Sri Lanka’s government has decided to renegotiate a power purchase agreement with India’s Adani Group for its wind power project. Responding to queries on the Adani project, Minister Nalinda Jayatissa clarified that the project has not been suspended, but steps are being taken to amend the prices to ensure it is beneficial for Sri Lanka. Dr. Jayatissa has said that the renegotiation aims to lower the tariff from 8.26 US cents to below 6 cents per kilowatt-hour.
Adani Green Energy is investing $442 million to construct two wind power stations in Sri Lanka’s northern province. However, the new administration had concerns over the high tariff for renewable energy and environmental implications, triggering a review of the deal.
President Anura Kumara Dissanayake, during his election campaign, had pledged to revisit the Adani projects in Mannar and Pooneryn. Consequently, earlier this month, the cabinet revoked an earlier approval from last year for the power purchase agreement.
Minister Jayatissa had last week clarified that only the cabinet decision related to the power purchase agreement was annulled while a special committee has been formed to review the project, address environmental concerns raised by activists, and ensure the deal aligns with national energy policies.
