Sri Lanka to build small solar plant with Japanese aid

Dec 03, 2009 (LBO) - The Japanese government will give Sri Lanka a grant of 860 million yen or just over a billion rupees to build a 400 kiloWatt demonstration solar power plant which will be connected to the national grid.



The solar project will be implemented by the Sri Lanka Sustainable Energy Authority under the Ministry of Power and Energy.

Renewable energy, other than large hydro is usually more expensive than coal.

Investment Promotion Minister Anura Yapa told a news conference the island's Cabinet of ministers had approved the project aimed at introducing clean energy.

The plant will be in the Baruthandanda area in Hambantota in southern Sri Lanka.

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The plant will help to demonstrate to developers, lending agencies and equity investors the sustainability of commercial scale solar power generation, a government statement said.

"Development of renewable energy sources using solar power is vital due to the fact that only hydro power sources are used as renewable energy sources at present," it said.