Sri Lanka has signed a 20-year power purchase deal with Adani Green Energy Ltd, an Indian company, for two wind power stations, stated a cabinet announcement on Tuesday.
Adani Green Energy secured approval last February to invest £353.6 million in developing wind power plants in Mannar town and Pooneryn village, both in Sri Lanka's Northern province.
Under the agreement, the company will receive 8.26 cents per kilowatt-hour, as per the government.
In addition to this deal, the Adani Group is engaged in constructing a £560 million terminal project at Colombo port, Sri Lanka's largest.
Facing economic challenges in 2022, including power blackouts and fuel shortages, Sri Lanka is pushing renewable energy projects to mitigate imported fuel cost fluctuations.
Energy minister Kanchana Wijesekara revealed on social media platform X that the negotiated tariff rate would be paid in local currency, at the prevailing exchange rate. This rate is lower than the current average energy cost.
"The negotiated tariff rate of £0.06608 per kilowatt-hour is to be paid in local rupees on the prevailing exchange rate at the time of payment," stated Minister Wijesekara, adding that the purchasing cost would be below the current average cost of energy at 31.22 Sri Lanka rupees per kilowatt-hour.
Approval for the development of 484 megawatt wind power stations in Mannar and Poonerin was granted in March 2022. Following this, a negotiation committee was formed to assess Adani Green Energy Limited's proposal. The cabinet approved the final price of £6.61 per unit based on the committee's recommendations.
(Agencies)
