Carmudi Monthly 009 | Page 11

The government of Sri Lanka has called bids for a 100 MW floating solar farm with energy storage capabilities. The interest in such an advanced solar farm was raised after the American automaker and energy giant Tesla made an offer to the Australian government, to build batteries for the countries demanding power grid in record time.

The SL cabinet of ministers recently gave the go ahead to call for an international tender to construct a 100 MW floating solar farm on the Maduru Oya reservoir. The newly proposed solar farm is expected to cover an area of 500 acres on the large reservoir, which span an area of 15,790 acres in the Ampara District.

The winners of the tender will have to build the new solar farm as a joint venture with Sri Lankan Mahaweli Authority and should pay a 10 percent royalty once the deal is underway.

The investors are expected to bid for the cost of the new plant and its batteries. The plant should be able to store its energy generated during the daytime, and release it to the local grid during the peak hours at night. The Ceylon Electricity Board currently operates expensive diesel power generators at a cost of over 20 rupees a unit and gas turbines at an even higher price during those night time peak hours. Under the deal, the CEB will also be expected to buy additional energy that the batteries might not be able to store during the daytime.

According to analysts in the solar power industry, the price to produce one kilowatt of solar generating capacity costs roughly around 1000 US dollars as of 2017. However, larger farms can generate energy at an even lower price margin.

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Sri Lanka Call for Bids for a Floating Solar Farm amid Tesla Challenge

Concerns Raised Over Government Tax Increase for Synthetic Lubricants

In a press conference held recently, the Ceylon Motor Traders’ Association (CMTA), which is a member of the Ceylon Chamber of Commerce, raised their concerns over the government’s decision to increase the tax and duty imposed upon imported synthetic lubricants, in a significant margin not seen before.

Commenting on this new development, the CMTA stated that the unusual increase in duty and taxes imposed by the government for synthetic lubricants has raised an alarm for the automobile industry of Sri Lanka. The new tax and duty change will force lubricant suppliers to pass on any price hike to the end customer, making it harder for vehicle owners to keep their vehicles properly maintained in the long term.

The newly revised changes, which are expected to go on effect from mid-November onwards, will see an overall increase in duty and taxes on synthetic lubricants by 31 percent.

Local franchise car agencies have also taken a hit due to the new alterations, since the companies are now forced to pass the cost increase down to their customers.

The new duty and tax hike will only result in vehicle owners being discouraged to use high quality synthetic lubricants and is not a welcome development for the Sri Lankan market. Vehicle manufacturers encourage the use of synthetic lubricants, which allow cars to perform more efficiently compared to conventional oils, helping to save money while reducing greenhouse gasses in the long term, the CMTA further stated.

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