Sri Lanka Inks 20-Year Power Purchase Deal with Adani Green Energy

The Sri Lankan government has approved an agreement with Adani Green Energy, led by Gautam Adani, for the development of wind power stations in Mannar and Poonerin. The agreement was given the green light by the Sri Lankan cabinet on May 7. Under the power purchase agreement, which has a duration of 20 years, Adani Green Energy will be paid 8.26 cents per kilowatt-hour (kWh) for the electricity generated from the wind power stations.

$442 Million Investment for 484 MW Wind Power Plants

The deal follows Adani Green Energy’s approval in February 2023 to invest $442 million and develop 484 megawatts of wind power plants in the two towns of Mannar and Poonerin in Northern Sri Lanka.

Negotiating Committee Appointed

The Sri Lankan government has appointed a negotiating committee, approved by the Cabinet, to review the project proposals offered by the Indian company.

Adani Group’s Growing Presence in Sri Lanka

The power purchase deal marks a growing presence of the Adani Group in Sri Lanka. The group is already involved in developing a $700 million terminal project at Colombo, which is the island nation’s largest port.

Sri Lanka’s Renewable Energy Push

Sri Lanka faced an economic crisis in 2022, leading to severe power blackouts and fuel scarcity. Since then, the cash-strapped nation has been trying to fast-track renewable energy projects to hedge against surges in imported fuel costs.

Adani Green Energy’s Financial Performance

On May 3, Adani Green Energy reported a 39 percent drop in its net profit at Rs 310 crore for the quarter ended March 31, 2024, compared to Rs 507 crore a year ago. The company’s revenue also declined by 6 percent to Rs 2,806 crore in the fourth quarter, compared to Rs 2,977 crore in the same period last year.