Sri Lanka has taken a significant step towards bolstering its renewable energy sector by sealing a 20-year deal with Adani Green Energy for the construction of two wind power stations, as per a cabinet statement released on Tuesday.
Adani Green Energy, the renewable energy arm of the Adani Group helmed by billionaire Gautam Adani, received approval last February to invest a substantial $442 million in developing wind power plants with a combined capacity of 484 megawatts.
The two wind power stations will be strategically located in Mannar town and Pooneryn village, both situated in Sri Lanka’s Northern province.
Under the terms of the power purchase agreement, Adani Green Energy will supply electricity for a duration of 20 years at a compensation rate of 8.26 cents per kilowatt-hour (kWh).
To ensure the project’s smooth progress, the Sri Lankan Cabinet has established a negotiation committee tasked with evaluating the project proposal submitted by Adani Green Energy.
This development comes amidst Sri Lanka’s efforts to address its economic challenges, which were exacerbated by severe power outages and fuel scarcities during the 2022 economic crisis. The country is now expediting renewable energy projects to mitigate the escalating costs associated with imported fuels.
In addition to this venture, the Adani Group is also actively involved in a $700 million terminal initiative at Colombo’s largest port. Following the announcement of the partnership, shares of Adani Green Energy witnessed a surge, reaching Rs 1,790 each before settling at Rs 1,770 in early trade.
Moreover, in a bid to support infrastructure development in Sri Lanka, the US government-backed International Development Finance Corp extended a loan of about $553 million to Adani Ports in 2023 for a container terminal project.
The collaboration between Sri Lanka and Adani Green Energy underscores a shared commitment towards sustainable energy solutions and marks a significant stride in advancing renewable energy adoption in the region.
