The Adani backed wind power project will not proceed unless it meets the price set by the current government, regardless of any existing agreements, said President Anura Kumara Dissanayake.
Addressing a public rally held in Matara, he pointed out that the agreement involves selling wind power to the Sri Lankan government at Rs. 25 per unit, and that former President Ranil Wickremesinghe had insisted on adhering to this agreement.
While the former President claimed that halting the wind power project would be a crime, Dissanayake countered that the real crime is continuing the project at such high prices.
His remarks come just days before Indian Prime Minister Narendra Modi’s scheduled visit to Sri Lanka on April 4.
Adani Green Energy Limited (AGEL) had officially withdrawn from its proposed $1 billion renewable wind farm and transmission project in Sri Lanka, citing prolonged discussions and new government renegotiation efforts.
According to industry experts, the cost of 8.26 US cents per kWh, Adani’s wind energy, if realised, will significantly undercut the country’s current oil and coal-based generation, which averages over 14 cents. The pricing differential will enable Sri Lanka to reduce its annual power generation costs by approximately US $ 80 million.
Sri Lanka spends around US $ 300 million annually on imported oil and coal for electricity. Incorporating Adani’s wind project will save over $200 million in annual foreign exchange outflows, greatly enhancing energy security and economic stability.
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