Adani Green Energy signs 20-year deal for wind power stations in Sri Lanka

Sri Lanka has signed a 20-year deal with Adani Green Energy Ltd for the construction of two wind power stations, according to a cabinet statement released on Tuesday.

The renewable energy arm of the Adani Group, headed by billionaire Gautam Adani, secured approval last February to invest $442 million in developing wind power plants with a combined capacity of 484 megawatts.

These stations will be located in Mannar town and Pooneryn village, situated in Sri Lanka’s Northern province.

The power purchase agreement is for a duration of 20 years, where Adani Green Energy’s compensation rate stands at 8.26 cents per kilowatt-hour (kWh).

The Sri Lankan Cabinet has formed a negotiation committee to evaluate the project proposal submitted by Adani Green.

The Adani Group is also engaged in a $700 million terminal initiative at Colombo’s largest port.

Struggling with economic difficulties, Sri Lanka experienced severe power outages and fuel scarcities during its 2022 economic crisis. In response, the country has been expediting renewable energy projects to mitigate rising costs of imported fuels.

Following the announcement of this venture, Adani Green’s shares surged to Rs 1,790 each before settling at Rs 1,770 in early trade.

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 in Sri Lanka.