Govt. approves 20-year power purchase agreement with Adani Group of India

The government has approved a 20-year power purchase agreement between Sri Lanka and India’s Adani Green Energy for the development of 484 megawatt wind power stations.

“The negotiated tariff rate of USD 0.0826 per kilowatt hour is to be paid in local rupees on the prevailing exchange rate at the time of payment,” Energy Minister Kanchana Wijesekara has said in a post on social media platform X.

Wijesekera has said that the purchasing cost will be below the current average cost of energy at 39.02 Sri Lanka rupees per kilo watt hour.

According to a Cabinet note, the development of wind power stations of 484 Mega Watt in Mannar and Pooneryn was granted Cabinet approval in March 2022.

After the approval of an agreement with Adani Green Energy Limited of India, a negotiation committee was 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 0.0826,” the Minister has said.

Environmental groups and scientists are protesting against the establishment of Adani Group’s wind farms in Mannar. They have warned that the wind turbines and the infrastructure will entail a huge environmental cost.