Aerial view of airport solar panels

Research Proposal Report Solar PV Power Project at Mattala Rajapaksa International Airport

A Sustainable Investment Opportunity in Green Aviation and Non-Aviation Infrastructure

15
MWp Initial
102
MWp Potential
24K
MWh/Year

High Solar Potential

~2000 kWh/m²/year irradiance

Hambantota region offers exceptional solar energy generation potential, ensuring optimal project economics and maximum ROI.

PPP Partnership

30-year lease security

AASL committed to public-private partnership model with long-term land lease and comprehensive support framework.

Executive Summary

Project Scope

15 MWp ground-mounted solar PV system with expansion potential up to 102 MWp at MRIA, Hambantota

Strategic Alignment

Supports Sri Lanka's renewable energy goals and MRIA's vision as South Asia's green airport hub

Investment Appeal

Attractive long-term opportunity with stable revenue, ESG benefits, and scalable growth potential

This research proposal outlines a comprehensive ground-mounted solar photovoltaic (PV) power project at Mattala Rajapaksa International Airport (MRIA), Sri Lanka. The project represents a sustainable investment opportunity in green aviation infrastructure, with an initial capacity of 15 MWp and potential expansion to 102 MWp.

MRIA offers distinct advantages including extensive land availability, high solar irradiance (~2000 kWh/m²/year), and existing electrical infrastructure. Airport and Aviation Services (Sri Lanka) Limited (AASL) demonstrates full commitment to realizing this project through a public-private partnership model, providing long-term land lease and comprehensive support.

The project is strategically significant, aligning with national energy policies, supporting UN Sustainable Development Goals (SDG 7, 9, 13), and positioning MRIA as a leader in sustainable aviation practices while offering investors competitive returns and strong ESG credentials.

Background and Context

MRIA: Strategic Location and Vision

Mattala Rajapaksa International Airport, located in Hambantota, Southern Sri Lanka, occupies a strategic position as a potential aviation hub in South Asia. Its geographical proximity to major shipping routes and emerging economic centers enhances its significance.

AASL envisions transforming MRIA into South Asia's foremost green airport hub, integrating sustainable practices across all operations. This solar PV project serves as a cornerstone of that vision, aiming to significantly increase renewable energy share in the airport's power mix.

The development will elevate MRIA's profile as a leader in sustainable aviation, attracting environmentally conscious airlines and partners while enhancing long-term competitiveness.

Mattala Rajapaksa International Airport

Policy Alignment

  • National Energy Policy Compliance
  • SDG 7: Affordable and Clean Energy
  • SDG 9: Industry, Innovation and Infrastructure
  • SDG 13: Climate Action

Land Availability and Solar Potential

Feature Initial Phase (15 MWp) Potential Expansion (Up to 102 MWp) Notes
Land Area Required Approx. 30 acres Approx. 200 acres Dependent on technology and layout
Land Availability at MRIA Confirmed Under Assessment AASL has identified suitable zones
Average Solar Irradiance ~2000 kWh/m²/year ~2000 kWh/m²/year Hambantota region has high solar potential
Estimated Annual Yield ~24,000 MWh ~163,200 MWh Based on performance ratio of ~80%

Table 1: Land Availability and Solar Potential at MRIA

Project Objectives

Energy Demand Fulfillment

  • Meet 70-100% of MRIA's daytime energy demand
  • Reduce reliance on national grid and diesel generators
  • Provide long-term energy cost predictability
  • Achieve significant operational cost savings

Environmental Sustainability

  • Reduce CO₂ emissions by 7,000-8,000 MT annually
  • Contribute to Sri Lanka's NDCs under Paris Agreement
  • Demonstrate commitment to green aviation
  • Set benchmark for regional airports

Investment Attraction

  • Position MRIA as green investment destination
  • Enhance profile as sustainable airport leader
  • Attract environmentally conscious partners
  • Foster cluster of green businesses

Technical Overview

System Specifications

The project involves design, engineering, procurement, construction, and commissioning of a ground-mounted solar PV power plant with initial capacity of 15 MWp. This capacity is selected to match significant portion of MRIA's daytime energy consumption.

Critically, the project is designed with scalability in mind, with potential future expansion capability of up to 102 MWp. This phased approach allows for learning from initial deployment and adapting to future technological advancements.

The system will utilize high-efficiency solar PV modules and state-of-the-art inverters to maximize energy yield and ensure reliable long-term performance, adhering to international standards for utility-scale solar PV plants.

Design Considerations

Fixed-Tilt vs. Tracking Systems

Evaluation of optimal configuration considering:

  • • Capital and operational costs
  • • Land availability constraints
  • • Energy yield optimization
  • • Maintenance requirements

Battery Energy Storage (Optional)

Assessment of BESS integration benefits:

  • • Enhanced energy security
  • • Grid stability support
  • • Peak demand management
  • • Increased solar power value

Energy Production Estimates

System Capacity (MWp) Estimated Annual Energy Production (MWh) Estimated Annual CO₂ Savings (Metric Tons)
15 ~24,000 ~7,000 – 8,000
50 ~80,000 ~23,000 – 26,000
102 ~163,200 ~47,000 – 53,000

Table 2: Estimated Energy Production and CO₂ Savings

Grid Connection and Site Suitability

Grid Integration

  • Grid-tied connection via existing airport substation
  • Compliance with CEB and PUCSL standards
  • Minimal new infrastructure requirements
  • Efficient power distribution within airport

Solar Resource

~2000 kWh/m²/year

Average Global Horizontal Irradiance

Hambantota district offers exceptional solar resource quality

Financial Framework

Public-Private Partnership Model

The MRIA solar PV project will be developed under a Public-Private Partnership (PPP) framework, leveraging strengths of both public and private sectors for optimal project delivery and risk management.

AASL (Public Partner)

  • • Land provision on long-term lease
  • • Facilitation of approvals and permits
  • • Grid connectivity support
  • • Power off-take commitment

Investor/Developer (Private Partner)

  • • Project financing and investment
  • • Design, engineering, and construction
  • • Operation and maintenance
  • • Technology and innovation expertise

Revenue Streams & Incentives

Primary Revenue: Power Purchase Agreement

Long-term PPA (20-25 years) with AASL at agreed tariff provides stable, predictable cash flow

Government Incentives

  • • Feed-in tariffs for renewable energy
  • • Tax concessions and duty waivers
  • • Streamlined approval processes
  • • Policy support for green energy

Additional Revenue Potential

  • • Carbon credit generation
  • • Grid services and ancillary revenue
  • • Energy storage value optimization

Financial Projections

30 Years
Long-term Lease Security
Competitive IRR
Attractive Return on Investment
Stable Cash Flow
Predictable Revenue Stream

Comprehensive Financial Modeling

Detailed financial analysis will include Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period calculations, supported by sensitivity analysis for key variables:

  • • Solar resource variability assessment
  • • Capital cost fluctuations
  • • PPA tariff structure optimization
  • • Operational expenditure projections
  • • Financing terms and conditions
  • • Currency exchange rate impacts

Environmental and Social Impact

Positive Environmental Contributions

CO₂ Emission Reductions

7,000-8,000 MT/year

Estimated annual CO₂ savings from 15 MWp system through fossil fuel displacement

Renewable Energy Generation

24,000 MWh/year

Clean electricity production from initial phase, contributing to national energy security

Climate Change Mitigation

Direct contribution to Sri Lanka's Nationally Determined Contributions under Paris Agreement and global climate action goals

Socio-Economic Benefits

Job Creation

Construction Phase
Skilled and unskilled labor opportunities
Operational Phase
Long-term technical and maintenance roles

Significant direct and indirect employment generation throughout project lifecycle

Local Economic Stimulus

  • Procurement of local goods and services
  • Enhanced regional reputation for green technology
  • Potential for attracting further sustainable investments
  • Improved livelihoods in Hambantota region

Addressing Historical Environmental Challenges

Ecological Context

MRIA development previously impacted approximately 2,000 hectares of forested area that served as habitat for an estimated 100-150 wild elephants [49], leading to increased human-elephant conflict.

The solar PV project will implement comprehensive mitigation measures based on lessons learned from prior environmental assessments.

Mitigation Strategies

  • • Detailed site-specific Environmental Impact Assessment
  • • Careful solar farm location selection to avoid critical habitats
  • • Vegetative buffers and wildlife passage maintenance
  • • Advanced monitoring technologies (camera traps, sensors)
  • • Integration of habitat enhancement measures
  • • Comprehensive Environmental Management Plan

Innovative Approaches

  • • Protein profiling and biomarker analysis for wildlife monitoring [153]
  • • Avian surveys to understand bird species and flight patterns
  • • Strategic panel placement to minimize wildlife impacts
  • • "Ecovoltaics" concept integrating energy production with ecological benefits
  • • Collaboration with Department of Wildlife Conservation

Enhanced ESG Performance

For AASL/MRIA

  • Demonstrated commitment to sustainable aviation
  • Improved reputation among passengers and airlines
  • Alignment with global best practices
  • Enhanced regulatory compliance

For Investors

  • Strong ESG credentials for capital attraction
  • Improved risk management profile
  • Positive corporate image enhancement
  • Competitive advantage in sustainable investing

Stakeholder Ecosystem

Key Project Stakeholders

AASL

Airport and Aviation Services (Sri Lanka) Limited

  • • Project proponent and landowner
  • • Primary power off-taker
  • • Facilitation of project implementation

CEB

Ceylon Electricity Board

  • • Grid interconnection approval
  • • Power purchase agreements
  • • Grid code compliance

SLSEA

Sri Lanka Sustainable Energy Authority

  • • Renewable energy policy guidance
  • • Project approvals and incentives
  • • Technical standards compliance

Regulatory Bodies

  • • PUCSL - Tariff approvals
  • • CEA - Environmental clearances
  • • DWC - Wildlife conservation
  • • CAASL - Aviation safety

EPC Contractors

Engineering, Procurement, Construction

  • • Technical expertise provision
  • • Project management execution
  • • Supply chain management

Investors

Financial Institutions & Developers

  • • Project financing provision
  • • Risk management expertise
  • • Long-term asset management

Required Government Support

Policy Support

  • • Clear and stable renewable energy regulations
  • • Attractive incentive frameworks
  • • Streamlined approval processes

Fast-Track Approvals

  • • Expedited environmental clearances
  • • Timely grid connection approvals
  • • Efficient land lease processing

Financial Incentives

  • • Duty waivers for imported equipment
  • • Tax concessions for renewable projects
  • • Feed-in tariff guarantees

Collaboration Framework

graph TB A["AASL - Project Leader"] --> B["CEB - Grid Integration"] A --> C["SLSEA - Policy Guidance"] A --> D["EPC Contractors"] A --> E["Investors"] B --> F["Regulatory Approvals"] C --> F D --> G["Construction & O&M"] E --> H["Project Financing"] F --> I["Project Implementation"] G --> I H --> I I --> J["Successful Operation"]

Stakeholder Collaboration Flow

Risk Mitigation Plan

Risk Identification

Regulatory Risks

  • • Delays in permits and approvals
  • • Changes in government policies
  • • Tariff setting uncertainties
  • • Grid access regulation changes

Technical Risks

  • • Equipment underperformance
  • • Design and construction flaws
  • • Grid interconnection challenges
  • • Operational maintenance issues

Additional Risk Categories

Climatic Risks

  • • Solar irradiance variability
  • • Extreme weather events (cyclones)
  • • Monsoonal rain impacts
  • • Long-term climate change effects

Cost-Related Risks

  • • Solar panel price fluctuations
  • • Currency exchange rate volatility
  • • Construction cost overruns
  • • Operational cost increases

Proposed Mitigation Strategies

Proactive Risk Management

Regulatory Risk Mitigation
  • • Early and continuous agency engagement
  • • Thorough application documentation
  • • Legal and expert advisory support
  • • Alternative regulatory pathway planning
Technical Risk Mitigation
  • • Reputable EPC contractor selection
  • • High-quality certified equipment usage
  • • Rigorous design reviews and QA/QC
  • • Comprehensive O&M contracts with guarantees

Operational Safeguards

Climatic Risk Mitigation
  • • Weather-resistant design standards
  • • Regular maintenance and cleaning schedules
  • • Natural disaster insurance coverage
  • • Climate adaptation planning
Cost Risk Mitigation
  • • Long-term supply agreements
  • • Local sourcing optimization
  • • Financial planning with contingencies
  • • Currency hedging mechanisms

Contingency Planning Framework

Risk Register

Comprehensive risk tracking with regular updates and clear responsibility assignments

Monitoring System

Continuous risk assessment with early warning indicators and trend analysis

Adaptive Response

Flexible mitigation implementation with regular strategy adjustments

Timeline and Milestones

Project Phases and Duration

Phase Key Activities Estimated Duration
1. Feasibility & Development Detailed site assessment, solar resource analysis, EIA, financial modeling, PPP structuring, securing initial approvals 3-6 Months
2. Procurement & Financing EPC contractor selection, finalizing financing agreements, securing all permits 3-4 Months
3. Construction Site preparation, civil works, mounting structure installation, panel and inverter installation, electrical works, grid connection 6-9 Months
4. Commissioning & Handover System testing, performance verification, grid synchronization, operational readiness, handover to O&M team 1-2 Months

Total project duration: 13-21 months from feasibility commencement to commissioning

Key Deliverables

Feasibility Phase

  • • Detailed feasibility study report
  • • Environmental Impact Assessment
  • • Preliminary design documentation
  • • Financial model and PPP agreement

Procurement Phase

  • • Signed EPC contract
  • • O&M agreement execution
  • • Project financing closure
  • • All necessary permits and approvals

Construction Phase

  • • Completed solar PV plant
  • • Civil, mechanical, electrical works
  • • Pre-commissioning test reports
  • • Completion certificate

Commissioning Phase

  • • Commissioning test reports
  • • Performance acceptance certificates
  • • Operational handover documentation
  • • Commercial Operation Date declaration

Project Timeline Visualization

Feasibility & Development Months 1-6
Procurement & Financing Months 7-10
Construction Months 11-19
Commissioning & Handover Months 20-21

Critical Success Factors

  • • Timely regulatory approvals and permits
  • • Effective stakeholder coordination
  • • Quality assurance throughout implementation
  • • Proactive risk management

Strategic Benefits

Investor Benefits

Secure Asset Base

30-Year Land Lease

Long-term land lease from AASL provides stability and minimizes land-related uncertainties

High Energy Yield

Exceptional Solar Resource

High solar irradiance at MRIA site translates to superior energy yields and project economics

ESG Credentials

Sustainability Leadership

Enhanced environmental credentials appealing to socially responsible investors and lenders

Market Entry

Strategic Positioning

Entry into Sri Lanka's renewable energy sector and specialized airport-linked infrastructure market

AASL Benefits

Cost Savings

Operational Efficiency

Significant cost savings through predictable solar power pricing compared to conventional sources

Sustainability Leadership

Environmental Commitment

Drastically reduced carbon footprint and enhanced sustainability metrics for airport operations

Green Hub Status

Industry Recognition

Positioning MRIA as South Asia's leading green airport hub, attracting eco-conscious partners

Energy Resilience

Grid Independence

Reduced dependence on national grid and diesel generators, enhancing operational reliability

Mutual Value Creation

Partnership Synergy

Public-private collaboration leveraging respective strengths for optimal project outcomes

Long-term Growth

Scalable project framework supporting future expansion and technological advancement

Global Impact

Demonstration project showcasing sustainable aviation infrastructure development

Conclusion and Call to Action

Project Viability Reaffirmed

This comprehensive research proposal demonstrates the significant potential and compelling viability of developing a ground-mounted solar PV power project at Mattala Rajapaksa International Airport. MRIA's strategic advantages - including abundant land availability, exceptional solar irradiance, and existing infrastructure - create an ideal environment for this transformative sustainable investment.

The project's alignment with national energy policies, global sustainability goals, and its robust financial framework underscore its attractiveness to investors seeking impactful and profitable ventures in the renewable energy sector. The detailed technical, environmental, and risk mitigation strategies demonstrate a thorough and responsible approach to project development.

MRIA is Ready

With AASL's strong commitment, identified land parcels, and supportive policy environment, MRIA is prepared to host this pioneering solar PV project that promises substantial benefits for all stakeholders.

Aerial view of solar panels at an international airport

Broader Development Impact

The MRIA solar PV project extends beyond energy generation, representing a strategic investment in Sri Lanka's sustainable future and contributing meaningfully to:

  • National energy security enhancement
  • Green economic growth stimulation
  • Climate change mitigation efforts
  • Sustainable infrastructure development

Invitation for Expressions of Interest

AASL extends a formal invitation for Expressions of Interest from qualified investors, developers, and EPC contractors to participate in this landmark public-private partnership for sustainable aviation infrastructure development.

We Seek Partners Who:

  • • Share our vision for sustainable aviation
  • • Possess technical expertise in utility-scale solar PV
  • • Have strong financial capacity and experience
  • • Are committed to highest development standards

This Opportunity Offers:

  • • Long-term secure investment environment
  • • Exceptional solar resource potential
  • • Strategic market entry positioning
  • • Strong ESG credentials and impact

Alignment with Global Goals

Investing in this project represents an investment in a cleaner, greener, and more resilient future for Sri Lanka and the South Asian region. The MRIA solar PV initiative perfectly aligns with global climate action objectives while demonstrating practical pathways for decarbonizing aviation infrastructure and promoting sustainable development.

Global Climate Action
Environmental Stewardship
Economic Growth
Social Development