The State Electricity Company (STELCO) has signed a US$90 million power development project with China’s Dongfang Electric International Corporation to generate an additional 50 megawatts of electricity.
The state-owned utility company provides electricity services in Malé and its suburbs and presently produces 60 megawatts using 22 engines.
Under its fifth power development project, the company will install six engines over the next two years capable of generating eight megawatts each.
Speaking at a project inauguration ceremony on Thursday, STELCO managing director Abdul Shukoor said the company struggled to generate enough electricity for Malé during the recent hot northeastern monsoon.
STELCO was also unable to do maintenance work on engines and machinery, he said.
Once the power project is complete, Shukoor said STELCO would be able to provide electricity services without interruptions or technical problems.
The project will be financed through the STELCO budget and with loan assistance. The new engines are to be kept at the vacant plot next to the garbage dump.
Shukoor said the company plans to carry out another power development after four years, which will be four times bigger than the current project.