Adani Green withdraws from wind energy, transmission projects in Sri Lanka

Adani Green Energy, the renewable arm of billionaire Gautam Adani's conglomerate, has withdrawn from two proposed wind power projects in Sri Lanka, following the island nation's new government deciding to renegotiate tariffs.

 

In a press statement, the Adani Group entity said: “Adani Green Energy has conveyed its board’s decision to respectfully withdraw from further engagement in the renewable energy (RE) wind energy project and two transmission projects in Sri Lanka.”

 

“We remain committed to Sri Lanka and are open to future collaboration if the government of Sri Lanka so desires,” the statement added.

 

Adani Group is also developing a container terminal in Colombo, Sri Lanka, in partnership with John Keells and the Sri Lanka Port Authority.

 

The projects in question included two wind power plants to be set up in Mannar and Pooneryn at a total investment of $442 million.

 

According to a 2023 statement from the Board of Investment of Sri Lanka, the Mannar wind power plant was to operate at a capacity of 250 megawatts (Mw), while the Pooneryn plant was planned for 100 Mw and was scheduled to be commissioned by 2025.

 

Adani’s power projects in Sri Lanka have faced turbulence over the past few years.

 

In a recent development last month, Agence France-Presse (AFP) reported that Sri Lanka had revoked the power purchase agreement with Adani Group due to corruption allegations, citing sources from the island nation’s energy ministry. Shortly after, Adani Group issued a statement denying the cancellation, clarifying that tariffs for the project were being re-evaluated as part of a standard process.

 

In 2022, there was a political controversy in Sri Lanka over the awarding of wind energy projects to Adani Green Energy without a competitive bidding process.