Charisma Energy Services Secures Major Battery Energy Storage Project in Sri Lanka

Key Highlights of the Announcement

• Letter of Award for Battery Energy Storage System (BESS): Charisma Energy Services Limited (“Charisma Energy” or “the Company”), through its wholly-owned subsidiary WKV Hydro Technics (Pvt) Ltd. (“WKV”), has received a Letter of Award from the Ceylon Electricity Board (CEB), Sri Lanka’s government electricity utility, to build, own, and operate a standalone Battery Energy Storage System (BESS) with a capacity of 10 megawatts (MW) and 40 megawatt-hours (MWh).
• Strategic Expansion into Energy Storage: This award is part of Sri Lanka’s grid modernization, as the CEB integrates more renewable energy and seeks to stabilize grid operations. CEB’s initiative aims to use BESS to store excess renewable energy, meet peak demand, and provide rapid frequency regulation.
• 15-Year Operational Period: The BESS project will be operated for 15 years, following a tender process initiated by CEB on July 30, 2025.
• Timeline and Funding: WKV is required to achieve commercial operation within nine months from the signing of the Energy Storage Agreement (ESA), which is expected to occur within one month from the award acceptance. The project will be funded through a mix of internal resources and external financing.
• Financial Impact: The project is expected to contribute positively to the Group’s revenue for the financial year ending December 31, 2027. However, it is not expected to have a material impact on earnings per share or net tangible assets per share for the year ending December 31, 2026.
• Portfolio Diversification: The Group’s renewable energy portfolio will now include mini-hydro power plants, ground-mounted solar power, and battery energy storage, further supporting stable, future-oriented growth and enhanced portfolio diversification.

Potentially Price-Sensitive and Shareholder-Relevant Information

• Strategic Growth: The award marks a significant step post-restructuring (completed June 16, 2025), reflecting the Group’s renewed focus on renewables and energy transition opportunities. This could potentially improve investor confidence in the Company’s long-term growth trajectory.
• Pipeline of Green Projects: The Company is actively pursuing additional projects in Sri Lanka’s sustainable and renewable energy sector, signaling its intent to capture emerging opportunities in this fast-growing industry.
• Uncertainties and Caution: While the BESS award is a positive development, shareholders are cautioned that there is no certainty regarding the project’s future success. The Company advises stakeholders to monitor future announcements for material updates.

Additional Details for Investors

• No Director or Controlling Shareholder Conflict: Except for their directorships and shareholdings, none of the Directors or controlling shareholders have any direct or indirect interest in the BESS project award.
• Further Announcements Expected: Investors should expect further updates on both the BESS project and other renewable energy initiatives as the Company executes its growth strategy in Sri Lanka and the broader region.
• Trading Advisory: Given the project’s early stage and potential execution risks, shareholders are advised to exercise caution in trading Charisma Energy shares and to consult professional advisers if in doubt.

Conclusion

The award of the 10MW/40MWh BESS project in Sri Lanka positions Charisma Energy Services as a key player in the region’s renewable energy transformation. While the immediate financial impact may not be significant for FY2026, the project is expected to drive revenue growth in subsequent years and signals the Company’s intent to deepen its involvement in the energy transition space. Investors should closely monitor further updates, as successful execution and additional project wins could be catalysts for share price movement.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Shareholders and potential investors should consult their own professional advisers before making any investment decisions. The information herein is based on Company announcements and is subject to change as new information becomes available.

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