Chinese firm offers to invest $ 800 m for renewable energy projects in Sri Lanka

China National Energy Engineering and Construction Company Ltd. (CNEE) has offered to invest $ 800 million in Sri Lanka for 400 MW renewable energy projects in the country.

This was revealed by the Sri Lanka Embassy in Beijing. 

Ambassador of Sri Lanka to China Dr. Palitha Kohona recently visited the massive KE Electric plant in Shijuazhuang producing a range of equipment for the generation and distribution of electricity. The equipment and knowhow for the proposed renewable energy project in Sri Lanka will be supplied by KE Electric.  

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

The Ambassador was hosted by KE Electric Chairman 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 has explained the Government policy to produce 70% of Sri Lanka’s electricity needs from renewable sources by 2030. He emphasised that the Government was looking for investors and would 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.