Chinese funding pours into Sri Lankan hydropower projects
CCTV.com reported that the beautiful island nation, Sri Lanka stands right off the southeastern tip of India. The country is located in the middle of busy shipping routes in the Indian Ocean.
Accordingly, Sri Lanka's government in Colombo has given the green light in recent years for major infrastructure development to establish the country as a manufacturing and trading hub. Support for large-scale infrastructure projects can also lead many Sri Lankans out of poverty.
Yet, Sri Lanka continues to lack a reliable electric grid, while the country remains dependent on oil imports. Rapid economic growth means rising energy demand, but power outages occur frequently here.
However, Sri Lanka has a tropical climate with plenty of water resources, which create favorable prospects for a strong hydropower sector.
Chinese investors, banks and companies are looking to engage in more eco-friendly energy projects from all over the world, which include financing hydropower projects in Sri Lanka.
Earlier this month, the Industrial and Commercial Bank of China announced that the bank would grant a USD 82 million loan to construct a hydropower project in Kithulgala, 90 miles northeast of Colombo, which is expected to add 35 MW for the national grid, according to News.LK Website.
Project developers plan to build a dam 24-meters high and 113 meters long across the Kelani River; along with a tunnel, 3.5-km long, that would connect a hydropower plant to be established in Yatiyanthota. Sri Lanka's Ministry of Power and Energy played a leading role to jumpstart the project.
Yes, water appears plentiful in Sri Lanka, but prolonged droughts could dampen the reliability of hydropower. Hence, China-based solar energy company, Hanergy Group, held a forum last September in Colombo to address: Integrating solar and hydropower sources for the country.
Ms Helen Zhang, VP of Hanergy Group China, pointed to a scientific study showing that Sri Lanka on average gets 5-5.9 hours of sunshine, daily, as compared to 2.2 hrs/d for Germany.
Additionally, Colombo has set an ambitious nationwide target of 20% power generation from renewables by 2020 and 100% electrification of households by the end of 2015.
Ms Zhang said that "Conventional energy sources such as oil, coal, peat and uranium are depleting rapidly in the world. The world is now focusing on harnessing, renewable energy sources such as wind, solar, tidal wave, biomass and hydropower generation, which is cheap and environment-friendly."
Source : CCTV.com