On Tuesday, Sri Lanka announced a significant step towards enhancing its renewable energy capacity by finalizing a 20-year power purchase agreement with Adani Green Energy Ltd, an Indian-based company. This agreement pertains to two wind power stations developed by Adani Green Energy, with the project estimated to have a total capacity of 484 megawatts. These wind power plants are located in Mannar town and Pooneryn village, situated in the Northern province of Sri Lanka.
Adani Green Energy, a subsidiary of the Adani Group led by billionaire Gautam Adani, secured approval in February of the previous year to invest $442 million into the development of these wind power facilities. Under the terms of the agreement, the government of Sri Lanka will pay Adani Green Energy 8.26 cents per kilowatt-hour (kWh) for the electricity generated.
This agreement represents a significant milestone in Sri Lanka’s efforts to diversify its energy mix and transition towards cleaner sources of power. The country has been grappling with energy challenges, including power blackouts and fuel shortages, particularly evident during an economic crisis in 2022. In response, Sri Lanka has been actively seeking to expedite the implementation of renewable energy projects to reduce its dependence on imported fuel and mitigate the impact of volatile fuel prices.
In addition to this renewable energy initiative, the Adani Group is also engaged in the construction of a $700 million terminal project at the Colombo Port, Sri Lanka’s largest port. These developments underscore the growing collaboration between Sri Lanka and India in the renewable energy sector and highlight the commitment of both countries to sustainable energy practices amidst global concerns about climate change and energy security.
