First private grid-connected solar power project

DFCC Bank PLC, a pioneer in renewable energy financing, recently approved a project loan to Saga Solar (Pvt) Ltd., the first large scale commercial solar project with grid connectivity. The project will add 10 Mw of generating capacity and is located at a 45 acre site in Hambantota.

The project financing was a ground breaking initiative undertaken by a team of investors and backed with the expertise of professionals in the Solar Energy sector and the project proposal was. analyzed and structured by DFCC's own team, a Bank press release said. DFCC Bank has structured the financial solution sought by the borrower and is assisting the project promoter from concept to finish.

The Bank is confident that this project will set the stage for other solar energy developers, lending agencies and equity investors to increase their focus on the Solar Energy sector.

DFCC Bank in 1994, financed Sri Lanka's first ever privately owned, grid connected mini-hydro power plant, with both long term debt and equity.

The Bank also financed a pioneering manufacturer of turbines for local and foreign hydro power plants. This project was the recipient of ADFIAP's award for 'Outstanding Project - Technology Development'. Assistance has also been extended to local hydropower developers to set up projects overseas. DFCC Bank was also the pioneer financier for private sector wind power projects in the country, when it part-financed the first wind power project in 2010. Today, hydro and wind power combined supplies nearly 10% of the country's power needs.