Graess Energy will sell solar power to Maldives

SBI Offshore Limited’s subsidiary, Graess Energy Pte Ltd will be selling solar power in the Maldives through a Power Purchase Agreement (PPA) with the Maldives government.

Gräss Solartechnik Schweiz SA (GSS), a related company of Graess Energy, will design, engineer and build the solar photovoltaic (PV) system to be installed on the rooftops of government buildings in the Greater Male region.

Graess Energy will cooperate with China Machinery Engineering Corporation CMEC in the form of a special purpose company (SPC) to own, operate and sell solar power to State Electric Company Ltd (STELCO), a company wholly-owned by the Government of Maldives. CMEC will own 70% of the SPC and Graess Energy will hold the remaining 30% stake.

The PPA is expected to be signed in the middle of October 2015 between STELCO and the SPC for a period of 20 years before the full ownership of the PV System is transferred to STELCO.

The PV System will have an initial generation capacity of 1.5 megawatts and its total cost is expected to be in the region of US$3.5 million. Total revenue from the sale of power is expected to be about US$550,000 per year.

“We are grateful for this award and see this as a significant step in our endeavor to penetrate the Maldives market as the Government of Maldives is promoting greater use of renewable energy.” said Mr. Chan Lai Thong, Executive Chairman of SBI Offshore.