Adani Green withdraws from Sri Lanka wind power project

Adani Green Energy Ltd withdrew from building from two renewable energy wind farms in Sri Lanka, the company said in a statement on Wednesday. Adani Green Energy had been under protracted discussions with the Ceylon Electricity Board (CEB) and government departments for over two years to set up two 484 megawatt (MW) renewable energy wind farms in Sri Lanka's Mannar and Pooneryn. The project included the associated transmission system, as also additional 220 kilovolt (kV) and 400 kV transmission network expansion to carry power to the southern part of the island nation.
Adani Green Energy said till date it has spent some $5 million on predevelopment activities. The company said its executives have been holding talks with CEB and Sri Lankan ministry officials in Colombo."As we bow out, we wish to reaffirm that we would always be available for the Sri Lankan government to have us undertake any development opportunity, if it ever considers Adani Group to participate. We wish to convey our best wishes and gratitude to the government of Sri Lanka for the opportunity of engagement," Adani Green Energy said.
Adani Green Energy won the approval in February 2023 to invest $442 million and develop the 484 MW wind power plants in Mannar town and Pooneryn village, both located in the northern province of Sri Lanka.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. Following the bribery accusations, the new administration revoked Adani Group’s power purchase agreement in January and began investigations. The Sri Lankan government then opted to review and renegotiate the terms to bring the cost below $0.06 per unit. Following the announcement of Adani Green’s withdrawal, the company’s shares gained 2 per cent.