Adani Green Energy Withdraws from Sri Lanka Wind Project Amid Tariff Dispute
Adani Green Energy Ltd has decided to withdraw from its planned wind power projects in Sri Lanka after the government sought lower tariffs, Bloomberg reported, citing a letter from the Adani Group. The proposed projects in Mannar and Pooneryn, including the required transmission lines, would have brought an estimated $1 billion investment into Sri Lanka.
Adani Green Energy Ltd has decided to withdraw from its planned wind power projects in Sri Lanka after the government sought lower tariffs, Bloomberg reported, citing a letter from the Adani Group. The proposed projects in Mannar and Pooneryn, including the required transmission lines, would have brought an estimated $1 billion investment into Sri Lanka.
According to the report, the Sri Lankan government, led by President Anura Kumara Dissanayake, attempted to reduce electricity prices to below 6 US cents per unit. This was a shift from the previous administration’s agreement to purchase power at 8.26 US cents per unit.
The decision marks another setback for the Adani Group, which has recently faced challenges in Bangladesh due to unpaid dues and in Kenya, where infrastructure projects were scrapped following a bribery probe by the US Securities and Exchange Commission (SEC).
The Sri Lankan wind project was seen as an opportunity for Adani Green Energy to expand its global wind portfolio, which currently forms a smaller part of its renewable energy generation. The company had even planned to transmit renewable energy from Sri Lanka to India by linking the two nations’ power grids. However, with the tariff negotiations falling through, these plans have now been shelved.
Sources By Agencies
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