Adani Wind Projects to Deliver Affordable Power in Sri Lanka

The Adani Group is set to establish two wind power projects in Sri Lanka with a combined capacity of 484 MW, offering the country's cheapest tariff at 8.25 cents per unit (LKR 24.75). This rate is significantly lower than the tariffs from Sri Lanka's existing renewable and traditional energy sources, which range from 8.75 cents to 26.99 cents per unit.

With an investment of over $1 billion, these wind projects will be the largest of their kind in Sri Lanka. The Adani Group has received approval from the Sri Lankan cabinet, and power purchase agreements are currently being finalized. Construction is expected to begin shortly thereafter, with project completion anticipated within two years.

Located in the northern part of Sri Lanka near the Indian mainland, the projects are strategically significant for both nations. They will support Sri Lanka's goal of achieving 70% renewable energy generation by 2030 and reaching carbon neutrality by 2050. Currently, fossil fuel-based power plants account for over half of Sri Lanka's total power generation, while solar and wind contribute less than 8%, and hydro power 31%.

As Sri Lanka's power demand is projected to grow by around 5% annually over the next 25 years, an additional 7,000 MW of renewable energy will be needed, primarily from solar (4,700 MW) and wind (1,800 MW). The Adani wind projects will displace over $270 million worth of fossil fuels annually, saving valuable foreign exchange and providing much-needed foreign direct investment following the country's recent economic crisis.

These projects will not only reduce Sri Lanka's fossil fuel import bill but also support the country's transition to sustainable energy.

HBL