- The Sri Lankan government had opted to review and renegotiate the terms to bring the cost below $0.06 per unit from $0.0826, negotiated by the previous administration
- Adani Green has spent about $5 million on pre-development activities to date
NE BUSINESS BUREAU
AHMEDABAD, FEB 14
Adani Green Energy Limited has withdrawn from two proposed renewable energy (RE) wind power projects and two transmission projects in Sri Lanka, following the new government’s decision to renegotiate tariffs. The decision was conveyed in a letter sent by the company to Sri Lanka’s Board of Investment, a company spokesman said here on Thursday.
“Adani Green Energy has conveyed its Board’s decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka,” an Adani Group spokesperson said in a statement. “However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires,” the spokesperson added.
Adani’s renewable energy division had earmarked a $442 million investment for wind power generation and transmission in Sri Lanka. However, the newly elected administration under President Anura Kumara Dissanayake aimed to reduce electricity costs from Adani’s ongoing energy projects in the country.
“It was learnt that another Cabinet-appointed negotiation committee and project committee would be constituted to renegotiate the project proposal,” Adani Green Energy wrote in its letter, dated February 12, to the Sri Lankan government agency. “This aspect was deliberated at the Board of our company, and it was decided that while the company fully respects the sovereign rights of Sri Lanka and its choices, it would respectfully withdraw from the said project.”
In May 2024, the previous Sri Lankan government agreed to purchase power from an Adani wind plant, yet to be built in the northwest region, at $0.0826 per kilowatt-hour. The Sri Lankan government then opted to review and renegotiate the terms to bring the cost below $0.06 per unit.
The Adani Green teams had several rounds of discussions with State-appointed committees. The green energy firm has worked on lands for the project and associated transmission system. Adani Green has spent about $5 million on pre-development activities to date.
