Windforce to invest Rs.2.7bn in 10MW solar power plant in Kebithigollewa

Decides not to pursue Tororo PV Solar Power plant project in Uganda due to drop in IRR

Renewable energy producer Windforce PLC yesterday said it would invest Rs.2.7 billion to acquire and develop a 10 MW solar power plant in Kebithigollewa in the Anuradhapura District.

To this end, the company said it would acquire 92 percent equity stake in Kebithigollewa Solar Power (Private) Limited.

Windforce said it would be utilising Rs.427.3 million of IPO proceeds for the acquisition, and the balance will come from the retained earnings of the company. 

As at March 31, 2023, the retained earnings of the company stood at Rs.3.9 billion.

Meanwhile, Windforce said it would not pursue the Tororo PV Solar Power plant project in Uganda, which was announced to the Colombo Stock Exchange in June last year due to the drop in the internal rate of return (IRR) to 12 percent as a result of increase in global raw material prices.

The company said the new Kebithigollewa project shows more lucrative prospects in returns with an IRR of 15 percent.

Windforce said the shareholder ratification for the deviations pertaining to the IPO fund utilisation will be obtained at the next General Meeting of the company.