Adani Green Energy Inks 20-Year Power Agreement with Sri Lanka

Adani Green Energy secures a 20-year power purchase deal with Sri Lanka for two wind power stations.

  • Adani Green Energy secures a 20-year power purchase deal with Sri Lanka for two wind power stations.
  • The agreement involves the development of 484 megawatts wind power plants in Mannar town and Pooneryn village.
  • Adani Group’s involvement in Sri Lanka extends to a $700 million terminal project in Colombo, the country’s largest port.

Adani Green Energy has struck a significant deal with Sri Lanka, entering into a 20-year power purchase agreement for two wind power stations developed by the company. The agreement, as per the Sri Lankan government’s cabinet statement, entails the development of 484 megawatts wind power plants in Mannar town and Pooneryn village, both located in the Northern province of Sri Lanka. Under the terms of the agreement, Adani Green Energy will be paid 8.26 cents per kilowatt-hour (kWh) for the energy generated.

This move by Adani Green Energy comes amidst the company’s broader engagement in Sri Lanka, including its participation in a $700 million terminal project in Colombo, the largest port in the country. However, despite these developments, Adani Green Energy Ltd shares experienced a slight dip in Tuesday’s trade, with the stock trading lower at Rs 1,750.30. Both BSE and NSE have placed the securities of Adani Green under the long-term ASM (Additional Surveillance Measure) framework, cautioning investors about potential volatility in share prices.

The power agreement between Adani Green Energy and Sri Lanka is significant, particularly against the backdrop of Sri Lanka’s recent economic crisis and power shortages. Sri Lanka has been actively seeking to accelerate its renewable energy projects to mitigate reliance on imported fuel and address energy shortages, underscoring the importance of partnerships with renewable energy providers like Adani Green Energy.