Adani Green Energy Pulls Out from Sri Lanka Wind Projects Amid Tariff Renegotiations

Adani Green Energy, a part of Gautam Adani's conglomerate, withdrew from two wind power projects in Sri Lanka after the new government sought to renegotiate tariffs. Although AGEL respects Sri Lanka's decision, the projects, worth USD 1 billion, faced environmental opposition and cost-related scrutiny.

Adani Green Energy, linked to Gautam Adani's conglomerate, has retreated from two wind power projects in Sri Lanka. This move follows the nation's newly elected government opting to renegotiate tariffs on renewable energy. The decision was part of broader cost-cutting strategies under President Anura Kumara Dissanayake.

With an initial investment of USD 1 billion, the company aimed to install wind energy projects and associated transmission lines. Yet, environmental concerns and legal challenges surfaced. Additionally, a US indictment involving accusations of bribery by Adani group founders added complexity, prompting further scrutiny and contract reassessment.

The new government endeavored to reduce energy tariffs from USD 0.0826 per kilowatt-hour to below USD 0.06. Unable to compromise on terms, Adani Green Energy chose to exit. Nonetheless, Adani's commitment to Sri Lankan development remains, as evidenced by a substantial port terminal project in Colombo.

(With inputs from agencies.)