State Electric Company (STELCO) plans to begin construction of a new 70-megawatt power plant in Hulhumalé later this year.

STELCO Managing Director Dr Ali Azwar said construction is scheduled to start in September to meet rising electricity demand in the Greater Malé area.

The new medium-speed power plant will be built in Hulhumalé Phase II. Once completed, it will increase Hulhumalé's electricity generation capacity to more than 120MW. Work is also underway on a temporary 20MW power plant in Phase II.

Dr Azwar said the project forms part of efforts to expand electricity services in line with the area's growing population.

He also noted that the Government has revised its earlier 100MW power project, replacing it with a larger 200MW project to be developed in Gulhifalhu to meet future electricity demand.