Sri Lanka has announced its venture into a significant renewable energy initiative, revealing a 20-year agreement with the Adani Group to procure electricity from a wind power plant.
The $442-million project, spearheaded by the Indian conglomerate, marks a substantial step towards sustainable energy solutions for the island nation.
According to Energy Minister Kanchana Wijesekera, the state-run energy utility will purchase electricity at $0.0826 per kilowatt-hour, offering a noteworthy reduction of about one-third from the current average rates.
Anticipated to be operational within two years, the Adani Group’s wind power plant is poised to be integrated into the national grid, providing a significant boost to Sri Lanka’s renewable energy capacity. This move aligns with the global trend towards reducing carbon emissions and combating climate change.
The collaboration between Sri Lanka and the Adani Group follows the awarding of a $700-million strategic port terminal project in Colombo to the conglomerate in 2021. With Adani Group’s nomination as the contractor by the Indian government, the partnership underscores the strengthening ties between the two nations.
Despite facing allegations of corporate fraud by a US short-seller last year, Adani Group has pressed forward with its initiatives, including the Colombo port project. The port terminal, strategically located adjacent to a Chinese-operated terminal, is important for the geopolitical dynamics in the Indian Ocean region, with India seeking to assert its presence amidst China’s expanding influence.
