On Tuesday, a cabinet statement announced that Sri Lanka has signed a 20-year power purchase agreement with Adani Green Energy Ltd for two wind power stations developed by the company.
Last February, the renewable energy division of the Adani Group, led by billionaire Gautam Adani, received clearance to invest $442 million in constructing wind power facilities totalling 484 megawatts in capacity.
These plants will be situated in Mannar town and Pooneryn village, both located within Sri Lanka’s Northern province.
The power purchase agreement spans 20 years, with Adani Green Energy receiving compensation at a rate of 8.26% per kilowatt-hour (kWh).
A negotiation committee has been established by the Sri Lankan Cabinet to assess the project proposal put forth by Adani Green. Additionally, the Adani Group is involved in a $700 million terminal project at Colombo’s largest port.
Facing economic challenges, Sri Lanka encountered significant power outages and fuel shortages during its 2022 economic crisis. In response, the nation has accelerated its renewable energy initiatives to mitigate the escalating costs of imported fuels.
Following the announcement of this collaboration, shares of Adani Green surged to ₹1,790 each, later stabilizing at ₹1,770 during early trading.
In 2023, the US government-backed International Development Finance Corp provided a loan of approximately $553 million to Adani Ports for a container terminal project in Sri Lanka.
