and Elgin estates is being considered.

Sunshine Holdings has further diversified its investment portfolio by taking the company into Sri Lanka’s fast developing power and energy sector.

This, in addition to the traditional business ventures of the group in the Plantations, Health, FMCG, Packaging and Leisure sectors, has opened a new avenue for the company.

Bandula Hulangamuwa, Managing Director of Sunshine Energy, said that the power and energy sector is a lucrative and attractive area where there is a friendly ambience for the private sector to invest its money and resources.

“We saw the energy market was booming. We realised our group had the strength to make headway in it. That prompted us to venture into the power and energy sector. Our beginning was very positive and we are very optimistic about the future.”

Even though the operations of Sunshine Energy are based on hydropower at the moment, Bandula Hulangamuwa said that the company is exploring the possibility of reaching out to other alternative energy sources as well.

“Biomass and wind power are two major energy sources about which we are very much positive. They will definitely expand the scope of our operations. It is true that there is an element of risk in every new venture. Reaching out to alternative energy sources is no exception. But you need to take those risks to achieve success in the future,” he explained.

“Sri Lanka, as a country, is vastly experienced when it comes to generation of electricity using hydropower. On that front we are very strong. For instance, the presence of Sri Lankan professionals is remarkable in hydropower projects in the African region. We should be proud of that. But, on the other hand, when it comes to alternative energy sources, Sri Lanka is still maturing when compared to other countries. India, for instance, has already gone a long way along that path. They are very strong on solar and wind power but they started the journey many years ago. Sri Lanka too has already embarked on that journey, but we still have a long way to go,” he adds.

When asked about the challenges that Sunshine Energy faced during the recent past, the representative said that the drought, which prevailed in the country for several months, was a major setback.

“It took some good months away from us. June-July months are generally considered as a good period for power generation. But this year, it turned topsy-turvy.  The drought was something we never expected, particularly during this period. Generally, before starting operations in an area, we conduct a hydrology study during which we thoroughly examine the rain patterns of the area. This drought was in sharp contrast to the study,” he said, adding that the company was now in the process of recovering.

He is also of the opinion that certain areas still need to be streamlined in order to facilitate further growth of the power and energy sector.

“Funding options, I believe, need to be expanded more. Previously there were specialised loan schemes to facilitate private sector investors in this area, but such options do not exist anymore. At the same time, the regulatory process with regard to investors needs to be simplified. It is true that regulation cannot be completed overnight. But the timeframe of the regulatory process should be investor friendly. When the authorities take a long time to give the green light for a project, it could discourage investors. On the other hand, there should be mechanisms which allow the State to share its potential with the private sector. Therefore, public-private partnerships need to be developed in this area,” he asserted.

The power and energy sector, he said, is on the threshold of a new era and concepts such as the net metering system have expanded the dimensions of the sector. “In the case of Sri Lanka, a national campaign is underway to encourage the common public to save electricity. Therefore, new thinking is coming into the energy sector which is a positive sign for the future,” said the Energy sector representative of Sunshine Holdings PLC, adding that the company would enter into a public-private partnership to supply power to the nation.