Wijith Pushpawela, Executive Director of DIMO and Director in Charge of the Group’s Power & Energy arm shares insights into DIMO Energy and Sri Lanka’s energy sector outlook. With a strong affiliation with Siemens, renowned for cutting-edge technology, DIMO’s Power and Energy arm “DIMO Energy” has contributed significantly to Sri Lanka’s energy infrastructure, having introduced advanced technologies to mitigate transmission losses, playing a vital role in power transmission and distribution. Recognizing the importance of cost-effective power generation, DIMO Energy is committed to leveraging the latest technologies, including wind, solar, and cogeneration, to reduce energy costs and reliance on diesel and crude oil. Pushpawela notes that the ongoing restructuring process of the Ceylon Electricity Board (CEB) presents lucrative investment opportunities. DIMO Energy is also actively expanding its operations in Africa and the Maldives, focusing on developing economies’ power infrastructure.

How has DIMO contributed to the energy infrastructure of Sri Lanka, particularly in the transmission and distribution of electricity generated from different sources?

We are delighted to say that DIMO and its principals have developed 65% to 70% of the energy infrastructure in Sri Lanka. Our primary brand affiliation lies with Siemens, a German company renowned for its cutting-edge technology and innovative solutions. We are privileged to represent Siemens, which consistently introduces the latest advancements to the global stage, a partnership that extends over six decades.

The energy infrastructure in our country has experienced remarkable progress over the last two decades. The national utility, the CEB, drove this progress with several projects to bolster power stability and minimize transmission losses, setting up power generation plants, followed by transmission lines and grid substations, which are now ubiquitous in the country. From there, distribution takes place, ultimately reaching the end consumer. However, this journey from power generation to consumption incurs significant losses.

Fortunately, Siemens has devised pioneering switchyard technologies that mitigate these losses. DIMO Energy has successfully introduced these state-of-theart technologies to our utility, installing over 65% of all grid substations equipped with Siemens infrastructure leveraging advanced technology. Consequently, we at DIMO Energy take great pride and satisfaction in playing a vital role in the power utility sector, specifically in the critical domains of power transmission and distribution.

Can you tell us about DIMO’s efforts in developing renewable energy in Sri Lanka and beyond?

When discussing renewable energy, our minds tend to gravitate towards wind and other non-conventional renewable sources. However, it is crucial to acknowledge the underlying infrastructure necessary for the evacuation and integration of renewable energy into the grid. While major hydropower is often excluded from the renewable energy realm as a conventional renewable energy source in the power sector, solar and wind power are considered its primary components. Nevertheless, solar power is only accessible during daylight hours, and wind power generation exhibits its pattern of intermittency.

To counteract grid instability, Siemens, along with other prominent brands, has developed newer technologies. Fortunately, we had the opportunity to introduce this technology to our country, notably through the implementation of the first specialized grid substation designed to stabilize power evacuation from solar and wind plants. This groundbreaking achievement was realized in the country’s largest wind farm project, a 100MW endeavour in Mannar. To facilitate power evacuation, we established a dedicated grid substation in Mannar, complemented by another in Anuradhapura.

This remarkable feat incorporates the Variable Shunt Reactor technology, making us the pioneering force behind its introduction and successful execution. Additionally, in the context of the 100MW wind plant project, DIMO Energy encompassed the entire electrical balance of the plant, ensuring its seamless commissioning. With the grid substations, we constructed to facilitate power evacuation, the connection of 100MW of wind power to the grid proceeded without any disruptive grid instability. We have made substantial contributions to the stability of the grid and continue to collaborate closely with the utility to further enhance the integration of renewable energy sources within the country.

Returning to the topic of renewable energy, it is our steadfast belief that, as a tropical nation with substantial potential for solar and wind plants, the country is in dire need of alternative energy sources. These alternatives alleviate the environmental damage caused by fossil fuels while also addressing their exorbitant costs. Although the initial capital investment for solar and wind projects may be significant, they represent the future of sustainable energy. Constructing the necessary infrastructure for the evacuation of power from these plants is equally imperative. In the realm of renewable energy, we actively engage in rooftop and ground-mounted solar systems, with wind plants being a prospective avenue for exploration in due course.

What are the urgent requirements to ensure energy security for the nation?

Energy security is a paramount concern for any nation, just as the need for security extends beyond defence. Relying on external countries or sources for energy generation and distribution can expose a nation to numerous issues and vulnerabilities. Consequently, energy security has garnered significant attention from the government, which recognizes its importance. It is crucial to note that energy security and cost-effective energy are two distinct but interconnected facets. Achieving energy security entails managing our production while keeping generation costs as low as possible to drive industrial development.

In our assessment at DIMO, striking a balance requires the country to explore alternative energy sources, while avoiding reliance on any specific country or source. Establishing domestic liquefied gas processing infrastructure, referred to as terminals, would grant us the freedom to procure gas like our current procurement of diesel and crude oil. It is important to ensure that the supply of LNG remains independent of external influences.

This represents one approach to fortifying energy security. Additionally, as previously mentioned, the shift towards renewable energy sources is another key aspect as these sources are 100% indigenous once installed. The government is commendably on the right track, actively pursuing plans to increase the proportion of renewable energy in the overall energy mix, surpassing the reliance on fossil fuels.

We understand that the DIMO Energy brand launched recently. Can you share any plans or strategies for the brand and how it will further fuel the dreams and aspirations of people through powering the future?

Despite our recent branding as DIMO Energy, we have a long-standing presence in the energy sector. As early as 1998, we collaborated with Siemens to construct the Sapugaskanda power plant. Even before that, we had been actively involved in the power sector alongside our principal, Siemens. Our projects in power infrastructure include noteworthy achievements, such as the country’s inaugural microgrid initiative. By bringing in advanced technologies and participating in renewable energy projects, we recognized the need to consolidate our energy-related endeavours under a dedicated division.

Within our portfolio, we operate our panel-building facility, engaging extensively in medium-voltage projects for various industries. Moreover, our involvement in power utility projects, particularly in collaboration with the CEB, extends to the construction of grid substations. Through this integration of power-related businesses, we established the brand identity of DIMO Energy. Our foremost objective is to meet the nation’s energy requirements while aligning our strategies with Sri Lanka’s power generation plan. With our plans firmly laid out, we are actively pursuing agrivoltaics, which involves the installation of solar plants on agricultural fields.

Given Sri Lanka’s limited land space, it becomes imperative to strike a balance between clean energy generation and environmental preservation. Merely clearing vast areas of land for ground-mounted solar systems would compromise the natural ecosystem. To address this, we explore alternative solutions based on existing technologies implemented in regions such as Africa. Under this approach, solar panels are integrated into agricultural fields, enabling the cultivation of specific plants that thrive when shielded from direct sunlight. Referred to as agrophotovoltaics, or agrivoltaics, this innovative technique minimizes the environmental trade-offs associated with solar energy production.

We are committed to developing agrivoltaics projects and anticipate initiating a pilot project soon. Collaborating closely with utility providers and government authorities is paramount, particularly due to the relatively higher initial investment required for agrivoltaics compared to conventional ground-mounted solar systems. The installation of elevated structures to accommodate solar panels necessitates strategic coordination with relevant authorities. Consequently, agrivoltaics represents a key focal point for our current endeavours. Additionally, we continue to pursue ground-mounted solar plant projects, ensuring our plans remain wellaligned and on schedule. DIMO Energy is poised to become one of the leading generators within the group in the foreseeable future.

How do DIMO Energy’s goals align with the future power and energy needs of the country?

Cost-effective power generation is undeniably crucial for Sri Lanka. According to the CEB Long Term Generation plan for 2023- 42, the average growth of installed capacity between 2016-21 had only been 0.59% whereas the peak demand had grown by an average of 2.6% for the same period. What this means is that adding renewable energy sources to the mix, like hydro, wind, solar and biomass, is not going to be enough to meet the off-peak demand, let alone peak demand.

As witnessed recently, the government had no choice but to increase tariffs due to heavy reliance on crude oil. Fluctuating oil prices necessitate tariff adjustments, which in turn, burden industries and potentially drive them away from the country in search of lower production costs. As a responsible corporate entity, we acknowledge the significance of lowcost power generation.

However, it is noteworthy that the government is pursuing a policy to strengthen installed capacity and expressed a commitment to shift the renewable energy contribution to 70% by 2030. According to the CEB data, the contribution of non-conventional energy sources like solar and wind is less than 18% of the total generation today and the rest of the energy requirement is catered through major hydropower plants and thermal power plants. This renewable energy-focused strategy will translate into 500MW of solar and 150MW of wind capacity increases annually, leading to proposed cumulative capacities of 10,739MW in solar, and 3,573MW in wind by 2042 according to the CEB Long Term Generation plan. In addition, there will also be 1,400MW of pumped hydro storage development by 2032 and 3,365MW of battery storage development by 2042, all of these present tremendous opportunities for companies like DIMO.

Consequently, we are committed to leveraging the latest technologies to minimize losses and harness the potential of wind and solar energy. Additionally, we explore the avenue of cogeneration as a means to support industries. Many of our industries inherently generate heat as part of their production processes, and we recognize the opportunity to convert this heat into energy. By investing in cogeneration plants, such as those for garment or cement factories, we can utilize the produced heat to generate steam, which can then generate energy through steam turbines. This approach was not economically viable in the past due to the country’s subsidized energy. However, with recent tariff revisions, cogeneration has emerged as a promising solution to further reduce energy costs and lessen reliance on diesel and crude oil.

DIMO Energy possesses the necessary expertise and capacity to design grid substations and renewable energy power plants, thanks to our skilled and well-trained engineers. It is worth noting our in-house capabilities in this regard.

With the proposed restructuring of the power utility, potential improvements to the grid and power generation are expected. Such developments offer favourable prospects for companies like DIMO to invest in and engage in making the grid infrastructure more efficient, cost-effective and environmentally friendly. We have already established our operations in Uganda, and Maldives, these regions show considerable potential for enhancing their power infrastructure, and we are actively pursuing opportunities to expand our presence there, focusing on developing the energy business and leveraging our resources and competencies in developing economies