Adani Green enters into agreement with Sri Lankan government for building wind power plants

7 May 2024 , 12:25 PM

The Sri Lankan government signed an agreement on Tuesday with Indian billionaire Gautam Adani’s renewable energy company, Adani Green, to build wind power plants in the nation.

Adani Green Energy would build wind power stations in Mannar and Poonerin, Sri Lanka. The Sri Lankan Cabinet has formed a negotiation committee to assess the project proposal submitted by Adani Green. In February 2023, the renewable energy firm received license to invest $442 Million in the development of two 484-megawatt wind power projects in Northern Sri Lanka.

A 20-year power purchase agreement has been inked between the two parties. According to the deal, Adani would be paid 8.26 cents per kilowatt-hour (kWh).

In 2023, the US government-backed International Development Finance Corp extended a loan of around $553 million to Adani Ports for a container port in Sri Lanka.

The financially troubled South Asian island nation, which had significant power outages and fuel scarcity during an economic slump in 2022, has accelerated renewable energy projects to offset increases in imported fuel costs.

Adani Green’s shares rose to ₹1,790 per share following the news of this development, before falling back to ₹1,770.

However, later in the day, company’s counter erased all early morning gains.

At around 12.10 PM, Adani Green was trading 1.90% lower at ₹1,733 per piece, against the previous close of ₹1,766.05 on NSE.

The Adani Group is also building a $700 million terminal in Colombo, Sri Lanka’s major port.

The cash-strapped South Asian island nation, which had devastating power outages and gasoline shortages during an economic crisis in 2022, has been attempting to accelerate renewable energy projects to hedge against increases in imported fuel costs.

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