Sojitz Corporation has acquired 90% equity interest in AES Kelanitissa Private Limited from The AES Corporation.
AES Kelanitissa owns and operates a 163 megawatt combined-cycle power plant located in Wellanpitiya, Colombo District. The projec, which started commercial operations in 2003, is also owned by Hayleys Plc and sells its electricity to Ceylon Electricity Board.
Sri Lanka’s stable economic growth has led experts to predict a roughly 6% annual increase in electricity demand. However, about 35% of the country’s current 3,932 megawatt generating capacity comes from hydroelectric power, making blackouts a common problem during the dry season.
Thermal power generation can provide both stability to the power grid and a flexible backup when fluctuations in supply occur, which has led many to call for the further spread of thermal power within Sri Lanka. This acquisition will contribute to the stable supply of electricity in Sri Lanka, covering roughly 7% (2,000 megawatts) of peak demand for the country’s population of nearly 21 million people.