New Delhi: Sri Lanka has entered into a 20-year-long Power Purchase Agreement (PPA) with Adani Green Energy for two wind power projects developed by the company, a statement issued by the Sri Lankan Cabinet on Tuesday said. Adani Green Energy will be paid 8.26 cents per kilowatt-hours (kWh) as per the agreement, said the Sri Lankan government. The two projects are situated in Mannar town and Pooneryn village in the northern province of Sri Lanka.
“Approval of the Cabinet of Ministers was granted at their meeting held on 07.03.2022 to enter into a memorandum of understanding with M/s Adani Green Energy Limited of India to develop wind power stations in Mannar and Pooneryn. Accordingly, a negotiation committee has been appointed by the Cabinet of Ministers in order to evaluate the project proposal furnished by the said company. Based on the recommendations of that Committee, the Cabinet of Ministers granted approval to the resolution forwarded by the Minister of Electricity and Power to accept the last price as USD 8.26 cents (subject to payment in Sri Lankan rupees as per the actual foreign exchange rate) oer KWfor the electricity generated under the proposed project. And to award this tender to M/s Adani Green Energy SL Limited for a period of 20 years,” said the statement.
Adani Green Energy, the renewable energy unit of the Adani Group, won the tender in February last year to invest USD 442 million and develop the 484 MW wind power plants. The group is also building a $700 million terminal project at Sri Lanka’s largest port in Colombo. The South Asian island nation faced an acute economic crisis in 2022 which caused debilitating power blackouts and fuel shortages. As a way to hedge against rise in imported fuel costs, the cash-strapped nation is looking to fast-track renewable energy projects.
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