Vallibel Power Erathna’s first plant in Kuruwita signs fresh PPA deal with CEB

Vallibel Power Erathna PLC (VPEL) has entered in to a Power Purchase Agreement with Ceylon Electricity Board recently for the sale of electricity from its 9.9MW Erathna Hydro Power plant in Kuruwita and the first of the Company.

The signed agreement is valid till 20 July 2024 and has the provision for an extension of up to 14 July 2039.

The company reached the end of its first term of SPPA on 14 July 2019 and at the end of FY20 was in final stage of concluding the agreement for extension of SPPA with Ceylon Electricity Board. 

The other two mini hydro power projects, Kiriwaneliya MHPP and Denawaka Ganga MHPP, have another 6 years of their first term of SPPA, that are due to expire in 2026 and 2027 respectively.

VPEL began its operations in 2001 as ‘Zyrex Power Company Erathna Limited’ to develop and operate mini hydro power projects in Sri Lanka. 

It is one of the largest public quoted renewable energy companies in Sri Lanka and it manages and operates three mini hydro power projects at Kuruwita, Ratnapura, and Norton Bridge, namely Erathna Mini Hydro Power Project, Denawaka Ganga Mini Hydro Power Project and Kiriwaneliya Mini Hydro Power Project with a cumulative capacity of 21.75 MW. 

VPEL supplies electricity of about 80 GWh to national grid of Sri Lanka annually. The Group generated 74 GWh of power in FY2019/20 down by 7% from the previous year. Revenue was down 18% to Rs. 1 billion and after-tax profit was down 20% to Rs. 707.6 million.