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Wednesday, 28 January 2015 00:00 - - {{hitsCtrl.values.hits}}
Joule Power wind power plant in Puloppalai
Establishment of the two wind power projects is expected to support the economic development in the northern region; where industrial activity has been thwarted due to the lack of connection from the national power grid during the conflict.
Commenting on the bank’s involvement, NDB Chief Executive Officer Rajendra Theagarajah said: “Both these projects are of national importance and will give the opportunity for NDB to contribute to the infrastructure development of the country. With the Sri Lankan economy growing steadily along with revived economic activities, the demand for energy has increased significantly. A reliable source of power is a necessity to re-energise economic activities in north and east. Therefore, we see this pioneering effort as both vital and timely for the nation’s economic growth agenda. As a bank dedicated for national development, we are pleased to be able to contribute towards this national endeavour.”
Commenting on the two projects, Joule Power and Beta Power Chief Executive Officer Manjula Perera said: “These two new projects will add approximately 60 GWh green energy annually to the national grid and also will electrify approximately 100,000 houses while supporting the much needed economic development in the northern region.”
Beta Power wind power plant in Vallimunai
Sri Lanka’s energy demand
Sri Lanka’s energy demand grows at approximately 8% annually. Sri Lanka traditionally has been dependent on hydro power for energy; however in the last decade this has shifted to thermal power generation. 
Sri Lanka is now emphasising the need to pursue wind power as an alternative energy source. This is principally because of the high dependence on thermal energy and the volatile fossil fuel prices which has resulted in unstable electricity prices and low energy security in meeting country’s electricity demand.
Global awareness is also building on the negative impact on climate change brought about by the fossil fuels. Further, most of the commercially viable major hydro projects have already been exploited with the remaining few large hydro projects, presently being prepared for implementation. Hence diversified renewable energy is a necessity to compensate the growing power requirement in the country. In order to fulfil this need, Sri Lanka is actively promoting non-traditional renewable energy sources such as wind energy, bio mass, solar power, etc.
NDB plays significant role
NDB in its development banking operations has played a significant role by financing several mini hydro power projects and wind power projects, under several dedicated credit lines. With over three decades of project financing experience and in-house legal expertise available, NDB not only plays a role of financial partner in these projects, but acts as a project partner where advice on project management and legal aspects are also made available to the promoters.
The package of services offered by NDB not only ensures the successful implementation of the project but also ascertains satisfactory returns to both the promoters as well as the Bank thus creating a win-win solution for both parties.
NDB with its history of successful engagement in the non-conventional renewable energy sector as a financial services provider since the late ’90s is now gearing itself towards much greater involvement in the sector. NDB was one of the proud financial partners to the nation’s first-ever wind power project, thus playing a pioneering role in assisting the development of alternative sources of energy in the country. Later, the bank approved facilities aggregating to approximately Rs. 2 b for the purpose of financing wind power projects in Kalpitiya with an estimated installed capacity of 45MW.
Going beyond traditional boundaries of providing straight forward long term finance for the energy sector projects, NDB now envisages utilising its competencies gained over years to add value to the sector in a novel way; by offering knowledge based services required by the Sri Lankan project promoters.
NDB is one of the fastest growing banks in the country with NDB Group having regional operations in Bangladesh. The Bank offers a wide range of commercial banking services through its growing island-wide branch network, catering to an increasing customer base from all walks of life. Through the combined synergies of the diverse constituents of the NDB Group, its customers have access to a full range of banking and financial services; including project finance, corporate banking, SME lending, retail banking, investment banking, stock brokering, wealth management and insurance solutions making NDB a truly Universal Bank.
