Carrying out urgent reforms in the energy sector and implementing them is crucial to achieve the target of 70 percent of energy from renewable energy sources by 2030, said Resus Energy Managing Director Kishan Nanayakkara.
“Sri Lanka has ample natural resources and blessed with sun, water and forestry which could easily help the country achieve the target of meeting 70 percent of the energy requirement of the country from renewable sources by 2030,” Nanayakkara told the media at a gathering to launch Resus Green Bonds, the first by an energy company in Sri Lanka. He said the energy sector needs more investors for which there has to be a conducive environment that will encourage investors to park their money.
“No one will want to take unwanted risks if the returns are not forthcoming. The business conditions must be favourable,” Nanayakkara said.
Energy experts also urged the authorities to implement the Sri Lanka Electricity Act of 2024 which focuses on reforming the electricity sector, setting up the national Electricity Advisory Council and designating the public Utilities Commission of Sri Lanka as the regulator.
The Act aims to promote renewable energy integration, ensure consumer protection, and enhance the sustainability of the electricity sector.
“The upgrading and modernising the national grid to overcome supply demand issues arising from solar power sector and having an energy efficient policies are crucial to ensure a vibrant energy sector,” Nanayakkara said.
The company aims at raising Rs. 1 billion to accelerate the nation’s transition to clean energy. The issue opened on June 25th is also the country’s first green bond issue by a non banking and finance entity.
The issue generated substantial market interest with 100% of the proceeds dedicated to renewable energy projects positioning Sri Lanka at the forefront of sustainable finance in the region.
NDB Investment Bank acted as the managers to the green bond issue for Resus Energy which hopes to use 55% of the funds raised from the issue for financing 8MW of clean solar capacity to the country’s energy grid, generating an estimated 15MW of renewable energy annually and avoiding nearly 10,000 tonnes of Co2 emission per year contributing to the country’s climate commitments and sustainable development objectives.
The projects will be 100% owned by the company and will be connected to the national grid via Ampara and Pallekele substations.
The company is expanding its footprint internationally with its first potential project reaching an advanced stage in the approval process in East Africa.
