Press briefing of Cabinet Decision taken on 2023-09-11

Investment Proposal for a Solar Power/Battery Storage Project at Poonakary Tank in Kilinochchi

- Cabinet approval has been granted to call for Expressions of Interest from prospective investors to develop renewable energy projects with a capacity of 50 MW or more in order to support the implementation of expeditious renewable energy development programmes in the country. Accordingly, United Solar Energy SL (Pvt.) Ltd. has submitted a proposal to develop a solar power plant of 700 MW with a battery energy storage system, at Poonkari Tank, Kilinochchi enabling to provide a power supply of 134 MW. It has been proposed to implement the proposed project with a total investment of US$ 1,727 million and as a 100% foreign direct investment, out of which US$ 500 million will be allocated to be utilized for local project components. As a part of the proposed project, the project proponent company has proposed to construct 03 barrages around the Poonkari tank at a cost of US $13.5 million to prevent the sea water intrusion and to rehabilitate the tank. Instead, the Northern Provincial Council, the Northern Provincial Irrigation Department and the Department of Agrarian Development have already agreed to provide 1,080 acres of the shallow area of the tank to the said company on a 35-year lease agreement for the installation of the 700 MW solar power plant. Accordingly, the proposal made by the Minister of Power and Energy to accept the project proposal submitted by United Solar Energy SL (Pvt.) Ltd. in principle and to appoint a Cabinet Appointed Negotiating Committee to evaluate the said proposal and submit recommendations, was approved by the Cabinet.