Colombo, Sri Lanka – 25 September 2026 – Vidullanka PLC (CSE: VLL), a leading player in Sri Lanka’s renewable energy sector, has announced successful bid outcomes for several integrated Battery Energy Storage System (BESS) projects. This strategic development marks a significant step forward in enhancing the reliability and efficiency of the nation’s power grid, particularly in optimizing existing ground-mounted solar PV power plants.
The company, through project entities in which it holds equity interests, has submitted winning bids for BESS installations designed on a Build, Own, and Operate (BOO) basis for a 15-year operational period. These systems are intended to be integrated with existing solar facilities, addressing critical challenges related to solar power intermittency and grid stability.
Transformative Capacity and Financial Commitment
Vidullanka PLC’s successful bids encompass four distinct projects, collectively adding a substantial 18.7 MW / 93 MWh of BESS capacity to its portfolio. The detailed breakdown of these projects, including Vidullanka’s equity ownership and secured tariffs, is as follows:
- Solar Universe (Pvt) Ltd: 50% ownership, 4.9 MW / 25 MWh BESS capacity, with a secured tariff of LKR 24.88 per kWh.
- Sooryashakthi (Pvt) Ltd: 50% ownership, 4.9 MW / 25 MWh BESS capacity, with a secured tariff of LKR 25.98 per kWh.
- DPV Solar Energy (Pvt) Ltd: 50% ownership, 4.9 MW / 25 MWh BESS capacity, with a secured tariff of LKR 27.14 per kWh.
- VidulSolar (Pvt) Ltd (Madampe SPP): 100% ownership, 4.0 MW / 18 MWh BESS capacity, with a secured tariff of LKR 27.96 per kWh.
The bids submitted by these entities were competitive, falling within the winning threshold of the tendering process. The weighted average tariff across all projects stands at LKR 26.38 per kWh, reflecting a robust financial framework for these long-term ventures.
Vidullanka PLC’s estimated equity investment for the development and construction across these four projects is approximately LKR 600 Million. This commitment is planned to be funded primarily through internal cash generation from the respective solar projects’ operations, alongside progressive capital allocations and debt financing arrangements at the individual project entity levels. The final capital structure and costs remain subject to potential refinements.
Strategic Impact on Sri Lanka’s Energy Landscape
The retrofitting of battery storage to existing operational ground-mounted solar facilities is poised to deliver significant benefits. These integrated BESS solutions will:
- Optimize Solar Power Evacuation: Ensuring that generated solar energy is efficiently fed into the national grid.
- Reduce Energy Curtailment: Minimizing instances where solar power generation is limited due to grid constraints or lack of demand.
- Provide Grid Stabilization: Enhancing the overall stability and reliability of Sri Lanka’s electricity grid by providing ancillary services such as frequency regulation and voltage support over the 15-year power purchase operational window.
This initiative aligns with Sri Lanka’s broader goals of increasing renewable energy penetration and modernizing its energy infrastructure to ensure a stable and sustainable power supply for the future.
Forward Outlook and Next Steps
While the bid outcomes are highly positive, the formal securing and award of these projects are contingent upon the receipt of official Letters of Award (LOA), necessary regulatory approvals, and the execution of definitive project agreements with the relevant authorities. Vidullanka PLC has deemed this development as price-sensitive information, acknowledging its relevance to the company’s future operational expansion and financial outlook.
Further disclosures to the market will be made upon the receipt of formal Letters of Award and the execution of final project contracts, ensuring transparency and timely updates for investors and stakeholders.
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