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The Adani Group is once again pursuing its $1-billion renewable energy project in Sri Lanka, with sources indicating that talks over tariff agreements are progressing. The project, undertaken by Adani Green Energy, was previously shelved in February when the company announced its withdrawal. However, ongoing negotiations suggest both parties are working toward a mutually acceptable tariff structure. According to sources familiar with the discussions, a tentative rate of 7 cents per kWh is being considered, while Sri Lanka had previously pushed for a lower range of 5-6 cents per kWh, down from the originally proposed 8.26 cents under a 20-year power purchase agreement. If a final agreement is reached, work on the project could commence as early as June, provided all regulatory and procedural requirements are completed. The Indian government is reportedly supportive of the project, viewing it as a strategic investment in the island nation. The Adani Group has not responded to requests for comment. The project, which involves the development of 484 MW wind farms in Mannar and Pooneryn along with associated transmission infrastructure, had previously stalled due to disagreements over tariffs. Discussions between Adani Green and Sri Lankan authorities, including officials from the Ceylon Electricity Board, had broken down, leading to uncertainty about its future. Despite formally notifying Sri Lanka’s Board of Investment about its withdrawal, Adani Green has not taken legal steps to exit the project entirely. The company has already invested $5 million in pre-development activities and remains open to future collaboration opportunities in the country. While the project has secured most regulatory approvals, environmental clearance for the Mannar site remains pending. The initiative, originally approved under Sri Lanka’s previous administration, faced scrutiny after the government under President Anura Kumara Dissanayake appointed a review committee to renegotiate the tariff structure. With discussions back on track, sources suggest that an agreement could be finalized soon, paving the way for Adani Green’s return to Sri Lanka’s renewable energy sector. |
