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Colombo — Two American companies are looking to invest in Sri Lanka’s energy sector as the island nation moves toward a renewable energy supply by 2023.
New Fortress and General Electric, via the U.S. Embassy, submitted an unsolicited proposal before the general election in August for a liquefied natural gas venture to generate emergency power. The proposal does not specify what sort of LNG project the companies propose, but it would be a build-own-and-operate model with 100 percent direct foreign investment. It would offer power at INR 18.29 ($0.099) per kilowatt hour for five years.
The companies also proposed to convert a 300-megawatt coal-based power plant to liquefied natural gas, with a five-year power purchase agreement.
“The treasury and the minister of finance, who is also the prime minister, responded positively to the proposals but said it required more details on it,” Cabinet spokesperson Keheliya Rambukwella told Zenger News.
Once the additional information is presented, committees will review it and make recommendations to the Cabinet to authorize the Ceylon Electricity Board and the Treasury to sign the proposal.
The call for energy alternatives heightened after the nationwide blackout on Aug. 17. The electricity grid at the Chinese-built oil-fired power plant in Kerewalapitiya — one of …
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