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Home Business & Finance Economic Policies

Sri Lanka expects India’s Adani wind power price to be below 6 US cents todayheadline

January 28, 2025
in Economic Policies
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ECONOMYNEXT – Sri Lanka government will start discussion with India’s Adani Group over a new power purchase agreement and expects the price to be below 6 US cents per kilowatt-hour from the earlier 8.26 cents, Cabinet Spokesman Nalida Jayatissa said.

“We have started reviewing the power purchasing agreement. The earlier price was too high for renewable energy. We expect to see the price to be below 6 (US cents),” Jayatissa, also the Health and Media Minister, told reporters in Colombo.

The government representatives had been planning to visit India to discuss the project, but it will be done after the review, he said.

Under the signed power purchase agreement, Adani Green Energy is set to invest $442 million to build two wind power stations in Sri Lanka’s northern province, receiving 8.26 cents per kilowatt-hour. Sri Lanka.

However, the new government wanted to cancel this power purchase agreement and negotiate  for a lower rate.

Adani Group last week said the wind power projects in Sri Lanka are under review to re-evaluate already approved tariffs to ensure that the project terms align with the new government’s current priorities and energy policies.

President Anura Kumara Disanayake during his election campaign promised to review proposed Adani’s wind power projects in Northern Mannar and Pooneryn.

According to documents filed in court a cabinet decision on January 02, 2025 revoked a May 2024 decision on the Adani project proposal.

In May Sri Lanka said Cabinet approval has been given to pay 8.26 cents per unit for the 484MW project, triggering a controversy over the price and court litigation by activists.

Adani’s projects have run into controversy after activists went to courts over possible impact on the environment and higher tariff.

The government has said it cannot make a final decision on the proposed deals by India’s Adani Group as there was an ongoing court case. (Colombo/January 28/2025)

Tags: AdanicentsexpectsIndiaIndiasLankaPowerPriceSriSri Lnakatodayheadlinewindwind power
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