Sri Lanka has announced that it plans to build its first wind farm in Hambantota. The project, to be build by NEG Micon, is expected to cost just under $4 million.

The 3 MWe wind farm is being financed with a loan from the International Development Association, part of the World Bank, and a grant from the Global Environment Facility. Local costs will be borne by the Ceylon Electricity Board under its renewable energy development budget.

According to the Ministry of Power and Energy, there is a potential wind capacity in Sri Lanka’s south eastern coastal belt of around 200 MWe. Currently the country relies heavily on hydropower, but most of its potential has already been utilized. Demand has been growing at an annual rate of 8.4 per cent, and the government is seeking new sources of power.