Sri Lanka Inks 20-Year Power Purchase Deal with Adani Green Energy: The Sri Lankan government has approved a deal with Adani Green Energy, led by Gautam Adani, to build wind power stations in Mannar and Poonerin. This agreement, given the go-ahead by the Sri Lankan cabinet on May 7, aims to bolster the country’s renewable energy sector.
Sri Lanka Inks 20-Year Power Purchase Deal with Adani Green Energy
Adani Green Energy will operate under a power purchase agreement lasting 20 years. As per the agreement, the company will receive 8.26 cents per kilowatt-hour (kWh) for the electricity generated from these wind power stations. This move marks a significant step towards increasing the share of renewable energy in Sri Lanka’s power generation and reducing dependency on traditional sources like fossil fuels.
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$442 Million Investment in 484 MW Wind Power Plants
Following Adani Green Energy’s approval in February 2023, they committed to invest $442 million to develop 484 megawatts of wind power plants in the towns of Mannar and Poonerin in Northern Sri Lanka.
Committee Appointed for Negotiations
The Sri Lankan government has formed a negotiating committee, approved by the Cabinet, to assess the project proposals presented by the Indian company.
Expansion of Adani Group in Sri Lanka
The power purchase agreement signals an increasing presence of the Adani Group in Sri Lanka. The group is also engaged in a $700 million terminal project at Colombo, the largest port in the island nation.
Sri Lanka’s Push for Renewable Energy
In 2022, Sri Lanka experienced an economic crisis that resulted in significant power blackouts and fuel shortages. Since then, the financially struggling country has been prioritizing renewable energy projects to reduce reliance on expensive imported fuels.
Financial Performance of Adani Green Energy
On May 3, Adani Green Energy announced a 39% decrease in its net profit to Rs 310 crore for the quarter ending 31st March 2024, compared to Rs. 507 crore in the previous year. Additionally, the company’s revenue dropped by 6% to Rs. 2,806 crore in the fourth quarter, down from Rs. 2,977 crore in the same period last year.
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