New Delhi, February 13
Adani Green Energy announced on Thursday that it is withdrawing from the renewable energy (RE) wind power project and two transmission projects in Sri Lanka.
The company conveyed its Board's decision to step back from further engagement in these projects but reiterated its commitment to Sri Lanka. Adani Green stated that it remains open to future collaboration if the Sri Lankan government desires.
In an official statement, the Adani Group said "Adani Green Energy has conveyed its Board's decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires".
In May 2024, the previous Sri Lankan government had agreed to purchase power from Adani wind plant, at USD 0.0826 per kilowatt-hour.
However, the new government revoked Adani Group's power purchase agreement in January 2025. According to media reports the new government wanted to review and renegotiate the terms to bring the cost below USD 0.06 per unit.
It now seems that renegotiation has failed and Adani has withdrawn the planned wind power plants from Sri Lanka.
Adani Group had planned to develop two wind farms with a total capacity of 484 megawatts in Sri Lanka's Mannar and Pooneryn regions, with an investment of USD 740 million. The project were slated for completion by mid-2026, however it encountered hurdles including opposition from environmental groups and legal challenges in Sri Lanka's Supreme Court over ecological concerns.
The project was approved in February 2023, when the Sri Lanka's Board of Investment.
The project was expected to contribute significantly to Sri Lanka's renewable energy sector. However, it now appears that the company and the Sri Lankan authorities were unable to reach a final agreement, leading to Adani Green's decision to withdraw.
Following this announcement, Adani Green Energy's shares gained 2 per cent in the stock market and were trading at Rs 921 at the time of filing this report. The stock movement suggests that investors have reacted positively to the company's decision.
- ANI