Malaysian owned Panasian Power makes its mark in local Mini Hydro Power Development

Panasian Power Limited (PPL), a fully owned subsidiary of Power Hub International, Malaysia, is helping to meet the demand for clean, low-cost energy in Sri Lanka through its mini-hydropower plant in the Ratnapura District.

Since incorporation as a Board of Investment registered company in 2002, PPL has been part of the drive to develop the small and mini-hydropower industry in Sri Lanka, owning and operating a 2.0 Megawatt mini-hydropower plant in the Rathnapura District which provides electrical energy exclusively to the Ceylon Electricity Board (CEB).

The “Plant Factor” or the overall efficiency of the plant is a record high 60 %.

The company is also in the process of negotiating the acquisition of a second 2.4 Megawatt mini hydro power project in Nuwara Eliya.

The power generation policy of the mid-1990’s encouraged private sector participation, leading to Independent Power Producers (IPPs) such as Panasian Power Limited to supplement local power generation through the establishment of small and mini-hydro plants. These ‘run-of-the-river’ grid-connected small and mini-hydro plants are some of the most environmentally friendly energy sources available to Sri Lanka. Since no water is stored in a reservoir and the water is fed back to the same stream a short time after its diversion and generation of power, there is negligible impact on the environment.

Chairman of the PPL Board of Directors, Dr. Prathap Ramanujam said, “Hydroelectricity as a clean, domestic and renewable source of energy offers immense benefits to Sri Lanka. It has advantages over other energy sources, particularly in terms of efficiency and its limited impact on the environment. Panasian Power is committed to harnessing this natural resource to enable an energy-secure future for the Sri Lankan people.”

In 1992, as the Director General of the Secretariat for Infrastructure Development and Investment, Dr. Ramanujam initiated the first Mini-hydro power project and the first private thermal power project in Sri Lanka.

Hydroelectricity is also a nonpolluting source of electricity as there are no emissions released by the burning of fuels. Therefore, the PPL mini-hydropower generation project qualifies for the emission credits offered via the Kyoto Protocol which aims to lower global greenhouse gas emissions. The emission credits are available to countries and projects that limit or avoid the emission of greenhouse gases and can be sold in the open market to countries below the specified emission targets. This financial incentive is a substantial opportunity to further realize the income and value of PPL’s hydroelectricity project.

Power Hub International is a subsidiary of Malaysia’s Majulia Group. Established in 1985, and in line with its corporate mission to participate actively and effectively in the local and in the international business particularly the construction industry, Majulia, as a new organization, stepped ahead to register itself as a Class A Contractor in 1995.

Since its inception, Majullia has completed both large and small projects from small sites developments to massive government and private sector projects. Under the Malaysian Government’s Small Renewable Energy Programme, the company was the first to undertake the development of a mini-hydro plant in Malaysia, while venturing into other power generation projects to expand its stake in the renewable energy industry. This same expertise is at the forefront of efforts by Panasian Power to develop the use of renewable energy in Sri Lanka.