Adani Green Energy, the renewable energy division of India’s Adani Group, has announced its withdrawal from a $1 billion wind power project in Sri Lanka. The decision comes after disagreements over the power purchase price.
The company had already secured most of the necessary permits for the wind farms in Mannar and Pooneryn, including approval for transmission lines. However, the newly elected Sri Lankan government has signaled its intention to renegotiate the agreed-upon tariffs, seeking a lower purchase price.
Sri Lanka is now aiming to reduce the price from $0.08 per kilowatt-hour (kWh) to $0.06 or lower. In response, the government has formed a committee to revisit the pricing terms, a development that Adani Green Energy confirmed in a statement.
In a letter to Sri Lanka’s Board of Investment, Adani Green Energy said it would “respectfully withdraw” from the project. The company acknowledged that a new Cabinet-appointed negotiation committee had been set up to review the terms. It expressed its respect for Sri Lanka’s sovereignty and decisions but stated that it would no longer pursue the wind power initiative.
Despite pulling out of this project, Adani Group emphasized its continued interest in exploring other opportunities in Sri Lanka.
The Adani Group’s ventures, including this wind power project, have come under greater scrutiny following investigations by U.S. authorities. In November, U.S. officials launched inquiries into Adani executives, accusing them of bribing Indian officials to secure solar energy contracts and hiding these activities while raising funds from American investors. These allegations have added further complexity to the group’s international projects.
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